Oando raises oil manufacturing to 30,000bpd after Agip acquisition

Oando Plc says its oil manufacturing has grown by 40 per cent because it acquired the Nigerian Agip Oil Firm.

Oando, in a press release asserting its unaudited report for the 9 months ended September 30, 2024, revealed that it elevated manufacturing from 22,000 barrels of oil equal per day to 30,675 boed after the NAOC deal was ratified in August.

In line with the Group Chief Government of Oando, Wale Tinubu, quick-win methods had been deployed after the acquisition to reinforce operational efficiencies.

He mentioned, “Because the acquisition of Nigerian Agip Oil Firm, now we have elevated manufacturing by 40 per cent, rising from 22,000 boepd pre-acquisition to 30,675 boepd presently. This progress has been pushed by the deployment of quick-win methods which have enhanced operational efficiencies and demonstrated the transformative potential of the acquisition.

“The mixing course of is advancing easily, and our rapid focus stays on executing strategic initiatives to maximise the worth of our expanded portfolio. With this stronger basis and a transparent roadmap for development, we’re assured in our capacity to ship long-term, sustainable worth to all stakeholders. “

In August, Oando introduced the profitable full acquisition of 100 per cent of the shareholding curiosity within the Nigerian Agip Oil Firm from the Italian vitality firm, Eni, for a complete consideration of $783m, describing the acquisition as a major milestone in its long-term technique to develop its upstream operations and strengthen its place within the Nigerian oil and fuel sector.

The transaction elevated Oando’s present taking part pursuits in OMLs 60, 61, 62, and 63 from 20 per cent to 40 per cent.

It will increase Oando’s possession stake in all NEPL/NAOC/OOL Joint Enterprise property and infrastructure, which embody 40 found oil and fuel fields, of which 24 had been producing as of August, roughly 40 recognized prospects and leads, 12 manufacturing stations, roughly 1,490 km of pipelines, three fuel processing vegetation, the Brass River Oil Terminal, the Kwale-Okpai phases 1 & 2 energy vegetation (with a complete nameplate capability of 960 MW), and related infrastructure.

Oando added that primarily based on 2022 reserves estimates, “Oando’s whole reserves stand at 505.6 MMboe, and the transaction will ship a 98 per cent improve of 493.6 MMboe, bringing the overall reserves to 1 billion barrels of equal.”

Nonetheless, in its newest report, the vitality agency acknowledged that crude manufacturing dipped within the first 9 months of 2024, blaming it on oil thieves and vandals.

Through the interval, common manufacturing was mentioned to face at 20,560 barrels of oil equal per day, in comparison with 21,529 boe/day in 2023.

“In 2024, manufacturing consisted of 6,525 barrels/day of crude oil, 254 bbl/day of pure fuel liquids, and 13,782 boe/day of pure fuel. The manufacturing lower was a results of elevated shut-in wells for repairs from sabotage and theft-related actions, “the assertion learn.

In the meantime, through the 9 months, the group disclosed that it incurred $12.7m in capital expenditure associated to the event of oil and fuel property and exploration and analysis actions, in comparison with $47.4m within the 9 months.

It famous that its efficiency for the interval mirrored its resilience and unwavering concentrate on delivering worth amidst a difficult working surroundings.

“We achieved a 36 per cent improve in income to N3.2tn and a revenue after tax of N76.3bn, regardless of ongoing pipeline vandalism, sabotage, theft within the Niger Delta, and overseas change volatility,” the assertion learn partly.

The corporate added that the 36 per cent improve in income was impacted by change charge translations and better crude oil volumes lifted, offset by decrease buying and selling volumes, diminished pure fuel and NGL volumes, and decrease realised sale costs for pure fuel and NGLs.