Nigeria’s Rig Count Declines MoM, but Year-on-Year Shows Resilience Amidst Global Trends

Nigeria’s rig count, a crucial metric indicating the level of activity in the upstream sector, experienced a month-on-month decline of 13.3 percent, falling from 15 in September 2023 to 13 in October 2023.

This downturn reflects a period of limited investment and activity, as highlighted in the November 2023 Monthly Oil Market Report (MOMR) released by the Organization of Petroleum Exporting Countries (OPEC).

However, on a year-on-year basis, the report revealed a noteworthy increase of 62.5 percent in Nigeria’s rig count, rising from eight in October 2022 to 13 in October 2023.

This resilience suggests a positive trajectory in the country’s oil and gas sector despite short-term fluctuations.

Nigeria’s oil output showed a marginal month-on-month increase of 1.2 percent, reaching 1.416 million barrels per day (bpd) in October 2023, compared to 1.399 million bpd in September 2023.

Data from official sources indicated a similar marginal rise of 0.29 percent, with oil output reaching 1.351 million bpd.

Commenting on these developments, Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), attributed the increased activities to the positive impact of the Petroleum Industry Act (PIA).

The PIA, a comprehensive legislation aimed at boosting investment in the oil and gas industry, has provided institutional governance, efficient administration, and attractive fiscal regimes, creating a conducive atmosphere for investment and operations.

Komolafe further disclosed that the NUPRC is collaborating with TGS-Petrodata, a globally recognized organization, to provide enhanced data clarity for investors, reinforcing Nigeria’s commitment to transparency and attractiveness in the energy sector.