Crude oil photo caption vanguardngr.

Nigeria’s Rig Count Drops 13% As Oil Output Increases To 1.4M BPD

However, the data stated that the country's rig count increased by 62.5 per cent year on year to 13 in October 2023, up from eight in the same month in 2022.

NIGERIA's rig count, a crucial measure of monitoring operations in the upstream sector, fell 13.3 per cent month on month, MoM, to 13 in October 2023, from 15 in September 2023.

According to the Organization of Petroleum Exporting Countries' (OPEC) November 2023 Monthly Oil Market Report, MOMR, released yesterday, indicated that there was limited investment and activity throughout the period.

However, the data stated that the country's rig count increased by 62.5 per cent year on year to 13 in October 2023, up from eight in the same month in 2022.

According to the survey, Algeria is the leading African nation with 43 rigs, while Gabon is least with only two rigs.

Secondary sources also show that the country's output increased modestly MoM by 1.2% to 1.416 million barrels per day, bpd in October 2023, from 1.399 million bpd the previous month of September 2023.

However, based on the government data, Nigeria's oil output increased modestly MoM by 0.29 per cent to 1.351 million bpd in October 2023, up from 1.347 million bpd in September 2023.

Commenting on the development, Engr. Gbenga Komolafe, Commission Chief Executive, of the Nigerian Upstream Petroleum Regulatory Commission, NUPRC, said the country has seen increased activity, owing to the positive impact of the Petroleum Industry Act, PIA, a comprehensive legislation aimed at increasing investment in the oil and gas industry.

In his presentation titled, Energy Transition Regime: Leveraging Investment Opportunities in the Nigerian Petroleum Sector, which was obtained by Energy Vanguard at the recently ended Africa Oil Week, AOW, in Cape Town, South Africa, he stated: “The PIA is positively impacting as it provides institutional governance, efficient administration, and attractive fiscal regimes while providing for host communities, thus creating a peaceful atmosphere for investment and operations.”

Already, the NUPRC chairman said that the Commission is collaborating with TGS-Petrodata, a worldwide famous organization, to supply data that would improve investor clarity.