Oando to raise $750 million to boost oil output by 300%

Oando Plc is planning to raise up to $750 million to fund a major drilling campaign aimed at boosting its oil output by as much as 300%.

The plan was disclosed by the company’s Chief Executive Officer, Wale Tinubu, in an interview with Reuters.

He said Oando, which recorded an average production of just over 32,000 barrels of oil equivalent per day in the 2025 fiscal year, is targeting the drilling of as many as 100 wells to significantly ramp up production.

Tinubu explained that the ongoing Iran war has disrupted global energy supply chains, creating opportunities for African producers to attract new investment flows.

He noted that while investors had previously been hesitant due to perceptions of Africa as a high-risk environment, recent geopolitical tensions, including the war and Russia’s invasion of Ukraine in 2022, have shifted sentiment in favour of the continent.

Over the past decade, Oando has raised between $3 billion and $4 billion, largely from European financiers. However, funding from Europe has declined sharply in recent years as banks scale back exposure to fossil fuel projects on the continent.

Oando has also expanded beyond Nigeria, establishing operations in Angola and exploring new opportunities in Ghana and Ivory Coast as part of its regional growth strategy.

Tinubu warned that ongoing geopolitical instability would continue to shape global energy markets and sustain interest in Africa’s hydrocarbon reserves.

Oando is not the only energy company seeking fresh capital to scale operations.

The move comes amid global supply disruptions linked to the Persian Gulf conflict, highlighting the urgency for Africa to strengthen local production capacity and reduce reliance on imports. The group aims to grow its turnover to $100 billion by 2030, reflecting the scale of its ambitions.

Meanwhile, the Dangote refinery has already exported about 17 cargoes of gasoline to other African countries, while urea fertiliser exports have also increased as buyers seek alternative supply sources.