Oando Plc, has announced a $550 million crude prepayment contribution to the Nigerian National Petroleum Company’s (NNPC) Project Gazelle.
The announcement comes as part of Oando’s audited financial results for the twelve months ending December 31, 2024, a defining year that saw the company complete its strategic acquisition of Nigerian Agip Oil Company (NAOC).
The acquisition, finalised on August 22, 2024, marked a major milestone in Oando’s decade-long growth strategy and has already begun to reshape the company’s operational and financial outlook.
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Wale Tinubu, Oando group chief executive, said, “2024 was a defining year for Oando, with the successful acquisition and integration of NAOC marking the culmination of a decade-long strategic growth journey. This has significantly deepened our upstream portfolio, doubling our working interest in the OML 60–63 assets and increasing our 2P reserves from 500 million to 1 billion barrels of oil equivalent.”
Oando recorded a 44 percent increase in revenue, reaching N4.1 trillion, up from N2.9 trillion in 2023. Profit after tax surged by 267% to ₦220 billion, driven by the enhanced asset base and favorable forex impacts.
The Group’s participation in Project Gazelle, a key initiative by NNPC aimed at improving oil revenue stability through forward crude oil sale agreements, is expected to play a pivotal role in ensuring reliable export volumes and bolstering Nigeria’s fiscal balance. Oando’s $550 million input reflects confidence in both the project and the broader trajectory of the national energy sector.
Tinubu emphasised that 2025 will focus on execution and delivering value post-acquisition.
“Our key priorities include unlocking synergies from the NAOC acquisition, implementing a revamped security framework to address pipeline vandalism, optimizing costs, and ramping up production towards our target of 100,000 barrels of oil per day and 1.5 trillion cubic feet of gas by 2029,” he noted.
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Operational Highlights
In 2024, Oando’s average daily production rose to 23,727 barrels of oil equivalent per day (boepd), with a year-end exit rate of 36,000 boepd. Crude oil production increased by 22% to 7,558 bopd, while 2P reserves jumped 95% year-on-year to 983 million barrels of oil equivalent.
The company also maintained a strong safety record with a Lost Time Injury Frequency (LTIF) rate of 0.05 and over 7.35 million man-hours worked without incident. Oando reaffirmed its commitment to sustainability, achieving a 92 percent reduction in routine gas flaring, putting it on track to meet its 2027 zero-flaring goal.
Outlook for 2025
Looking ahead, Oando has set a production guidance of 30,000 to 40,000 boepd, with trading targets of 25–35 million barrels of crude oil and up to 1 million metric tonnes of refined products. The company plans to launch 50 new electric buses to support Nigeria’s transition to cleaner mobility.
