Wale Tinubu: Oando Has Over a Billion Barrels of Oil Reserves
CHIGOZIE AMADI
Group Chief Executive, Oando Plc, Mr Wale Tinubu, has argued that onshore oil and gas assets are best managed by indigenous players due to their closeness to host communities and better handling of security challenges.
Tinubu disclosed this to CNBC Africa on the sidelines of the World Economic Forum (WEF) 2025 in Davos, Switzerland, a statement from the company said yesterday, arguing that local operators will engage host communities and regulators better.
The Oando chief executive also highlighted that Oando currently has over 1 billion in oil reserves, 300,000 barrels a day of oil processing capacity, 2 billion cubic feet a day of gas capacity, with net present value of the oil in its facilities put at over $10 billion.
He added that Nigerians have the skills and the capability to secure funding to thrive in onshore operations.
“The onshore assets in Nigeria are best in the hands of local players. The level of technology that is required to drill them is something that is commonplace. Nigerians have the skill, and the capacity, and we can also secure the funding.
“And the next step is to explore those resources, and we can do that by being closer to the community, having a better handle of security, and also having a better handle at dealing with the regulations and regulators. This is because at the end of the day, regulation needs to be collaborative as we are trying to secure the best for our nation,” he stated.
In a country like Nigeria, coupled with the country’s current state of economic challenges, the Oando chief executive pointed out that the country needs to improve exports as well as its balance of trade.
In addition , he stated that Nigeria must ensure it secures as much foreign exchange as it can, to reduce the exchange rate and help diversify the economy, explaining that the fastest way to do this is through the oil industry.
Several international oil companies (IOCs) have exited their onshore operations in the last two years, selling their assets to indigenous oil companies. For instance, Italian energy giant, Eni, quit onshore operations in Nigeria and sold its assets to Oando Plc.
The Davos, Switzerland, event was attended by world leaders, top executives of the 1,000 foremost global companies, leaders of international organisations and relevant non-governmental organisations. Participants deliberated on ways to move the planet forward at the prestigious World Economic Forum.
Since the founding of the Forum, its objective has been consistent: to be the world’s foremost platform to shape global, regional and industry agendas through multi-stakeholder engagement.
Themed ‘Collaboration for the Intelligent Age,’ the 2025 annual convening of investors, business leaders, political leaders, and economists focused on driving conversations that addressed geopolitical shocks, stimulating growth to improve living standards, and fostering a just and inclusive energy transition.
The event saw a Nigerian delegation, including government officials such as Kashim Shettima, Vice President of Nigeria; Wale Edun, Minister of Finance, Nigeria and Jumoke Oduwole, Minister of Industry, Trade, and Investment, Nigeria as well as CEOs such as Adewale Tinubu, Group Chief Executive, Oando PLC, among others.
Still on the Nigerian Energy sector, Wale Tinubu highlighted the immense prospects of indigenous energy companies taking over the divested assets by International Oil Companies (IOCs) in Nigeria.
He emphasised that by combining robust working capital, advanced technologies, and the unique skills, capacity, and local acumen of these indigenous players, who now significantly control Nigeria’s onshore assets, the industry can unlock previously untapped potential.
As one of the first indigenous companies that successfully acquired an IOCs’ onshore assets, AGIP, Tinubu highlighted the importance of partnership and critical financing to not only extract value from these material reserves but also accelerate the rate of extraction.
“As a company, we have over a billion barrels of reserves, 300,000 barrels a day of oil processing capacity, and over 2 billion cubic feet a day of gas capacity. Effectively, the net present value of the oil we have in our facilities is well over $10 billion,” remarked Tinubu.
He stressed the critical role of governments and regulators in maximising value from the industry to address economic challenges, improve the balance of trade, and attract greater foreign investment to Nigeria.
“We need to increase our exports significantly to improve our balance of trade and strengthen the Naira. The oil and gas industry offers the fastest path to achieving this, given our substantial reserves and existing infrastructure” he added.
The Oando chief also unveiled plans of how the company was set to adopt artificial intelligence, among other technologies, in its next drilling campaign to explore its over 1 billion barrels of oil reserves to strengthen decision-making and optimize costs in oil exploration.
“In a drilling operation, we have to make crucial decisions which have a high impact on costs,” Tinubu stated. “AI will allow us to analyse vast amounts of data, including decades of seismic technology and drilling experience, to identify the most optimal solutions,” he added.
In addressing the ongoing conversations about decarbonisation, Tinubu reinforced the need for a just energy transition, stating that Africa contributes a minuscule amount to global emissions, even though it constitutes about 20 per cent of the global population.
He, however, explained the immediate steps Oando has incorporated to reduce its carbon footprint.
“We are actively working hard to ensure that every molecule of carbon we put into the environment is mitigated through the implementation of effective carbon capture techniques” he stressed.
Wale Tinubu emphasised the critical role of partnerships, sustainable funding and innovation in driving the future of the energy sector in Africa. He expressed confidence in Oando’s ability to continue to lead the new era of indigenous players to unlock Africa’s energy potential.
The Annual Meeting in Davos is a global platform for engaging leaders from business, government, international organisations, academia, and civil society in peer-to-peer working sessions.
