Oando is Nigeria’s leading indigenous energy group with operations spanning upstream exploration and production, trading and clean energy. Listed on both the Nigerian Exchange and the Johannesburg Stock Exchange, the company has a market capitalisation of approximately $490m and an ambition to reach approximately 100,000  barrels of oil per day and 1.5bn cubic feet of gas per day gross production by 2030.

While global investors often overlook African energy markets, Oando is quietly executing one of the most compelling turnaround stories in the sector.

There are four key reasons why Oando represents an exciting investment case.

1. The NAOC acquisition has been transformational.

Production growth is accelerating following the transformational NAOC acquisition in 2024, which significantly strengthened the company’s position in Nigeria’s upstream sector. The transaction doubled Oando’s interest in the OML 60–63 joint venture to 40% and granted operatorship of these prolific assets. Operator status has enhanced execution flexibility, enabling improved uptime, targeted infrastructure upgrades and a more active development approach. As a result, production from these licences averaged 40,077 barrels of oil equivalent per day in the first half of 2026, up from 33,947 in the prior year. The group production averaged 42,789 barrels of oil equivalent per day for H126, representing 16% year-on-year growth across crude oil, gas and natural gas liquids. Beyond immediate production gains, the acquisition also materially expanded Oando’s asset and infrastructure footprint, including 52 discovered oil and gas fields, production and processing facilities, an oil terminal and power plants, while boosting total reserves to approximately one billion barrels of oil equivalent. The company is positioned for sustained production growth through its multi-year development programme. The goal is to reach approximately 100,000 barrels of oil per day and 1.5bn cubic feet of gas per day gross production by 2030.

2. Half-year financial performance demonstrated resilience.

Despite market headwinds, Oando delivered a resilient financial performance in the first half of 2026.

The company’s strong cash flow performance during the year was the main highlight of the results. The company generated positive net cash flow from operations of $80m, supported by stronger upstream contributions and tighter working capital management, with cash and cash equivalents more than doubling to $396m at period end. At the same time, capital expenditure increased significantly to $81m, with 2026 guidance between $90m and $100m, underscoring the company’s commitment to upstream development and facility integrity.

3. Oando is selectively diversifying across the energy value chain.

Beyond upstream, Oando’s trading division increased activity in crude oil cargo and is expanding into gas and metals trading. The clean energy segment continues to advance selected initiatives in electric mobility and solar manufacturing. Meanwhile, the mining division continues to advance a diversified portfolio across tin, lithium, gold and bitumen, with a focus on progressing priority assets towards commercialisation, including through strategic state-backed partnerships. The company recently expanded its African upstream portfolio with a successful bid for Block KON 13 in Angola, securing a 45% participating interest and operatorship. The asset is strategically located in the prolific Kwanza onshore basin, which holds significant exploration potential.

4. The balance sheet is being restructured to unlock long-term equity value.

Oando is executing a comprehensive capital restructuring programme aimed at resolving legacy balance sheet constraints, improving cash-flow resilience and restoring flexibility for growth and capital market access. The focus is on simplifying the capital structure, extending maturities and aligning debt service with the cash generating profile of the enlarged asset base; allowing management greater scope to direct capital towards the highest return assets as production scales towards the 2030 targets.

Oando represents a differentiated opportunity: an indigenous African energy champion with increasing scale, strengthening operational momentum, a transformed asset base and a clear pathway to value creation. With operatorship now secured across core assets, Oando has greater control over development pace, capital allocation and production optimisation. As delivery milestones are met and balance-sheet restructuring progresses, this dynamic suggests potential scope for valuation normalisation over the medium term. For investors seeking exposure to Africa’s evolving energy landscape – anchored in cash-generative hydrocarbons and complemented by selective transition opportunities – Oando warrants closer attention.

Published 26 August 2026