Oando Plc has made history by becoming Nigeria’s first indigenous International Oil Company (IOC) with a valuation of $4 billion, expanding its operations beyond Nigeria to the Sao Tome and Principe Exclusive Economic Zone (EEZ).
This achievement accentuates the economic fortunes of Oando, led by CEO Wale Tinubu, a nephew of President Bola Tinubu, who has driven the company forward in the oil and gas sector for decades.
Recall that MUK TV had earlier reported how the oil company’s market value skyrocketed to N1 trillion from N74 billion in 2023 within Tinubu’s first year in office as president.
Oando, a leader in Africa’s exploration and production industry, has built a strong presence in the upstream sector with significant investments in oil and gas fields.
The company holds interests in over 16 licenses for exploration, development, and production, covering onshore, swamp, and offshore assets.
According to Arise News, Oando’s Certified Professional Reserves Report (CPR) from DeGolyer and MacNaughton, a respected auditor for major companies like Chevron, Shell, and ENI, reveals that the company’s Gross Recoverable 2P reserves and recent NAOC acquisition have driven its valuation to $4 billion before acquisition and legacy debt adjustments.
Despite challenges like Nigeria’s high inflation, the company’s U.S. dollar earnings position it well for future growth.
A source familiar with Oando’s operations noted, “The investment will be phenomenal in Naira terms.”
Oando’s portfolio includes two power plants (Kwale 1 and 2), three large gas plants, and a dedicated gas line to Eleme Petrochemicals, where it has emerged as the main supplier.
With over 200 wells in production, nine flow stations, and its own export terminal at Brass, Oando has become the first indigenous company to achieve the status of a major IOC.
Oando’s stock has also seen impressive growth, with a 159% gain in 2023 and an additional 14% increase in Q1 2024.
The company’s financial turnaround was evident in its 2023 results, with a pre-tax profit of N104.1 billion, compared to a N61.8 billion loss in 2022.
CEO Wale Tinubu said, “Despite persistent pipeline vandalism across the Niger Delta, which continues to dampen crude production, we achieved a profit after tax of N74.7 billion in 2023. This was largely driven by increased trading volumes from our strategic global partnerships and net foreign exchange gains.”
With its recent acquisition of NAOC, Oando is poised for further growth and diversification, with plans to optimize new assets, boost production, and explore clean energy and energy infrastructure.
Wale Tinubu has assured stakeholders that Oando is well-positioned for continued success in the oil and gas industry, with no signs of slowing down.
