Nigeria: Oando plans to double production with Eni acquisition

Nigerian oil and gas producer Oando is aiming to double its production following the imminent acquisition of Eni, projecting a ramp-up to 100,000 boe/d by 2029.

Share:

Oando Double Production Post-Eni

Subscribe for unlimited access to all the latest energy sector news.

Over 150 multisector articles and analyses every week.

For less than €3/week*

*For an annual commitment

*Engagement annuel à seulement 99 € (au lieu de 149 €), offre valable jusqu'au 30/07/2025 minuit.

In a bold move that is redefining the Nigerian energy landscape, Oando is close to finalizing the purchase of allEni ‘s upstream activities in Nigeria. This major acquisition, valued at around $500 million, is seen as a strategic pivot for Oando, which aims to double its current production to 50,000 barrels of oil equivalent per day (boe/d) in the short term, and increase it to 100,000 boe/d by the end of the decade.

Implications of the agreement

The agreement includes four producing oil blocks – OMLs 60, 61, 62 and 63 – which form a JV (joint venture) with the Brass terminal, onshore exploration concessions, and vital energy infrastructure. Eni currently holds a 20% operating stake in this JV, alongside Oando with 20% and the Nigerian National Petroleum Company (NNPC) with 60%. Post-acquisition, Oando’s stake in the JV will increase to 40%.

Growth and expansion strategy

Oando’s expansion strategy, as Operations Manager Alex Irune points out, is based on intensive drilling programs on marginal fields, notably Qua Iboe (OML 13) and Ebendo (OML 56).

“We plan to drill four to five wells on these two fields over the next 18 months, which will significantly increase our production capacity.”

These fields benefit from privileged access to export terminals, facilitating logistics and supporting rapid expansion.

Impact on the industry and responses to challenges

This development comes at a time when local companies, such as Seplat and a consortium led by Nigerian companies, are taking over the onshore assets of the international oil companies (IOCs) that are withdrawing from Africa’s mature basins. This shift towards less carbon-intensive projects and less risky offshore developments raises questions about the ability of these domestic companies to manage major assets and finance new drilling at a critical time for Nigeria’s oil sector.

Regulatory challenges and government approval

Government approvals for such transactions are essential and sometimes complex. Last July, NNPC reported that it had not yet given its approval for the Oando-Eni transaction, which is also backed by an $800 million loan from the African Export-Import Bank. This delay in approvals raises questions about the political will to allow such a transition, although the government generally seems to support this shift towards greater control by local companies.

Oando’s ambition to double and then quadruple production over the next few years could not only transform its own trajectory, but also revitalize Nigeria’s ailing oil industry. With legislative reforms, improved security, and proactive management, Oando is well positioned to make this transition and stimulate the local economy while reducing the incidence of theft and sabotage through greater involvement of indigenous stakeholders.

Vantage Drilling International Ltd. extends the validity of its conditional letter of award until August 29, without changes to the initial terms.
Libya is preparing to host an energy forum in partnership with American companies to boost investment in its oil and gas sectors.
Washington increases pressure on Iran’s oil sector by sanctioning a Greek shipper and its affiliates, accused of facilitating crude exports to Asia despite existing embargoes.
The Bureau of Ocean Energy Management formalizes a strategic environmental review, setting the framework for 30 oil sales in the Gulf of America by 2040, in line with a new federal law and current executive directives.
Amid repeated disruptions on the Druzhba pipeline, attributed to Ukrainian strikes, Hungary has requested U.S. support to secure its oil supply.
Norwegian producer Aker BP raises its oil potential forecast for the Omega Alfa well, part of the Yggdrasil project, with estimated resources reaching up to 134 million barrels of oil equivalent.
Bruno Moretti, current special secretary to the presidency, is in pole position to lead Petrobras’ board of directors after Pietro Mendes’ resignation for a regulatory role.
Next Bridge Hydrocarbons completes a $6 million private debt raise to support its involvement in the Panther project while restructuring part of its existing debt.
Sinopec Shanghai Petrochemical reported a net loss in the first half of 2025, impacted by reduced demand for fuels and chemical products, as well as declining sales volumes.
Zener International Holding takes over Petrogal’s assets in Guinea-Bissau, backed by a $24 million structured financing deal arranged with support from Ecobank and the West African Development Bank.
Petrobras board chairman Pietro Mendes resigned after his appointment to lead the National Petroleum Agency, confirmed by the Senate.
Bahrain has signed an energy concession agreement with EOG Resources and Bapco Energies, reinforcing its national strategy and opening the way to new opportunities in oil and gas exploration.
Talos Energy confirmed the presence of oil in the Daenerys area, located in the Gulf of Mexico, after a successful sub-salt drilling operation completed ahead of schedule.
Thanks to strong operational performance, Ithaca Energy recorded record production in the first half of 2025, supporting improved annual guidance and significant dividend distributions.
A surprise drop in US crude inventories and renewed focus on peace talks in Ukraine are shaping oil market dynamics.
The Druzhba pipeline has resumed flows to Hungary, while recent strikes raise questions about the energy interests at stake within the European Union.
The resumption of Shell’s drilling operations and the advancement of competing projects are unfolding in a context dominated by the availability of FPSOs and deepwater drilling capacity, which dictate industrial sequencing and development costs.
Indonesia Energy Corporation signs a memorandum of understanding with Aguila Energia to identify oil and gas assets in Brazil, marking a first incursion outside its domestic market.
YPF transfers management of seven conventional zones to Terra Ignis, marking a key step in its strategy to refocus on higher-value projects.
Viper Energy, a subsidiary of Diamondback Energy, has completed the acquisition of Sitio Royalties and is raising its production forecast for the third quarter of 2025.

Connectez-vous pour lire cet article

Vous aurez également accès à une sélection de nos meilleurs contenus.

ou

Passez en illimité grâce à notre offre annuelle : 99 $ la 1ère année, puis 199 $ /an.

Consent Preferences