The development was disclosed by the company’s Chief Executive Officer, Wale Tinubu, in an interview with Reuters, where he outlined plans to increase output by up to 300 percent through a large-scale drilling campaign.
According to Tinubu, Oando—whose production averaged just over 32,000 barrels of oil equivalent per day in the 2025 fiscal year—is targeting the drilling of up to 100 wells as part of its expansion strategy.
The objective, he explained, is to significantly boost output and reposition the company as a stronger upstream player in a global oil market shaped by supply uncertainties and shifting investment flows.
Tinubu noted that ongoing geopolitical tensions, including the Iran conflict and the Russia-Ukraine war, are reshaping global energy dynamics and influencing investor sentiment.
He argued that while African markets were previously viewed as high-risk by global investors, current instability in other key producing regions is prompting a reassessment, with Africa emerging as a more attractive destination for capital.
According to him, the continent’s relative stability compared to other global hotspots is becoming a key investment consideration.
“We are pushing very, very hard towards getting the financing that we need to do an extensive drilling campaign,” he said, adding that Africa remains comparatively stable in a volatile global environment.
Over the past decade, Oando has raised between $3 billion and $4 billion, largely from European financial institutions. However, Tinubu noted that such funding has declined significantly in recent years as European banks reduce exposure to fossil fuel projects across Africa.
This shift has forced indigenous energy companies to explore alternative financing channels, particularly within Africa. Institutions such as the African Export-Import Bank and the African Finance Corporation have increasingly stepped in to support large-scale energy and infrastructure projects.
A notable example includes the partial financing of a $4 billion syndicated loan for the Dangote Petroleum Refinery, underscoring the growing role of African capital in funding strategic energy assets.
In addition to its domestic operations, Oando has expanded its footprint across Africa, with active interests in Angola and exploratory ambitions in markets such as Ghana and Côte d’Ivoire.
This regional diversification forms part of the company’s broader strategy to strengthen its upstream presence and reduce dependence on a single production base.
Tinubu also warned that ongoing geopolitical instability is likely to remain a defining feature of global energy markets, sustaining long-term interest in Africa’s hydrocarbon resources.
Even in the event of temporary de-escalation in current conflicts, he noted that structural disruptions in global supply chains would continue to influence investment flows and energy security planning.
Oando’s capital-raising plan comes at a time when several major African energy players are accelerating expansion strategies.
Recent reports indicate that the Dangote Group is targeting up to $40 billion in investments over five years to expand its fertiliser and refining operations, reflecting broader ambitions to strengthen domestic production capacity.
The Dangote Group has also increased exports from its refinery operations, including multiple cargoes of petrol and rising urea fertiliser shipments to other African markets.
As global supply chains remain under pressure, Africa’s energy sector is increasingly positioning itself as both a production hub and a strategic alternative to traditional supply regions.
For Oando, the planned $750 million fundraising drive represents not just a production expansion, but a broader bet on Africa’s rising importance in the global energy equation.