Driving production growth through indigenous control

Nigeria

Ainojie ‘Alex’ Irune, executive director of Oando PLC and managing director of subsidiary Oando Energy Resources (OER), talks to The Energy Year about how acquiring operatorship in the Oando/NEPL JV is reshaping production growth and what the shift to indigenous control means for Nigeria’s oil and gas future. OER is an indigenous upstream company with operations in Nigeria, São Tomé and Angola.

Oando reported a 59% year-on-year increase in production and NGN 2.5 trillion (USD 1.7205 billion) in revenue for the first nine months of 2025. What were the key drivers behind this result?
A major contributor was our acquisition, which increased our stake in what was formerly the NAOC/Oando/NEPL JV from 20% to 40%. This had a direct impact on revenues and production output. When we took over the asset, production was low, but within three months, we had doubled output. This outcome was driven by the alignment of our operational capabilities with our strategic ambitions and the successful revitalisation of the asset.
We preserved the asset’s value and performance profile while benefiting from one-off gains, including write-backs from other operations. Our focus now is firmly on scaling production. Supported by a more secure operating environment, we are deploying capital into the asset and running a cost-focused, high-performance operation, with safety and asset integrity as non-negotiable priorities.

How will the NAOC acquisition help Oando reach its targets of 100,000 bopd and 42.5 mcm (1.5 bcf) per day?
The asset’s gas-dominant profile, complemented by substantial condensate volumes, provides a solid foundation for delivering our targeted production growth. We know there are more than 1 billion barrels in the subsurface. The key is extracting them efficiently and at the right cost.
What makes this transformative is that we are now operators. We now have both the strategic insight and the operational authority to chart the asset’s future. That combination, vision paired with direct control, is what will enable us to translate long-term aspirations into disciplined execution and sustainable value creation.

What does this shift mean for indigenous players in Nigeria’s oil and gas sector?
We’ve seen a tidal shift: the Renaissance-Shell, Seplat–ExxonMobil, and Oando-Eni transactions show a move from IOC-dominated production to significant indigenous participation. It’s overdue, and it’s transformative. Oando’s entire workforce is Nigerian, including operatorship of complex assets once managed by global firms. It is a clear indicator of the maturity and strong technical and managerial capabilities developed within the country’s oil and gas sector.
When Nigerians control Nigerian resources, the objectives extend beyond commercial returns to a deeper sense of national purpose, and that drives a deeper commitment to deliver. Local ownership also retains more value in-country, creates jobs, and aligns interests between companies and communities.
We also have a refreshed NNPCL and a regulator that sees itself as a business enabler. That’s a major change. When you align national targets with empowered local players, you create the environment needed to move towards the national target of 2.5 million bopd and beyond.

As you expand and acquire new assets, what role does sustainability and decarbonisation play in your strategy?
We recognised four to five years ago that the world was at an inflection point. The future is not about no carbon – it’s about net zero. The only way to balance fossil fuel use with environmental responsibility is through a diversified energy mix.
Africa has abundant renewable potential, solar, wind, geothermal, etc., and must learn to harness it. However, Africa’s energy transition must be designed around the realities of how our people live, work, and access energy. It should prioritise emissions reduction and new technologies, but not at the expense of jobs, affordability, industrialisation, and the basic energy needs of our growing population.
That’s why we created Oando Clean Energy. In the past five years, it has launched projects in electric mobility, mass transit, geothermal, wind, and waste-to-energy. Some of that technology is being integrated into our upstream operations, like using geothermal heat to replace diesel.
For us, sustainability is not a buzzword. It’s about building local capacity in clean energy while continuing to produce oil and gas efficiently. Gas is uniquely positioned to drive Africa’s industrialisation. We see ourselves as leaders in both areas.

You’ve now entered Angola. What does that say about Oando’s regional ambitions?
Oando has never accepted geographic boundaries. We’re Nigerian, but we’ve always had a continental outlook. We must view oil- and gas-producing countries in Africa as a sort of fulcrum for developing the continent. Angola is a prolific basin that continues to attract top-tier players. We see it as a smart fit for our long-term portfolio strategy.
The asset, awarded to Oando by the Angolan National Oil, Gas and Biofuels Agency (ANPG), is at the exploratory stage, and the company will lead the development of the asset alongside Effimax and Sonangol as co-venturers.
While subsurface evaluation is the immediate priority, this milestone reflects our broader ambition to build a pan-African IOC. With growing presence in Nigeria, São Tomé, and now Angola, we’re building a scalable platform for long-term value creation.

What are your key priorities for 2026?
2026 is an execution year. We’ve taken time to stabilise our new assets, align internally and with partners, and secure the financing to move forward. Now it’s about delivery.
We’ll continue to drive costs down and production up. Since completing the acquisition 12 months ago, we have been deeply focused on this foundational work. We have been deliberately investing in our people, systems, and governance to ensure the organisation is fully equipped for its next growth phase.
Ultimately, our focus is on demonstrating that indigenous operators can manage large-scale assets with excellence, resilience, and discipline. For us, 2026 will be a year of focused execution, dedicated to fully optimising the asset and delivering the value we have committed to our shareholders and stakeholders.

Read our latest insights on:

• Angola
• Nigeria