Oando Plans $750M Drilling Campaign to Boost Output

Oando PLC, led by CEO Wale Tinubu, is set to raise $750 million for an extensive drilling campaign aimed at increasing its oil output by 300%. The company, which currently produces an average of 32,000 barrels of oil equivalent per day, aims to drill 100 wells by fiscal 2025.

This initiative comes as Oando seeks to capitalize on improved investor appetite in West Africa's oil production, particularly amidst geopolitical tensions linked to the Iran war and the ongoing impacts of Russia's invasion of Ukraine. Tinubu emphasized the need for financing to support this drilling campaign, especially as major oil companies have exited the Nigerian onshore market over the past decade.

Oando's output currently stands at approximately 1.6 million barrels per day, and the company is also exploring opportunities in Angola, Ghana, and the Ivory Coast. The funding will be sourced from various financial institutions, including the African Export-Import Bank and private equity funds.