Nigerian energy company Aradel Holdings has posted a massive increase in oil and gas production for the first half of 2026, driven by higher gas demand and an expanded operating portfolio.
The Lagos-listed firm reported an average total production of 139,500 barrels of oil equivalent per day (kboepd) for the six months ending 30 June—a more than five-fold increase compared to 22,400 kboepd in the same period last year. The surge was largely propelled by gas output, which jumped by 1,121% to 503.2 million standard cubic feet per day, supported by improved pipeline security and rising domestic and regional demand. Average crude oil production also rose significantly, up 258% to 55,600 barrels per day.
Key Financial Highlights:
Gross Revenue: Surged 577% to ₦2.49 trillion ($1.5bn–$1.6bn approx.), up from ₦368.1 billion in H1 2025.
Operating Profit: Climbed 789% to ₦1.05 trillion, boosted by stronger production and higher international oil prices, which averaged $90.40 per barrel.
Debt Reduction: Net debt dropped by 70% to ₦46.5 billion, down from ₦475.1 billion at the end of 2025.
Refinery Bottlenecks and Recovery
Despite the record upstream gains, the company’s downstream processing faced operational headwinds. Refined product output fell 22% year-on-year to 126.2 million litres, hit by unplanned plant downtime and raw material shortages in the first quarter of the year. However, production showed signs of recovery in the second quarter, rising 15% sequentially to 67.5 million litres as supply chain bottlenecks eased.
In a statement he signed, the Chief Executive Officer of Aradel, Adegbite Falade said:”Our enlarged portfolio provides more opportunities to generate stronger cash flow and returns for shareholders. Unlocking that potential is our main focus as we reaffirm our full-year production guidance of 110,000 to 140,000 barrels per day.”
Strategic Context
The strong performance reflects a broader shift in Nigeria’s energy sector, where local producers are playing an increasingly dominant role following asset divestments by international oil majors. Aradel’s ability to maintain pipeline availability—a historic vulnerability for energy operators in the Niger Delta—has been central to its recent volume gains
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