In our last article on Oando Plc, dated December 1, 2024 (Oando Prices Under Pressure Amidst Easing Rally), we noted the company’s efforts to strengthen its presence in Nigeria’s oil and gas sector. Since then, Oando has made bold moves to expand its portfolio, with two major acquisitions solidifying its growth strategy.

Oando recently acquired a 60% stake in a prolific oilfield in the Niger Delta, estimated to hold over 100 million barrels of proven reserves. This acquisition is projected to increase the company’s crude oil production capacity by 25% in 2025, providing a significant boost to its upstream operations. Furthermore, Oando completed the acquisition of a downstream logistics provider specializing in bulk petroleum storage and distribution. This deal is expected to improve its supply chain efficiency and bolster its position in the fuel distribution market across West Africa.

As of January 2025, Oando’s stock is trading at ₦67.40, below a critical resistance level at ₦73. A breakout above this level could signal further bullish momentum, particularly as the market anticipates synergies from these acquisitions, however, the Elliot wave chart says a breakout may not be imminent soon.

While the company’s aggressive expansion positions it for future growth, challenges such as oil price volatility and regulatory compliance remain key risks. Investors should watch for updates on Oando’s integration of its new assets and their impact on revenue and profitability.

With its recent strategic acquisitions, Oando continues to demonstrate its commitment to scaling operations and capitalizing on opportunities in Nigeria’s dynamic energy sector.