Oando Plc has committed $550 million in crude prepayment to support NNPC’s Project Gazelle.
The company disclosed this investment in its 2024 audited financial results, a landmark year highlighted by its acquisition of Nigerian Agip Oil Company (NAOC).
Oando finalized the NAOC acquisition on August 22, 2024, a strategic move that significantly enhanced its operations and financial standing.
Group Chief Executive Wale Tinubu described 2024 as transformative, noting that the NAOC deal capped off a decade-long expansion plan. The acquisition doubled Oando’s stake in the OML 60–63 assets and boosted its proven reserves from 500 million to 1 billion barrels of oil equivalent.
Oando’s revenue surged 44% to ₦4.1 trillion, up from ₦2.9 trillion in 2023. Profit after tax jumped 267% to ₦220 billion, driven by new assets and favorable foreign exchange rates.
Through its involvement in Project Gazelle—NNPC’s initiative to stabilize oil revenue via forward crude sales, Oando aims to support consistent exports and strengthen Nigeria’s fiscal stability. Its $550 million contribution reflects strong confidence in the project and Nigeria’s energy future.
Looking ahead, Tinubu said the company will prioritize delivering value following the acquisition.
Oando plans to tap into NAOC synergies, roll out a new security approach to tackle pipeline vandalism, cut costs, and scale production to 100,000 barrels of oil per day and 1.5 trillion cubic feet of gas by 2029.
In 2024, Oando raised its average daily output to 23,727 barrels of oil equivalent, closing the year at 36,000 boepd. Crude oil output climbed 22% to 7,558 barrels per day, while proven and probable reserves nearly doubled to 983 million barrels.
The company maintained strong safety standards, logging over 7.35 million man-hours without incident and keeping its Lost Time Injury Frequency at 0.05.
Oando also made progress on its sustainability goals, cutting routine gas flaring by 92% and staying on track to eliminate it entirely by 2027.
For 2025, Oando targets daily production between 30,000 and 40,000 boepd, crude oil trading volumes of 25–35 million barrels, and up to 1 million metric tonnes of refined products. It also plans to deploy 50 new electric buses to accelerate Nigeria’s shift to cleaner transport.
source: businessday.ng
