Oando Becomes First Nigerian IOC, Valuation Hits $4bn

Oando Plc has emerged as Nigeria’s first indigenous International Oil Company (IOC), solidifying its position as a key player in Africa’s oil and gas industry.

With operations now extending beyond Nigeria’s borders into the São Tomé and Príncipe Exclusive Economic Zone (EEZ), Oando’s recent achievements reflect decades of strategic investments and a relentless drive for growth.

Led by its Chief Executive Officer (CEO), Mr. Wale Tinubu, Oando, Oando has built a robust portfolio of oil and gas assets. These include interests in over 16 licenses spanning onshore, offshore, and swamp territories, making the company a major contributor to Africa’s energy supply.

The company’s Certified Professional Reserves Report (CPR), audited by D&M, highlights Oando’s gross recoverable 2P reserves and net present value (NPV) at $2 billion for its original 20 percent Certificate of Proficiency stake, alongside its new 20 percent Nigerian Agip Oil Company Ltd (NAOC Ltd) stake.

This development has driven Oando’s total valuation to $4 billion, with a net asset value standing at approximately $3 billion after debt deductions.

Oando’s latest expansion into international markets and its acquisition of NAOC Ltd have transformed the company’s financial outlook. In 2023, Oando recorded a pre-tax profit of ₦104.1 billion, a sharp contrast to the ₦61.8 billion loss recorded in 2022. This turnaround has bolstered investor confidence, with the company’s stock delivering a 159 percent year-to-date gain in 2023, followed by a 14 percent increase in Q1 2024. The federal government’s approval of Oando’s 100 percent acquisition of NAOC Ltd sent its share price soaring to a five-year high of ₦47.85, further establishing its dominance on the Nigerian Exchange (NGX).

Despite ongoing challenges such as pipeline vandalism in the Niger Delta, Oando’s production capabilities remain strong. The company reported peak production of 100,000 barrels of oil per day and 1.5 billion cubic feet of gas last year.

In addition, Oando operates two power plants with a combined capacity of 500MW and has developed dedicated gas infrastructure to serve critical industrial sectors, including Eleme Petrochemicals.

Mr. Tinubu emphasised that Oando’s mission goes beyond profits. The company is focused on leaving a lasting legacy by building a world-class enterprise that opens doors for other Nigerian companies. As Oando continues to grow its reserves and acquire near-term producing assets, it is also setting its sights on diversification into clean energy and energy infrastructure.

This expansion marks a new era for Oando, as it leads the charge in Nigeria’s oil and gas sector. With a strong balance sheet, strategic investments, and a clear vision for the future, the company is well-positioned to remain a dominant force in both African and global energy markets.