Oando’s extensive portfolio includes two power plants, Kwale 1 and 2, with a combined capacity of 500MW.
Lagos, Nigeria — Oando Plc has made history as Nigeria’s first indigenous International Oil Company (IOC) with a valuation of $4 billion, bolstered by its operations within the São Tomé and Príncipe Exclusive Economic Zone (EEZ).
This milestone is a testament to the strategic leadership of the company’s Chief Executive Officer, Mr. Wale Tinubu, who has been instrumental in steering Oando’s growth in the oil and gas sector.
Recognized as a leading African exploration and production company, Oando’s asset portfolio spans the entire spectrum of upstream operations, including exploration, development, and production of both oil and gas. The company holds interests in over 16 licenses, covering a diverse array of onshore, swamp, and offshore assets.
According to a Certified Professional Reserves (CPR) Report by DeGolyer and MacNaughton (D&M)—the second largest auditor globally, with a track record of auditing major oil firms like ENI/NAOC, Chevron, and Shell—the company’s Gross Recoverable 2P reserves on its original 20% Certificate of Proficiency (CoP) stake, coupled with its new 20% NAOC stake, have a Net Present Value (NPV) of $2 billion each.
This brings the total value of Oando to $4 billion, prior to accounting for acquisition debt and legacy debt. When appropriate discounts and working capital considerations are factored in, the Actual Net Asset Value (NAV) of the company, less all long-term debt, is estimated to be around $3 billion.
Oando’s extensive portfolio includes two power plants, Kwale 1 and 2, with a combined capacity of 500MW. The company operates three large gas plants and has a dedicated gas pipeline to Eleme Petrochemicals, making it the primary supplier to the facility. It also owns a dedicated gas pipeline to the Liquefied Natural Gas (LNG) terminal.
With over 200 wells in production, nine flow stations, and its own export terminal in Brass, Oando’s transformation into a major IOC is a remarkable achievement for a Nigerian firm. The company has become the largest supplier of gas to Eleme Petrochemicals and achieved a peak production rate of 100,000 barrels per day in oil and 1.5 billion standard cubic feet (scf) per day in gas last year.
In addition to its operational prowess, Oando’s stock has demonstrated strong performance in the financial markets. In 2023, the company’s shares delivered an impressive 159% year-to-date gain. This momentum carried into 2024, with a 14% increase in Q1. Following the announcement of the federal government’s approval of its 100% acquisition of NAOC, Oando’s share price soared to a five-year high of N47.85, resulting in a year-to-date gain of 371.5% and securing its position as the second-best performing stock on the Nigerian Exchange Group (NGX) at the time.
Oando’s 2023 financial results, released on May 31, 2024, revealed a significant turnaround, with a pre-tax profit of N104.1 billion, compared to a pre-tax loss of N61.8 billion in 2022. Commenting on the results, Wale Tinubu stated, “Despite persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7 billion in 2023. This was largely driven by increased trading volumes from our strategic global partnerships and net foreign exchange gains on the group’s foreign currency-denominated assets.”
Looking ahead, Oando’s acquisition of NAOC is set to be a transformative move, with the potential to significantly boost its production capacity. Tinubu has assured stakeholders of the company’s commitment to optimizing its new assets, advancing production, and exploring strategic diversification into clean energy and energy infrastructure.
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