Oando Plc has reduced its production operating costs by 22 per cent to $15.39 per barrel of oil equivalent (boe) in the first nine months of 2026, while average daily production increased by 14 per cent to 42,985 barrels of oil equivalent per day (boepd).
The company disclosed this in its unaudited nine-month financial results, attributing the cost reduction to improved efficiency in transportation, logistics, services and technology, alongside higher production.
Oando also reported that facility uptime improved to 96.1 per cent from 85 per cent recorded in the corresponding period of 2025.
Commenting on the performance, Group Chief Executive, Wale Tinubu, said increased investments and improved operational execution had strengthened production efficiency and reliability across the company’s upstream assets.
Crude oil production rose by 12 per cent to 12,193 barrels per day, while gas output increased by 13 per cent to 28,689 boepd. Natural gas liquids production also grew by 53 per cent to 2,103 barrels per day.
Read Also: seplat-uncovers-five-oil-gas-reservoirs-plans-new-exploration-well-in-2027
The improved output supported higher sales, with crude oil sales increasing by 43 per cent to 3.97 million barrels and gas sales rising by five per cent to 34.01 billion standard cubic feet.
Total exploration and production sales volumes climbed by 21 per cent to 10.21 million barrels of oil equivalent.
Financially, revenue increased by nine per cent to N2.78tn, while gross profit surged by 483 per cent to N174.5bn from N29.8bn in the corresponding period of 2025. The company also recorded an operating profit of N159.7bn, reversing an operating loss of N109.7bn a year earlier.
Oando invested N110.7bn in capital expenditure during the period, largely on drilling activities across its OMLs 60–63 assets. It said its seven-well drilling programme was progressing, with completed wells already brought on stream.
The company expects the drilling campaign to add between 16,000 and 20,000 boepd in gross production, supporting its medium-term target of approximately 100,000 boepd within four to five years.
Meanwhile, its electric mobility partnership with the Lagos Metropolitan Area Transport Authority recorded more than 212,000 passenger journeys during the period, with average capacity utilisation of 73 per cent.
Oando retained its focus on upstream expansion, operational efficiency and improved shareholder returns, projecting full-year 2026 production of between 40,000 and 45,000 boepd and capital expenditure of $90m to $100m.
