Oando Energy Resources, the upstream arm of Nigerian oil giant Oando, has secured the operatorship of an oil block in Angola’s Onshore Kwanza Basin. This move marks the company’s entry into Africa’s second-largest oil-producing nation, as confirmed by Oando in a statement on Wednesday.
The award follows a competitive bidding process conducted by the Angolan National Agency for Petroleum, Gas, and Biofuels, making Oando the operator of the Kwanza block. The company’s success is part of a broader strategy to increase its exploration and production capacity across the continent.
Wale Tinubu, CEO of Oando, expressed the company’s excitement over the new venture. “This development underscores Oando’s relentless commitment to expanding our footprint across Africa and contributing to the continent’s energy sufficiency goal,” he said. He further added, “I am confident in our ability to leverage our expertise to develop and maximise the value of this asset.”
Oando will hold a 45 percent participating interest in the block, while other partners in the joint venture include Effimax with a 30 percent interest and Sonangol, Angola’s state oil company, holding a 15 percent stake. The Kwanza Onshore Basin is known for its substantial exploration potential, with estimated prospective resources ranging from 770 million to 1.1 billion barrels of crude, offering significant upside for Oando.
The announcement further strengthens Oando’s presence in the region. The company recently made headlines with its $783 million acquisition of Eni’s Nigerian subsidiary, Nigerian Agip Oil Company, in August. This deal increased Oando’s stakes in key offshore assets and boosted its total reserves by 98 percent.
Oando’s expansion efforts come as the company continues to grow its portfolio. The company now holds interests in 14 oil and gas assets spanning exploration, development, and production in both onshore and offshore locations in Nigeria, as well as in São Tomé and Príncipe.
Despite a 30.8 percent drop in net profit for the nine months leading to September, the company reported a 35.8 percent increase in revenue, reaching N3.2 trillion.
Oando’s entry into Angola marks a new chapter in its African expansion strategy, reflecting growing ambition in the continent’s competitive oil sector.
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