Nigerian indigenous energy company, Oando Plc, has reported a 22 per cent reduction in its oil production operating costs, alongside a 14 per cent increase in average daily production during the first nine months of 2026.
According to the company’s unaudited financial results for the nine months ending September 2026, production costs declined to $15.39 per barrel of oil equivalent, compared with $19.67 recorded during the corresponding period in 2025.
Oando’s average daily production also increased to 42,985 barrels of oil equivalent per day, up from 37,614 barrels recorded a year earlier.
The company attributed the improved performance to operational efficiency, increased production and optimisation of transportation, logistics and other operational services.
Commenting on the development, Oando Group Chief Executive, Wale Tinubu, said the company’s investment drive was delivering significant improvements across its upstream operations.
“Our performance in the first nine months of 2026 demonstrates how diligent execution under our operatorship, supported by our renewed investment drive, is delivering greater efficiency, improved reliability, lower unit costs and ultimately higher production across our expanded upstream portfolio,” Tinubu stated.
The company also reported a 96.1 per cent facility uptime, compared with 85 per cent in the same period of 2025, indicating improved reliability across its production infrastructure.
Meanwhile, Oando disclosed that its ongoing seven-well drilling programme is expected to contribute an additional 16,000 to 20,000 barrels of oil equivalent per day in gross production upon completion.
The development highlights the growing contribution of indigenous energy companies to Nigeria’s upstream petroleum industry, particularly as the country seeks to increase production, attract investment and strengthen its position in the global oil and gas market.
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