Oando Energy Resources, a subsidiary of Oando Plc, has announced plans to generate electricity from abandoned oil wells through a pilot geothermal-style power project, marking a new phase in the company’s clean energy strategy and supporting Nigeria’s drive to expand reliable electricity supply.
The initiative was unveiled during a courtesy visit by Oando’s management to Nigeria’s Minister of Power, Joseph Tegbe, where discussions focused on the company’s contributions to the electricity sector and the role of domestic gas resources in driving industrial growth.
Pilot Project to Repurpose Abandoned Oil Wells
Speaking during the meeting, Managing Director of Oando Energy Resources, Dr. Ainojie Irune, said the company intends to repurpose abandoned oil wells within the Oando Joint Venture to generate geothermal-style electricity.
According to Irune, the project represents an innovative approach to leveraging existing energy infrastructure while advancing Nigeria’s transition to cleaner and more sustainable power sources.
He described the initiative as one of several homegrown solutions aimed at improving electricity access and diversifying the country’s energy mix.
Clean Energy Strategy Expands Beyond Oil and Gas
Irune explained that the project is being developed under Oando Clean Energy, the company’s renewable energy platform established five years ago to explore integrated energy solutions across Africa.
The platform focuses on combining natural gas, solar, wind and hydropower technologies to deliver reliable, affordable and low-carbon electricity.
He noted that Oando is increasingly positioning itself as an integrated energy company, with growing investments in natural gas and renewable energy to support Nigeria’s long-term energy security.
Okpai Power Plant Supports National Grid
Irune highlighted Oando’s existing contribution to Nigeria’s electricity supply through the 480-megawatt Okpai Independent Power Plant, which supplies electricity directly to the national grid.
According to him, the facility contributes approximately 15% of Nigeria’s grid power supply and provides electricity to an estimated 50 million Nigerians.
He added that expanding domestic gas utilisation remains central to Nigeria’s economic recovery and industrialisation efforts.
“Domestic capacity is not only an imperative now, but it is also the only way we get out of an economic crisis,” Irune said.
He stressed that sustained investment in power infrastructure and domestic energy production would be critical to building a productive economy and supporting industrial growth.
Power Minister Backs Gas-to-Power Strategy
Minister of Power Joseph Tegbe welcomed Oando’s continued engagement with the Federal Government and reaffirmed the administration’s commitment to strengthening Nigeria’s gas-to-power value chain.
He said Nigeria should prioritize the efficient use of its abundant natural resources while pursuing a balanced energy transition.
“We can talk about carbon credits, but the reality is that you have to utilise the resources you have. That’s your advantage. We must do it in the cheapest and most efficient way possible. For me, it’s hydro, gas and solar,” Tegbe said.
The minister noted that expanding electricity generation through domestic energy resources remains essential to achieving the government’s industrialisation agenda.
Public-Private Collaboration Key to Energy Reform
Tegbe also welcomed Oando’s offer of technical and advisory support, emphasizing that closer collaboration between government and private-sector operators will be crucial to accelerating reforms in Nigeria’s power sector.
He said knowledge transfer and capacity building within public institutions would help improve project delivery and strengthen the implementation of critical energy infrastructure.
“I look forward to that collaboration, and I believe the power sector will reach a point where we begin to see tangible progress. We also need to strengthen skills transfer to ensure our public institutions are equipped to deliver these projects,” he said.
Oando Calls for Long-Term Partnership
According to Oando, both parties agreed to deepen collaboration in the coming weeks to advance projects supporting Nigeria’s energy transition and electricity expansion goals.
Irune said achieving Nigeria’s energy transformation would require sustained cooperation between government and industry.
“The ambition is not yours alone,” he told the minister, stressing that a shared long-term commitment between policymakers and private investors will be essential to delivering Nigeria’s energy roadmap.
The proposed geothermal-style project reflects growing efforts by energy companies to repurpose legacy oil and gas assets while supporting cleaner electricity generation, expanding domestic energy capacity and strengthening Nigeria’s transition toward a more diversified and resilient energy sector.