Oando PLC, Africa’s main built-in vitality firm listed on each the Nigerian Alternate Group (NGX) and Johannesburg Inventory Alternate (JSE), posted sturdy Audited Full Yr (FY) 2024 {financial} outcomes with a 44% improve in income to N4.1 trillion in comparison with N2.9 trillion in FY 2023.
Within the upstream, Oando’s production witnessed a 3% improve to 23,727 boepd; made up of crude oil production, which elevated by 27% to 7,558 bopd, whereas NGL production and gasoline decreased respectively by 35% to 156 bpd, and 5% to 16,013 boepd.
The corporate’s 2P reserves grew 95% year-on-year to 983 MMboe (2023: 505 MMboe), representing a 188% reserves substitute ratio and underscoring the power of the corporate’s upstream portfolio post-acquisition.
The corporate additionally reported a sustained operational uptime of 86%, supporting off-take reliability and lowering deferred production.
Equally, different indigenous gamers have additionally reported vital income development following the latest wave of Worldwide Oil Firm divestments. Seplat recorded a income of N1.65 trillion, representing a 137% improve from 2023, whereas Aradel posted N581.2 billion in income, a 162% improve in comparison with the earlier 12 months.
Talking on the corporate’s upstream efficiency, Group Chief Government, Oando PLC, Wale Tinubu mentioned, “2024 was a defining 12 months for Oando, with the profitable acquisition and integration of NAOC marking the fruits of a decade-long strategic development journey which has considerably deepened our upstream portfolio, leading to our assumption of operatorship of the OML 60–63 sequence and the doubling of our working curiosity within the property from 20% to 40%, in addition to our 2P reserves from 500 million barrels of oil equal to 1 billion barrels.”
Within the downstream, Oando’s buying and selling subsidiary reported that it bought 20.7 million barrels of crude oil in 2024; a 37% decline from 2023 as a result of structural modifications within the Nigerian oil market. Moreover, refined product volumes declined by 64% to simply over 599 kMT, as a result of weakened home demand, pushed by the difficult macroeconomic in-country.
Projections for international oil costs and demand in 2025 stay unsure as a result of persistent macroeconomic and commerce coverage uncertainties. JP Morgan pegs Brent to peak at $66/bbl in 2025 and $58/bbl in 2026 whereas the U.S. Power Info Administration’s (EIA) predictions venture Brent crude oil costs to fall from a median of $81 per barrel (b) in 2024 to $74/b in 2025 and $66/b in 2026 citing a rise in international production coupled with slower international demand development.
Inside its renewable vitality enterprise, the corporate continued to advance its clear vitality agenda, recording measurable progress throughout a number of verticals. By the top of 2024, the electrical mass transit programme had coated 121,145 km, transported over 205,000 passengers, displacing 163,546 kg of CO₂ emissions and saving greater than 60,000 litres of diesel.
Different notable achievements embrace signing MoUs for wind tasks with Cross River and Edo State in addition to launching a geothermal feasibility research in collaboration with NNPC, exploring the conversion of mature wells to renewable energy property.
As the corporate continues to combine its expanded portfolio following its most up-to-date strategic acquisition, present projections present it’s gone into 2025 with robust momentum and clear ambition. Tinubu remarked ‘Wanting forward, 2025 might be our 12 months of execution. Our key priorities shall embrace unlocking synergies from the acquisition, addressing above-ground safety dangers by the implementation of a revamped safety framework aimed toward curbing the persistent theft of oil, value optimization, steadiness sheet restructuring, enhancing operational effectivity, and leveraging expertise to enhance productiveness throughout our operations.
In our bid to ramp up production in the direction of reaching our goal of 100,000 bopd and 1.5 tcf of gasoline by 2029, we will pursue a dual-track strategy of rig-less interventions and effectively workovers, complemented by an aggressive drilling program. We’re excited by the alternatives that lie forward and stay dedicated to delivering enhanced shareholder returns, shared prosperity, and sustaining our place as a number one participant in Africa’s evolving vitality panorama.’
The printed audited FY 2024 outcomes additionally embrace roughly 4 months of contribution from Nigerian Agip Oil Firm (NAOC), following the completion of the acquisition on August 22, 2024. Following this, the corporate has set a production steerage of 30,000–40,000 barrels of oil equal per day (boepd) in its 2025 outlook. This aligns with its post-acquisition optimisation plans to maximise portfolio worth and helps its four-year goal of reaching 100,000 barrels per day.
It’s evident that native gamers, notably those who have change into operators following the latest IOC divestments, are more and more well-positioned to drive the way forward for the Nigerian vitality sector. These indigenous corporations possess distinctive insights and contextual expertise that allow them to extra successfully handle onshore and shallow water property.
This shift is predicted to generate a ripple impact throughout the financial system by growing native employment, enhancing capability growth, and bettering authorities income by taxes retained inside the nation, income that was beforehand repatriated to the house nations of the Worldwide Oil Firms (IOCs).
