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.
“We are pushing very, very hard towards getting the financing that we need to do an extensive drilling campaign,” he said.
“Africa is very, very peaceful compared to these regions,” he added.
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.
This shift has pushed indigenous energy firms to seek alternative funding from institutions such as the African Export-Import Bank and the African Finance Corporation, which recently backed a $2.5 billion portion of a $4 billion syndicated loan for the Dangote Petroleum Refinery.
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.
“Even if the ceasefire lasts, which, hopefully, it will, it wouldn’t change the fact that consistently, you’re going to find disruptions,” he said.
