Oando reduces production costs to $15.39 per barrel

Oando Plc has reduced its production operating costs by 22 percent to $15.39 per barrel of oil equivalent in the nine months ending September 2026, compared to $19.67 in the same period of 2025. The company attributes this cost reduction to optimization across transportation, logistics, services, and information and communications technology, along with increased production from a largely fixed field cost base.

Oando's average daily production increased by 14 percent to 42,985 barrels of oil equivalent per day, and facility uptime improved to 96.1 percent from 85 percent. CEO Wale Tinubu highlighted the company's investment drive and operational execution in improving efficiency, reliability, and production. The company's production of crude oil increased by 12 percent to 12,193 barrels per day, while gas production rose by 13 percent to 28,689 barrels of oil equivalent per day.

NGL production saw a 53 percent increase to 2,103 barrels per day. Sales volumes for crude oil lifted by 43 percent to 3.97 million barrels, while natural gas sales grew by five percent to 34.01 billion standard cubic feet. Revenue increased by nine percent to N2.78tn, with gross profit rising by 483 percent to N174.5bn from N29.8bn.

Oando's financial position saw total borrowings decrease by 22 percent to N2.16tn, and cash generated from operations reached N285bn. The company invested N110.7bn in capital expenditure, primarily directed towards drilling activities across its OML 60-63 assets. Future drilling plans include completing seven-well drilling and adding between 16,000 and 20,000 barrels of oil equivalent per day in gross production.