Oando Plc reports a robust N4.1 trillion revenue in FY 2024, a 44% increase, driven by a 95% surge in 2P reserves to 983 MMboe and the acquisition of NAOC, positioning it for significant growth in Nigeria’s energy sector

Oando Plc’s FY2024 results demonstrate a robust financial performance, with Africa’s leading integrated energy company announcing a significant 44% increase in revenue, reaching N4.1 trillion in its audited Full Year (FY) 2024 financial report, up from N2.9 trillion in FY 2023.

Also read: Oando Plc’s historic Obodo Crude lift and rise as Nigeria’s global energy champion

This impressive growth is largely attributed to strategic acquisitions and enhanced operational efficiencies.

In its upstream operations, Oando witnessed a 3% increase in overall production to 23,727 barrels of oil equivalent per day (boepd).

This was primarily driven by a 27% surge in crude oil production to 7,558 bopd. While NGL production and gas saw respective declines of 35% to 156 bpd and 5% to 16,013 boepd, the company’s 2P reserves experienced a phenomenal 95% year-on-year growth, reaching 983 MMboe (2023: 505 MMboe).

This represents a remarkable 188% reserves replacement ratio, significantly bolstering Oando’s upstream portfolio post-acquisition.

The company also maintained an impressive operational uptime of 86%, contributing to off-take reliability and reduced deferred production.

This strong performance by Oando mirrors similar successes reported by other indigenous players in Nigeria’s energy sector, following the recent wave of International Oil Company (IOC) divestments.

Seplat recorded a revenue of ₦1.65 trillion, a 137% increase from 2023, while Aradel posted ₦581.2 billion in revenue, a 162% increase compared to the previous year.

Wale Tinubu, Group Chief Executive, Oando PLC, commented on the company’s upstream performance: “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 which has significantly deepened our upstream portfolio, resulting in our assumption of operatorship of the OML 60–63 series and the doubling of our working interest in the assets from 20% to 40%, as well as our 2P reserves from 500 million barrels of oil equivalent to 1 billion barrels.”

In the downstream sector, Oando’s trading subsidiary reported a sale of 20.7 million barrels of crude oil in 2024, representing a 37% decline from 2023.

This reduction was primarily due to structural changes within the Nigerian oil market.

Additionally, refined product volumes decreased by 64% to just over 599 kMT, impacted by weakened domestic demand stemming from challenging macroeconomic conditions in-country.

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 which has significantly deepened our upstream portfolio…

Projections for global oil prices and demand in 2025 remain uncertain. JP Morgan forecasts Brent crude to peak at $66/bbl in 2025, while the U.S. Energy Information Administration (EIA) predicts Brent crude oil prices to fall from an average of $81 per barrel (b) in 2024 to $74/b in 2025 and $66/b in 2026, citing increased global production coupled with slower global demand growth.

Within its renewable energy business, Oando continued its clean energy agenda, making measurable progress across multiple verticals.

By the end of 2024, its electric mass transit programme had covered 121,145 km, transported over 205,000 passengers, displaced 163,546 kg of CO₂ emissions, and saved more than 60,000 litres of diesel.

Other notable achievements include signing MoUs for wind projects with Cross River and Edo States, and launching a geothermal feasibility study in collaboration with NNPC, exploring the conversion of mature wells to renewable power assets.

As the company continues to integrate its expanded portfolio following its recent strategic acquisition, current projections indicate strong momentum and clear ambition for 2025.

Mr. Tinubu remarked: “Looking ahead, 2025 will be our year of execution. Our key priorities shall include unlocking synergies from the acquisition, addressing above-ground security risks through the implementation of a revamped security framework aimed at curbing the persistent theft of oil, cost optimization, balance sheet restructuring, enhancing operational efficiency, and leveraging technology to improve productivity across our operations.”

He added: “In our bid to ramp up production towards achieving our target of 100,000 bopd and 1.5 tcf of gas by 2029, we shall pursue a dual-track approach of rig-less interventions and well workovers, complemented by an aggressive drilling program. We are excited by the opportunities that lie ahead and remain committed to delivering enhanced shareholder returns, shared prosperity and maintaining our position as a leading player in Africa’s evolving energy landscape.”

The audited FY 2024 results include approximately four months of contribution from Nigerian Agip Oil Company (NAOC), following the completion of its acquisition on August 22, 2024.

Consequently, Oando has set a production guidance of 30,000–40,000 boepd in its 2025 outlook, aligning with its post-acquisition optimisation plans to maximise portfolio value and support its four-year target of reaching 100,000 barrels per day.

This shift underscores that local players, particularly those that have become operators following recent IOC divestments, are increasingly well-positioned to drive the future of the Nigerian energy sector.

These indigenous companies possess unique insights and contextual experience crucial for effectively managing onshore and shallow water assets.