Oando reduces production costs to $15.39 per barrel
Oando Plc has reduced its production operating costs by 22% to $15.39 per barrel in the nine months ended September 2026, as daily production rose by 14%. Read More: https://punchng.com/oando-reduces-production-costs-to-15-39-per-barrel/
Oando, a Nigerian energy company, has successfully reduced its production operating costs by 22% to $15.39 per barrel of oil equivalent in the nine months ending September 2026. This reduction is attributed to optimization across transportation, logistics, services, and information and communications technology, along with increased production from a largely fixed field cost base.
The company also reported a 14% increase in average daily production to 42,985 barrels, a 96.1% facility uptime, and higher production volumes across crude oil, gas, and natural gas liquids. Oando's CEO, Wale Tinubu, attributed these gains to diligent execution and investment in the upstream portfolio. The company's revenue increased by 9%, reaching N2.78tn, while gross profit rose by 483% to N174.5bn.
Total borrowings decreased by 22% to N2.16tn, and cash generated from operations reached N285bn. Oando is investing N110.7bn in capital expenditure, primarily for drilling activities across its OMLs 60-63 assets, with the goal of adding 16,000 to 20,000 barrels of oil equivalent per day in gross production. The company also operates an electric mobility partnership with the Lagos Metropolitan Area Transport Authority, which has recorded over 212,000 passenger journeys in nine months.
Oando's outlook for the remainder of 2026 includes progress on a seven-well development program, sustained operational reliability, and strengthening shareholders' funds through an impending equity raise.
Written by urgent.news from Punch's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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