By Chioma Obinagwam
Oando PLC, a leading African energy company listed on the Nigerian Exchange Group (NGX) and Johannesburg Stock Exchange (JSE), reported a 44% revenue surge to N4.1 trillion in its audited FY2024 results, up from N2.9 trillion in 2023.
Upstream Performance
The Company told Confiance News in a statement on Wednesday.
Oando’s upstream operations saw a 3% production increase to 23,727 boepd, driven by a 27% rise in crude oil output to 7,558 bopd. However, NGL production fell 35% to 156 bpd, and gas production dropped 5% to 16,013 boepd. The company’s 2P reserves nearly doubled, rising 95% to 983 MMboe from 505 MMboe, achieving a 188% reserves replacement ratio. This growth reflects the impact of its acquisition of Nigerian Agip Oil Company (NAOC) in August 2024. Oando maintained an 86% operational uptime, ensuring reliable off-take and minimizing deferred production.
Other indigenous energy firms also reported strong growth post-IOC divestments, with Seplat’s revenue up 137% to N1.65 trillion and Aradel’s up 162% to N581.2 billion.
Group CEO Wale Tinubu highlighted, “2024 marked a pivotal year with the NAOC acquisition, doubling our stake in OML 60–63 assets from 20% to 40% and boosting our 2P reserves to 1 billion barrels, solidifying our upstream leadership.”
Downstream Challenges
Oando’s trading subsidiary saw a 37% drop in crude oil sales to 20.7 million barrels due to structural shifts in Nigeria’s oil market. Refined product volumes also fell 64% to 599 kMT, impacted by weakened domestic demand amid macroeconomic challenges.
Oil Price Outlook
Global oil price forecasts for 2025 remain uncertain. JP Morgan predicts Brent peaking at $66/bbl in 2025 and $58/bbl in 2026, while the U.S. EIA projects a decline from $81/bbl in 2024 to $74/bbl in 2025 and $66/bbl in 2026, citing rising global production and slower demand growth.
Renewable Energy Progress
Oando advanced its clean energy initiatives, with its electric mass transit program covering 121,145 km, serving over 205,000 passengers, cutting 163,546 kg of CO₂ emissions, and saving 60,000 liters of diesel. The company signed MoUs for wind projects in Cross River and Edo States and launched a geothermal feasibility study with NNPC to repurpose mature wells for renewable energy.
Looking Ahead
Tinubu outlined 2025 priorities: “We aim to unlock acquisition synergies, enhance security to curb oil theft, optimize costs, restructure our balance sheet, and leverage technology for efficiency. Our dual-track strategy of rig-less interventions, well workovers, and aggressive drilling will drive us toward our 2029 goal of 100,000 bopd and 1.5 tcf of gas.” Oando’s 2025 production guidance is set at 30,000–40,000 boepd, reflecting NAOC’s four-month contribution in 2024.
Industry Impact
Indigenous operators like Oando, empowered by recent IOC divestments, are poised to lead Nigeria’s energy sector. Their local expertise enhances asset management, boosts employment, builds capacity, and retains tax revenue domestically, fostering economic growth.
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