Oando Targets 300% Output Surge With $750m Drilling Expansion Plan

Oando Plc is planning to raise up to $750m to finance an ambitious drilling campaign aimed at boosting its oil production by as much as 300 per cent, as the company positions to capitalise on shifting global energy dynamics.

The Chief Executive Officer of the company, Wale Tinubu, disclosed the plan in an interview with Reuters, noting that the proposed funding would support the drilling of up to 100 new wells to significantly ramp up output.

According to him, the expansion drive comes on the back of evolving geopolitical tensions that have disrupted global energy supply chains and redirected investor attention toward Africa’s oil and gas sector.

Oando currently produces an average of just over 32,000 barrels of oil equivalent per day (boepd) based on its 2025 fiscal year performance. The planned drilling programme, if successfully executed, is expected to substantially increase production capacity and strengthen the company’s market position.

Tinubu said the company is actively engaging investors to secure the required financing, emphasising that the scale of the proposed drilling campaign reflects Oando’s long-term growth strategy.

“We are pushing very, very hard towards getting the financing that we need to do an extensive drilling campaign,” he said.

He explained that global developments, including ongoing tensions in the Middle East and the aftermath of Russia’s invasion of Ukraine in 2022, have altered investment flows within the energy sector, creating fresh opportunities for African producers.

Tinubu noted that while Africa has historically been perceived as a high-risk investment destination, the current geopolitical climate is reshaping that narrative, with investors increasingly viewing the continent as relatively stable compared to other oil-producing regions.

“Africa is very, very peaceful compared to these regions,” he added.
Industry analysts say the company’s fundraising plan underscores a broader trend among African energy firms seeking to leverage supply disruptions and rising demand to attract capital and scale operations.

If successful, the $750 million capital raise would mark one of the more significant upstream investment efforts by a Nigerian independent oil company in recent years, potentially reinforcing Nigeria’s role in the global energy market amid ongoing supply realignments.