The Nigerian petroleum industry is experiencing a surge in activity as the rig count increased by 27.3% year-on-year to 14 as of June 2023 from 11 recorded during the same period in 2022.
On a month-on-month basis, the nation’s rig count rose by 7.7% to 14 in June 2023, an indication that the sector has started growing across the board following President Tinubu’s inauguration.
This was stated in the July 2023 Monthly Oil Market Report issued by the Organisation of Petroleum Exporting Countries (OPEC).
While OPEC did not explicitly attribute the increase to specific factors, analysts have linked this positive trajectory to the implementation of the Petroleum Industry Act (PIA), a comprehensive legislation that has instilled confidence among stakeholders, encouraging more investments and financial backing in the sector.
In the competitive oil and gas landscape for Africa, Nigeria was ranked third while Algeria and Libya were ranked first and second with 36 and 16 rig counts, respectively. Congo came last with just two rig counts, the lowest in the region.
The positive momentum doesn’t stop at rig count alone as Nigeria also witnessed an improvement in oil production.
The report noted that crude oil production rose 5.5% month-on-month to 1.249 million barrels per day (mbd) in June 2023, up from 1.184 million mbd recorded in May 2023.
However, on a year-on-year basis, oil output saw a decline of 17.6% from 1.515 mbd achieved in the corresponding period in 2022.
With rising rig counts, improved oil production, and the promise of substantial foreign investments, Nigeria’s petroleum sector appears to be entering an exciting phase, paving the way for growth, innovation, and enhanced energy security in the country.
As the nation looks forward to harnessing its vast natural resources, stakeholders are keen on sustaining this upward trajectory and propelling Nigeria to even greater heights in the global oil and gas arena.