Nigerian oil producer Oando Energy is experiencing a rise in revenue as buyers look beyond the Gulf, according to comments made by Group Chief Executive Wale Tinubu. Speaking on the sidelines of the Africa CEO Forum in Kigali, Tinubu said the Iran conflict has undermined the Gulf's standing as a reliably safe place to operate, prompting customers to reconsider supply sources.
Tinubu said disruptions near the Strait of Hormuz have eroded the premium that producers in the Middle East enjoyed for operating in what was perceived as a stable hydrocarbon-producing environment. That shift, he said, is contributing to stronger interest in Nigerian output from markets in Europe and Asia.
Oando currently operates oil and gas facilities in Nigeria's Niger Delta and reported average production of 32,500 barrels per day in 2025. In response to heightened demand, the company intends to drill seven new wells before the end of the year, a program Tinubu says will boost output by about 10,000 barrels per day.
On pricing, Tinubu projected that oil prices will hold in the $70 to $80 per barrel range even after hostilities end, reasoning that it will take time for the suppliers affected by the conflict to fully restore lost production.
To fund its expansion and planned acquisitions, Oando aims to raise up to $750 million over the remainder of 2026 through a combination of debt and some equity, Tinubu said. The company is also pursuing growth beyond Nigeria: it has signed a production-sharing contract in Angola for an onshore block in the Kwanza Basin, and remains interested in assets across West Africa and potentially as far afield as Guyana and Suriname.
Operational response and regional strategy
Oando's planned drilling program and its international contract activity reflect a dual approach: increasing short-term domestic supply while building a broader geographic footprint. The company’s moves aim to capture buyers seeking alternatives to Gulf crude amid concerns about the security and reliability of Middle Eastern production.
Market outlook noted by management
Management’s outlook assumes a multi-month runway before affected producers can restore output fully, a dynamic they expect will support elevated price levels in the near to medium term. The company’s financing plan for 2026 is intended to back the accelerated drilling program and any acquisition opportunities that arise.
Questions about the timing of supply restoration, the execution of the planned financing, and the pace of Oando’s international expansion remain relevant to how the company’s revenue and production profile will evolve.