Stronger operational efficiency also helped restore the group to operating profitability.
The indigenous energy company, in its unaudited results for the nine months ended September 30, 2026, reported an average daily production of 42,985 barrels of oil equivalent per day (boepd), up 14 per cent from 37,614 boepd in the corresponding period of 2025.
Its operating performance recorded a significant turnaround, with operating profit reaching ₦159.7 billion, compared with an operating loss of ₦109.7 billion a year earlier.
Gross profit also rose sharply by 483 per cent to ₦174.5 billion from ₦29.8 billion, reflecting higher production volumes, improved facility reliability and lower operating costs.
The results point to a stronger earnings position for the group as it expands output from its upstream assets and pursues a drilling programme intended to raise production capacity over the medium term.
Higher crude liftings, gas sales drive revenue
Oando’s production growth was supported by improved output across its crude oil, gas and NGL operations.
Crude oil production increased 12 per cent to 12,193 barrels per day, while gas production rose 13 per cent to 28,689 boepd.
NGL production recorded the strongest growth, climbing 53 per cent to 2,103 barrels per day.
The increase in output translated into higher sales volumes across the group’s exploration and production portfolio.
Crude oil liftings rose 43 per cent to 3.97 million barrels, while natural gas sales grew five per cent to 34.01 billion standard cubic feet. NGL sales surged 90 per cent to 570,000 barrels.
Combined exploration and production sales volumes increased 21 per cent to 10.21 million barrels of oil equivalent.
Commenting on the performance, Group Chief Executive, Wale Tinubu, said the results reflected improved execution under the group’s operatorship, supported by renewed investment across its expanded upstream portfolio.
He said average production rose 14 per cent year-on-year, while facility uptime improved to 96.1 per cent from 85 per cent in the corresponding period of 2025.
He said, “He said, “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.
“Production averaged 42,985 boepd, up 14% year-on-year, while facility uptime improved to 96.1 per cent and production operating costs declined by 22 per to $15.39 per boe. These gains were achieved with zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked.”
The improvement in operational reliability, alongside increased output, helped reduce production operating costs by 22 per cent to $15.39 per barrel of oil equivalent.
The lower cost base was attributed to optimisation across transportation, logistics, services and information and communications technology, as well as higher production spread across a largely fixed field cost base.
