Nigeria’s Rig Count Declines MoM, but Yearly Growth Indicates Resilience in the Upstream Sector

The latest Monthly Oil Market Report (MOMR) from the Organisation of Petroleum Exporting Countries (OPEC) reveals a 13.3% month-on-month decrease in Nigeria’s rig count from 15 in September 2023 to 13 in October 2023.

This dip signifies limited investment and activities in the upstream sector during the period.

However, on a year-on-year basis, the nation’s rig count surged by an impressive 62.5%, rising from eight in October 2022 to 13 in October 2023.

In contrast, Algeria emerged as the leading African nation with 43 rigs, underscoring its robust activities in the sector, while Gabon trailed with only two rigs.

The MOMR also reported a marginal month-on-month increase in Nigeria’s oil output, rising by 1.2% to 1.416 million barrels per day (bpd) in October 2023, compared to 1.399 million bpd in September 2023.

Engr. Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), attributed the increased activities in Nigeria’s upstream sector to the positive impact of the Petroleum Industry Act (PIA).

He emphasized that the PIA, with its comprehensive legislative framework, aims to enhance institutional governance, administration efficiency, attractive fiscal regimes, and provisions for host communities, fostering a conducive environment for investment and operations.

Komolafe also announced a strategic partnership between NUPRC and TGS-Petrodata to acquire 56,000 square kilometers of 3D seismic gravity data in the Niger Delta deep and Ultra Deep Offshore.

This initiative aims to de-risk exploration and attract further investment in Nigeria’s petroleum sector.