Aradel, Seplat, Oando sit on N2.86tn cash, plan H2 drilling to lift oil output
Aradel Holdings, Seplat Energy and Oando Plc together held N2.86 trillion in cash and cash equivalents at the end of H1 2026, with Aradel accounting for N1.72 trillion, Seplat for N598.35 billion and Oando for N544.92 billion. This combined war chest grew by N456.34 billion during the first six months, driven by stronger operating cash flow at Aradel and Seplat and increased financing at Oando. The companies say the cash is not idle; they plan to deploy it into capital expenditure in the second half of 2026 to boost production from their expanded upstream portfolios. Seplat, which deployed only $109.8 million of its $360‑$440 million full‑year capex guidance in H1, expects to spend $250‑$330 million in H2 on drilling, well interventions and short‑cycle activities, targeting eight active rigs versus five in H1. Oando intends to allocate $90‑$100 million for FY 2026 capex, focusing on seven development wells and about 100 rig‑less activities across OMLs 60‑63. Aradel continues to invest in assets under development, having added $189.59 million to such assets in H1 while reducing debt. Production guidance for 2026 stands at 110,000‑140,000 boepd for Aradel, 135,000‑155,000 boepd for Seplat (after averaging 139,509 boepd in H1) and 40,000‑50,000 boepd for Oando (up 16% year‑on‑year). Share prices over the last year rose 163% for Aradel and 177% for Seplat, while Oando fell 29% as it prepares for a new capital raise. With hundreds of millions earmarked for drilling, will the expected output increase translate into tighter fuel supplies and better prices for consumers, or will the cash mainly strengthen corporate balance sheets?