In a significant move to bolster its crude oil production and solidify its standing in Nigeria's energy sector, Oando Plc has successfully increased its reserve-based loan (RBL) facility to $375 million. This capital injection, primarily led by the African Export-Import Bank (Afreximbank) and supported by Mercuria Asia Resources PTE Limited, marks a strategic step for the indigenous energy giant.
Bolstering Production Targets with Fresh Capital
The announcement, detailed in a disclosure filed with the Nigerian Exchange (NGX) on June 4, 2025, reveals that Oando Oil Limited, the upstream subsidiary of Oando Plc, is set to leverage this funding to significantly boost its crude oil output. This refinanced facility, which was originally secured in 2019 at $525 million and gradually paid down to $100 million by the end of 2024, now provides the necessary impetus for Oando to pursue ambitious growth targets.
According to the company, this capital infusion will support its goal of achieving 100,000 barrels of oil per day (bopd) and 1.5 billion cubic feet (Bcf) of gas per day by the close of 2029. This long-term vision underscores Oando's commitment to expanding its operational capacity and optimizing its energy production capabilities within the Nigerian landscape.
Building on the NAOC Acquisition Success
This latest financial maneuver comes on the heels of Oando's strategic acquisition of Nigerian Agip Oil Company Limited (NAOC) in 2024. That landmark deal, also backed by Afreximbank, was valued at $783 million and saw Oando successfully acquire NAOC from the Italian energy giant Eni. The acquisition significantly strengthened Oando’s footprint in Nigeria’s oil and gas sector by expanding its operational reach and enhancing its upstream capabilities. Afreximbank played a crucial role in this transaction, providing a $650 million lending facility as part of the overall acquisition package.
The impact of the NAOC acquisition is already evident in Oando’s performance. The company’s annual report for the full year 2024 revealed a 22% increase in crude oil production, with total daily output averaging 23,727 barrels of oil equivalent. This surge in daily output likely contributed to the notable improvements in Oando Plc’s financial performance.
Strong Financial Performance in 2024
Oando Plc's recently published audited financial statements for the year ended December 31, 2024, paint a picture of robust growth. The company reported a pre-tax profit of N383.8 billion, a staggering 272.72% increase compared to the N102.9 billion recorded in 2023. Total revenue for the year also saw a significant surge, reaching N4.08 trillion, up 43.61% from N2.84 trillion in the previous year.
Geographically, international operations were the primary revenue driver, contributing N3.6 trillion, while Nigerian operations accounted for N755.3 billion. In terms of product lines, crude oil remained the dominant revenue source, followed by gas revenue and energy sales. Furthermore, Oando’s total assets experienced substantial growth, increasing by 140.43% to N6.4 trillion, a significant portion of which can be attributed to the full acquisition of NAOC.
This latest refinancing, coupled with Oando's recent acquisition and strong financial results, positions the company for continued growth and greater operational flexibility in the dynamic energy market.