LONDON – Nigerian energy company Oando plans to raise up to $750 million this year for a drilling campaign that could increase output by 300%, capitalizing on increased investment appetite for West African producers amid turmoil linked to the Iran war, CEO Wale Tinubu told Reuters.
The oil and gas company is one of the few local companies to acquire assets as oil majors exit Nigeria’s onshore operations over the past decade. This year, Tinubu said higher energy prices should open up more sources of financing for producers in the region.
“We are working very hard to raise the necessary financing to carry out large-scale drilling operations,” Tinubu told Reuters.
Nigeria is Africa’s largest oil producer, producing approximately 1.6 million barrels of crude oil and condensate per day.
Oando, whose production in 2025 averaged just over 32,000 barrels of oil equivalent per day, aims to drill as many as 100 wells to increase production, particularly from assets purchased from Western giants ConocoPhillips and Eni.
The company had previously struggled to secure funding for drilling due to investor concerns that Africa was a “dangerous environment,” but the Iran war and Russia’s 2022 invasion of Ukraine changed that view, Tinubu said.
“Compared to these regions, Africa is very, very peaceful,” he says.
Already, Tinubu said demand for Nigerian crude oil was changing, with more cargo heading to Asia to replace Gulf oil trapped by the closure of the Strait of Hormuz.
Financial pressure from Europe
Oando has raised between $3 billion and $4 billion over the past decade, much of it from European banks, the CEO said, with much of it going toward acquisitions.
He said European banks are now almost completely withdrawing from African hydrocarbons due to concerns about climate change, pushing Oando to financiers such as the African Export-Import Bank and African Finance Corporation, as well as oil trading companies such as Vitol, Trafigura, Glencore and Mercuria.
But he added that Africa still needs “substantial long-term funding.”
He said more Gulf banks are interested in African hydrocarbon projects and more political parties are joining syndicates, while private equity funds and hedge funds are also active in financing African energy.
Oando recently expanded into Angola, and Tinubu said it was exploring opportunities in Ghana and Ivory Coast. He added that Africa should pool domestically available funds, such as through pension funds, to fund large capital projects.
The geopolitical turmoil will have “long-term strategic implications for global energy security,” he said, adding that he would remain focused on West Africa’s reserves.
“Even if the ceasefire continues, which I hope it will, the fact remains that there will be consistent disruption,” he said.
Gasoline export, business opportunity
Tinubu said Nigeria was in a good position to raise funds after a landmark hydrocarbons law review in 2021 and reforms to the currency and expensive petrol subsidies by his uncle, current President Bola Tinubu.
Tinubu said the new 650,000 barrel per day Dangote refinery on the outskirts of Lagos highlighted the value of Nigeria’s resources.
Tinubu said his company was once one of the country’s largest fuel importers, but imports are now only needed for pricing testing and refinery maintenance.
In the long term, Tinubu wants to use some of Oando’s unique gas production for petrochemicals and fertilizers to further increase value addition to Nigeria’s resources.
The company was working to “streamline” its finances to avoid further delays in submitting audited reports to the Nigerian Exchange following deadline extensions in recent years.
In August, Oando’s board of directors signed a proposal to launch a multi-instrument issuance program of up to $1.5 billion.
