Nigeria: Oando Targets Abandoned Oil Wells for Geothermal-Style Power

Oando Energy Resources, the upstream subsidiary of Oando Plc, plans to convert abandoned oil wells into sources of geothermal-style electricity in a pilot project aimed at expanding Nigeria's power supply and supporting the use of domestic gas.

The company disclosed the plan during a meeting between its management and the Minister of Power, Joseph Tegbe, where discussions focused on private-sector investment in electricity generation and the role of domestic energy resources in improving power supply.

Under the pilot scheme, Oando intends to repurpose abandoned oil wells within its joint-venture operations to generate electricity using geothermal-style technology. The company described the project as part of its broader clean energy strategy and an effort to develop locally driven solutions to Nigeria's power challenges.

The proposed initiative is significant because it could give ageing or abandoned oil assets a new role in the power sector while adding another source of electricity to Nigeria's energy mix. If the pilot proves commercially viable, the approach could offer a pathway for repurposing existing oil infrastructure for power generation and potentially reduce reliance on conventional fossil-fuel generation.

Oando stated that the project is being pursued through Oando Clean Energy, an initiative established five years ago to develop a mix of gas, solar, wind and hydropower solutions aimed at providing more reliable and affordable electricity across Africa.

The company's involvement in the power sector also includes the 480-megawatt Okpai Independent Power Plant, which supplies electricity to the national grid. Oando's Managing Director of Energy Resources, Ainojie Irune, said the facility contributes about 15 per cent of Nigeria's electricity supply and serves an estimated 50 million people.

Irune added that Oando was placing greater emphasis on gas within its investment portfolio, arguing that expanding domestic energy production and infrastructure would be critical to economic recovery and industrial development.

"Domestic capacity is not only an imperative now, but it is also the only way we get out of an economic crisis," he said.

Government backs gas-to-power strategy

Tegbe welcomed the company's plans and reaffirmed the Federal Government's focus on strengthening the gas-to-power value chain as part of its industrialisation strategy.

He said Nigeria should make effective use of its available energy resources, particularly hydropower, gas and solar, while ensuring that electricity is produced as efficiently and affordably as possible.

"We can talk about carbon credits, but in reality, it's about the resources you have. You have to use them. That's your advantage," the minister said.

Tegbe also welcomed Oando's offer to provide technical and advisory support to the ministry, stressing that stronger cooperation between government and private-sector operators would be needed to deliver lasting improvements in the electricity sector.

He noted that skills transfer and knowledge exchange would also be important in strengthening the capacity of public institutions to manage and deliver power projects.

The two sides agreed to deepen their engagement in the coming weeks, according to the statement.

The proposed geothermal-style project remains at the pilot stage, and the company did not disclose the number of abandoned wells involved, the planned generation capacity, investment cost or timeline for commissioning. Its eventual impact will depend on the technical and commercial performance of the pilot and whether the model can be replicated across other abandoned oil wells in Nigeria.