Oando Energy Resources, a subsidiary of Nigeria's Oando Plc, has announced plans to generate electricity from abandoned oil wells through a pilot geothermal-style power project.
The initiative represents a strategic pivot toward utilizing stranded assets for power generation, aligning with broader efforts to diversify the group's energy portfolio beyond traditional hydrocarbons.
The move comes as Oando navigates a complex financial landscape.
While the company recently reported its strongest annual financial performance to date, driven by production from acquired assets, the results have also triggered renewed scrutiny regarding the group's long-term financial health.
Investors are closely watching how management allocates capital between core operations and new ventures like this pilot program.
This development underscores the evolving strategy of major African energy firms as they seek to adapt to shifting market dynamics and regulatory pressures.