Exploration: Nigeria’s rig count rises by 116.7% to 13

Pipes at the landfall facilities of the ‘Nord Stream 2’ gas pipline are pictured in Lubmin, northern Germany, on Feb. 15, 2022. PHOTO: AP

By Udeme Akpan

Nigeria’s rig count, an index for measuring performance in the upstream sector, increased Year-on-Year, YoY, by 116.7 per cent to 13 in January 2023, from six in the corresponding period of 2022.

However, on Month-on-Month, MoM, the rig count rose by 8.3 per cent to 13 in January 2023, from 12 recorded in the preceding month of December 2022.

The data obtained from the Organisation of Petroleum Exporting Countries, OPEC February 2023 Monthly Oil Market Report, MOMR, indicated the latest as the highest since 2020.

Despite the rise, the report indicated that Nigeria’s rig count was not the highest as Algeria, which topped the list of African nations with 31 while Equatorial Guinea comes last with zero rig count.

Meanwhile, OPEC has urged its member states, including Nigeria to increase investment and by extension exploration and production capacity in order to meet demand.

Similarly, the Minister of State for Petroleum Resources, Chief Timipre Sylva, has also called on local and foreign investors to stake their resources in the industry. 

The Executive Chairman, African Energy Chamber, Mr. NJ Ayuk, who quoted the Minister as speaking at the just-concluded Invest in African Energy Reception in London, stated: “With the Nigerian energy market on the precipice of another transformation on the back of diversification and market-driven policy implementation, the participation of Minister Sylva is key for securing new capital for Nigeria’s rapidly growing market while enabling new players and financiers to expand their footprint in one of Africa’s biggest oil-producing countries.

“Nigeria has emerged as one of the most attractive destinations for foreign investment owing largely to the signing into law of the Petroleum Industry Act in 2021. With the Act having overhauled the country’s regulation and governance, addressing key growth inhibitors by prioritizing transparency, procedural clarity and attractive fiscal terms for regional and international players, the Nigerian energy market is more enabling for business than ever.

 “The Act itself has already unlocked tangible benefits, with the country positioning itself as the biggest oil producer in Africa in 2023, despite a year of production declines owing to challenges associated with oil theft and reduced exploration. With the state-owned company, the Nigerian National Petroleum Corporation identifying and shutting down an illegal pipeline responsible for the loss of up to 600,000 barrels per day (bpd) of crude oil, production has rapidly increased to approximately 1.2 million bpd in December 2022, setting the country up for an exciting year in 2023. 

“The country is more ambitious than ever when it comes to expanding the oil and gas market even further, with the government incentivizing Exploration and Production, E&P activity in a bid to boost production levels further. As such, opportunities for upstream players have opened up.

 “Opportunities in the oil industry, over 200 trillion cubic feet (tcf) of proven natural gas reserves – and opportunities to increase this figure to 600 tcf with advancements in exploration – have positioned the country as the destination of choice for financiers and project developers from across the natural gas landscape. At a time when global markets are urgently seeking alternative gas supplies in light of ongoing supply constraints, Nigerian gas has emerged as a top solution and investors are encouraged to capitalize on the opportunities present across this rapidly growing market.”

He added: “Nigeria’s oil and gas market opportunities transcend exports, with the country well-positioned to feed into regional supply chains. Having signed a deal with Equatorial Guinea that would see Nigerian gas being processed at the country’s Punta Europa facilities while making steady progress to complete the Trans-Saharan Gas Pipeline and breaking ground on new project developments, Nigeria is opening new opportunities for electrification and industrialization in Africa on the back of intra-African gas trade, made possible through initiatives such as the African Continental Free Trade Agreement and the progressing Central African Pipeline System.”

Comments

Leave a Reply

Skip to toolbar