Oando Plc has committed $550 million in crude prepayment to support the Nigerian National Petroleum Company’s (NNPC) Project Gazelle—an initiative designed to stabilize oil revenues through forward crude sales.
The investment was disclosed in the company’s audited 2024 financial results, marking a pivotal year highlighted by Oando’s acquisition of Nigerian Agip Oil Company (NAOC). The transaction, finalized on August 22, 2024, significantly expanded Oando’s asset base and improved its financial outlook.
Group Chief Executive Wale Tinubu described 2024 as a transformative year for the company. He noted that the NAOC acquisition was the culmination of a decade-long growth strategy. The deal effectively doubled Oando’s interest in the OML 60–63 assets and increased its proven reserves from 500 million to 1 billion barrels of oil equivalent.
Oando’s financial performance reflected these strategic gains. Revenue surged by 44% to ₦4.1 trillion, up from ₦2.9 trillion in 2023. Profit after tax rose sharply by 267% to ₦220 billion, driven by the acquisition of new assets and favorable foreign exchange movements.
With its substantial contribution to Project Gazelle, Oando aims to promote steady crude exports and enhance Nigeria’s fiscal stability. The $550 million prepayment underscores the company’s confidence in the project and its long-term commitment to the country’s energy sector.
Looking ahead, Tinubu stated that Oando’s focus will be on delivering value from the NAOC acquisition. Plans include leveraging synergies, introducing a revamped security strategy to combat pipeline vandalism, cutting operational costs, and scaling production to 100,000 barrels of oil per day and 1.5 trillion cubic feet of gas by 2029.
In 2024, Oando increased its average daily production to 23,727 barrels of oil equivalent, ending the year at 36,000 boepd. Crude oil output climbed 22% to 7,558 barrels per day, while combined proven and probable reserves nearly doubled to 983 million barrels.
The company also maintained strong safety performance, recording over 7.35 million man-hours without a single incident, and kept its Lost Time Injury Frequency Rate at 0.05.
On the sustainability front, Oando made notable progress by cutting routine gas flaring by 92%, remaining on track to eliminate it entirely by 2027.
For 2025, the company targets daily production between 30,000 and 40,000 boepd, crude oil trading volumes of 25 to 35 million barrels, and up to 1 million metric tonnes of refined products. It also plans to deploy 50 new electric buses to support Nigeria’s transition to cleaner transportation solutions.
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