Oando Plc has reported a 14 per cent increase in average daily production to 42,985 barrels of oil equivalent per day in the first nine months of 2026, driven by improved output across its crude oil, gas and natural gas liquids operations.
The company disclosed this in its unaudited financial results for the nine months ended September 30, 2026, released over the weekend.
The latest figure represents an increase from the 37,614 barrels of oil equivalent per day recorded during the corresponding period of 2025.
According to the results, crude oil production increased by 12 per cent to 12,193 barrels per day, while gas production rose by 13 per cent to 28,689 barrels of oil equivalent per day.
Natural gas liquids production recorded the highest growth, rising by 53 per cent to 2,103 barrels per day.
The Group Chief Executive Officer of Oando, Wale Tinubu, attributed the improvement to increased investment, operational efficiency and better performance across the company’s upstream assets.
“Our performance in the first nine months of 2026 demonstrates how diligent execution under our operatorship, supported by our renewed investment drive, is delivering greater efficiency, improved reliability, lower unit costs and ultimately higher production across our expanded upstream portfolio,” he said.
The company also reported an improvement in facility uptime to 96.1 per cent from 85 per cent in the corresponding period of 2025.
It said crude oil liftings increased by 43 per cent to 3.97 million barrels, while natural gas sales rose by five per cent to 34.01 billion standard cubic feet.
Sales of natural gas liquids also increased by 90 per cent to 570,000 barrels, pushing total exploration and production sales volumes up by 21 per cent to 10.21 million barrels of oil equivalent.
Oando said its production operating costs declined by 22 per cent to $15.39 per barrel of oil equivalent following cost-cutting measures across transportation, logistics, services and information technology.
The company further reported zero fatalities and zero lost-time injuries during the period, despite recording approximately 14.9 million hours worked, representing a 55 per cent year-on-year increase.
Drilling programme to boost production
On its expansion plans, Oando said its seven-well drilling programme for 2026 was progressing across its operated assets.
It disclosed that two wells, Idu 6ST and Idu 15, had been completed and brought on stream, while workovers at Samabri 4T and Samabri 7T had also been completed.
Drilling is ongoing at Idu T and Samabri A50, while the final well, Ogbainbiri, is scheduled to commence drilling in December.
The company expects the programme to add between 16,000 and 20,000 barrels of oil equivalent per day in gross production upon completion.
It said the additional output would help sustain production levels and offset the natural decline in its oilfields.
The drilling campaign is also expected to support the company’s medium-term target of producing approximately 100,000 barrels of oil equivalent per day within the next four to five years.
Tinubu said the company would focus on completing the drilling programme and maintaining operational efficiency in the final quarter of the year.
“For the remainder of 2026, our priorities are to progress the seven-well development programme, sustain operational reliability and strengthen shareholders’ funds through our impending equity raise,” he said.
Oando also revised its full-year production guidance to between 40,000 and 45,000 barrels of oil equivalent per day.
It projected capital expenditure of between $90m and $100m, largely for upstream operations.
The company said it invested N110.7bn in capital expenditure during the nine-month period, with a significant portion directed towards drilling activities across its Oil Mining Leases 60 to 63 assets.
Financially, Oando recorded a nine per cent increase in revenue to N2.78tn during the period.
Its gross profit rose significantly by 483 per cent to N174.5bn, compared with N29.8bn recorded in the corresponding period of 2025.
The company also returned to operating profitability, posting N159.7bn operating profit against an operating loss of N109.7bn in the previous year.
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