Oando Plc increased its revenue by 20 per cent to N2.1 trillion in the first half (H1) of 2026 after raising average daily production by 16 per cent.

The indigenous energy company strengthened output from its upstream assets while improving facility reliability and lowering production costs.

The company’s unaudited results for the six months ended June 30, 2026, also showed that profit after tax (PAT) rose eight per cent to N68.6 billion, while gross profit surged by 331 per cent to N101 billion.

Operating cash generation climbed to N179.5 billion, reflecting stronger operational performance across its enlarged upstream portfolio.

Production averaged 42,789 barrels of oil equivalent per day (boepd), up from 36,836 boepd recorded in the corresponding period of 2025, supported by a 92 per cent facility uptime compared to 85 per cent a year earlier.

The increase was driven by a combination of new drilling activities, restoration of previously shut-in wells and improved operational efficiency across oil mining leases (OMLs) 60, 61, 62 and 63.

Crude oil production rose 19 per cent to 12,358 barrels per day, gas production increased 14 per cent to 28,497 boepd, while natural gas liquids (NGL) output grew 16 per cent to 1,935 boepd.

The company said the performance reflected lower transport, logistics, service and information technology costs, combined with higher production across a largely fixed operating cost base.

Its trading business also recorded growth during the period, with crude oil trading volumes increasing 2.1 per cent to 13.15 million barrels, driven by expanded crude marketing and offtake programmes as well as increased sourcing from marginal field producers.

Group Chief Executive, Wale Tinubu, said the first half of 2026 represented a major milestone following the integration of one of Africa’s largest upstream acquisitions.

According to him, the company has now begun delivering the operational and financial benefits expected from the enlarged asset base.

“The first half of 2026 marks an important inflexion point in Oando’s journey. Over the past two years, our priority has been to successfully integrate one of the most significant upstream acquisitions in Africa and unlock the full value of our expanded portfolio. The progress achieved during the period demonstrates that we are now delivering the operational and financial outcomes expected from that transformation,” he said.

Tinubu attributed the stronger results to improved asset integrity, higher facility reliability and strengthened security across operating areas, which lifted facility uptime to 92 per cent while reducing production operating costs by 18 per cent to $16.83 per barrel of oil equivalent.

He said the company’s development programme also gathered momentum during the review period with the successful drilling and completion of two land development wells, while another land well is currently being drilled and a second drilling rig has been mobilised to accelerate activities across its operated assets.

According to him, Oando also intensified rig-less well intervention programmes designed to restore production, sustain plateau output and mitigate natural field decline.

The company is continuing an extensive drilling campaign across both its operated and non-operated assets this year. Having recorded early gains across OMLs 60-63, Oando plans to complete a seven-well drilling programme covering Idu T, Samabri A and Ogbanbiri fields.

The programme will be complemented by approximately 100 rigless well intervention activities across its portfolio this year to increase production, sustain output and offset natural decline.

Looking ahead, Tinubu said the company’s immediate priority remains achieving production of about 50,000 boepd in 2026 before pursuing a medium-term target of approximately 100,000 boepd.

He disclosed that Oando has identified an inventory of 62 development wells supported by 55 planned well interventions to underpin future production growth.