Nigerian energy firm Oando plans to raise up to US$750 million this year to fund an ambitious drilling campaign aimed at sharply boosting production, as rising geopolitical tensions fuel investor interest in West African oil.
Chief executive Wale Tinubu said the company is seeking financing to support a programme that could increase output by as much as 300 percent, including drilling up to 100 wells.
“We are pushing very, very hard towards getting the financing that we need to do an extensive drilling campaign,” Tinubu said.
The push comes as global oil markets react to disruptions linked to tensions involving Iran, which have driven up energy prices and renewed interest in alternative supply sources.
Tinubu said investor sentiment towards African oil producers has improved in recent years, partly due to instability in other major producing regions.
“Africa is very, very peaceful compared to these regions,” he said, noting that geopolitical uncertainty has shifted attention towards West Africa’s reserves.
Nigeria, Africa’s largest oil producer, currently pumps around 1.6 million barrels per day of crude and condensate.
Oando’s own production averaged just over 32,000 barrels of oil equivalent per day in 2025, with the planned expansion focused on assets acquired from international oil majors such as ConocoPhillips and Eni.
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The company is among a growing group of indigenous firms that have taken over onshore and shallow-water assets divested by global energy companies in recent years.
Tinubu said demand patterns are already shifting, with more Nigerian crude being shipped to Asia to replace supplies disrupted by constraints in Gulf exports.
However, securing financing remains a challenge. European banks have largely withdrawn from funding hydrocarbon projects in Africa, citing climate concerns, forcing companies like Oando to seek alternative sources.
Tinubu said the firm is increasingly turning to institutions such as the African Export-Import Bank and the African Finance Corporation, as well as global commodity traders including Vitol, Trafigura, Glencore and Mercuria.
He added that interest from Gulf-based lenders, private equity firms and hedge funds is growing, although more long-term capital is still needed to support large-scale energy projects.
Oando has raised between $3 billion and $4 billion over the past decade, primarily to finance acquisitions, and is also pursuing a broader capital-raising programme of up to $1.5 billion.
Beyond Nigeria, the company is expanding its footprint in Africa, including a recent move into Angola, while exploring opportunities in Ghana and Ivory Coast.
Tinubu said Nigeria’s recent policy reforms, including changes to its hydrocarbon laws and the removal of costly fuel subsidies, have improved the investment climate.
He also pointed to the launch of the Dangote Refinery as a sign of the country’s growing capacity to process its own crude, reducing reliance on imports.
While Oando was once a major fuel importer, Tinubu said Nigeria now only requires imports in limited circumstances, such as during refinery maintenance or price testing.
Looking ahead, the company aims to expand into gas-based industries such as petrochemicals and fertilisers, seeking to add more value to domestic resources.
Analysts say Oando’s expansion plans reflect a broader shift in Africa’s energy sector, where local firms are playing an increasingly prominent role amid changing global investment patterns and evolving geopolitical dynamics.
