Oando Plc says it reduced its production operating costs by 22 per cent to $15.39 per barrel of oil equivalent in the nine months ended September 2026, from $19.67 in the corresponding period of 2025, as its average daily production increased by 14 per cent to 42,985 barrels of oil equivalent per day.
The company disclosed this in its unaudited financial results for the nine months, attributing the reduction in operating costs to optimisation across transportation, logistics, services, and information and communications technology, alongside increased production across a largely fixed field cost base.
Oando also reported an improvement in facility uptime to 96.1 per cent from 85 per cent in the corresponding period of 2025, which it said strengthened the reliability of its production and evacuation infrastructure.
Commenting on the performance, the Group Chief Executive of Oando, Wale Tinubu, stated that the company’s investment drive and operational execution had improved efficiency, reliability and production across its upstream portfolio.
“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 per cent year-on-year, while facility uptime improved to 96.1 per cent and production operating costs declined by 22 per cent to $15.39 per boe. These gains were achieved with zero fatalities and zero lost-time injuries across approximately 14.9 million hours worked,” Tinubu said.
A breakdown of the company’s production showed that crude oil output increased 12 per cent to 12,193 barrels per day, while gas production rose 13 per cent to 28,689 barrels of oil equivalent per day.
Natural gas liquids production recorded a 53 per cent increase to 2,103 barrels per day during the review period.The higher production translated into increased sales volumes, with crude oil lifts rising 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 also increased 90 per cent to 0.57 million barrels, bringing the company’s total exploration and production sales volumes to 10.21 million barrels of oil equivalent, a 21 per cent increase over the corresponding period of 2025.
The improved operational performance contributed to a nine per cent increase in revenue to N2.78tn, while gross profit rose sharply by 483 per cent to N174.5bn from N29.8bn in the same period of 2025.
Oando also recorded an operating profit of N159.7bn, reversing the operating loss of N109.7bn reported in the corresponding period of the previous year.