Would you like to receive notifications on latest updates of the following headlines?

Functional Oil Drilling Rigs In Nigeria Rise To 16 – Opec

POSTED ON March 17, 2024 •   Business      BY Abiodun Saheed Omodara •   VIEWS 187

Data from the latest March 2024 Monthly Oil Market Report of the Organisation of Petroleum Exporting Countries (OPEC) has shown that the number of functional oil drilling rigs across the country has increased marginally to 16 in February 2024.

OPEC indicated that the country’s oil rigs increased from 15 in January to 16 in February, a development which the industry operators described as significant for the production of crude.

OPEC data showed that the country operated an average of 13, 16 and 14 oil rigs in the second, third and fourth quarters of 2023, respectively.

An oil rig/platform is a large structure with facilities to extract and process petroleum and natural gas that lie in rock formations beneath the seabed.

Nigeria, as an oil/gas-rich nation, drills crude oil daily from onshore and offshore sources for export.

It earns more than 80 per cent of its foreign exchange from oil; hence, the number of functional oil drilling rigs across the country is vital.

The international oil cartel revealed that Nigeria’s oil rig count was lowest in 2021, when only an average of seven rigs was functional.

It rose to an average of 10 rigs in 2022 and increased to an average of 14 rigs in 2023.

The Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission, Gbenga Komolafe, in a presentation obtained in Abuja, stated that the country’s oil drilling rigs had increased by over 270 per cent in the last three years.

This, according to him, had also impacted the country’s oil output lately, as Nigeria was gradually approaching the oil production quota approved by OPEC.

“275 per cent growth in rig count from just eight in 2021 to an average of 30 in the past one year. Early first oil was achieved in recently streamed fields through accelerated FDPs.

“Some of the fields include: Ikike (Total), Efe field (Newcross), Utapate, (NEPL), Akubo Field (SEEPCo), Oyo (General Hydrocarbon) and several others streamed under Extended Well Tests including Ethiope, Omefejo, Ofa, Olure, Ibom, Apani, Kalaekule, etc.,” Komolafe stated.

He disclosed this while speaking on what he called a “success story” in Nigeria’s oil sector, as the NUPRC boss further pointed out that “a total of 51 Field Development Plans (were) approved in the year 2022 – 2023.”

This, he said, was “expected to attract a total $17.64bn investment inflow as well as deliver cumulative oil recovery and gas recovery estimated at 2.12 billion barrels and 13.13 trillion cubic feet respectively in the next five years.”

He also noted that a total of about $2.5bn investment was expected in 175 wells drilling in the year 2022 – 2023.

“A total of $2.68bn investment in 842 well workovers and other well intervention activities in the year 2022 – 2023 resulting in increased average oil production,” Komolafe stated.

According to Komolafe, though the actual national crude oil production currently averages 1.33 million barrels per day and 256,000 barrels of condensate per day, the national technical production potential currently stands at 2.26 million bpd, while the current OPEC quota is 1.5 million bpd.

“Closing the gap between the actual oil production and the technical potential presents a window of investment opportunities for investors and a significant opportunity for Nigeria to unlock additional revenue streams, address the current foreign exchange gap and strengthen her economic resilience. So there is opportunity in every disability,” the NUPRC boss stated.

He remarked the commission had also intensified efforts in collaborating with international oil companies to ensure accelerated maturation and development of some high-volume deep offshore assets.

“The commission has created further investment opportunities through the ongoing licensing round for seven deepwater acreages, as well as the proposed 2024 closed bids expected to increase the nation’s reserve and production and boost national revenue.

“At this point, permit me to reiterate that both open and closed bids are permissible by the law as Section 73(1) of the PIA does not preclude either approach, so far as the licensing round is ‘…based on a fair, transparent and competitive bidding process’,” he enunciated.

RECOMMENDED FOR YOU
IMF pledges support for Tinubu's reforms
BY Abiodun Saheed Omodara November 21, 2024 0

The President of the International Monetary Fund (IMF), Kristalina Georgieva has expressed strong ba...

RECOMMENDED FOR YOU
Amazon Shares Show Resilience Amid Market Fluctuations
BY Suleiman Kelvin Jimoh November 21, 2024 0

Amazon.com Inc (AMZN) has demonstrated a remarkable rebound in the stock market, showing a year-to-d...

RECOMMENDED FOR YOU
Gombe gov presents N320bn 2025 budget to assembly
BY Abiodun Saheed Omodara November 20, 2024 0

Gombe State Governor, Muhammadu Yahaya, presented a proposed budget of N320.11 billion for the 2025...

RECOMMENDED FOR YOU
NNPCL: Coalition group vows protest, says 1.6bn litres PMS will cripple economy
BY Benedicta Bassey November 20, 2024 0

NIGERIA—Following the decision by the Nigeria National Petroleum Company Limited (NNPCL), to i...

RECOMMENDED FOR YOU
FG reviews housing budget to N500bn for 2025
BY Benedicta Bassey November 19, 2024 0

NIGERIA —The Federal Government on Tuesday said it is reviewing it's annual housing budget to...

RECOMMENDED FOR YOU
Naira appreciates, hit N1,735/$ in parallel market
BY Benedicta Bassey November 19, 2024 0

The Naira appreciated to N1,735 per dollar in the parallel market from N1,740 per dollar last weeken...

RECOMMENDED FOR YOU
Tinubu, India PM sign pacts to foster collaboration in defence, economy
BY Benedicta Bassey November 18, 2024 0

NIGERIA — Nigeria and India have entered into partnership to foster collaboration in  def...

RECOMMENDED FOR YOU
UK regular pay growth slows, offering Bank of England hope for easing inflation pressures
BY ROCKETPARROT.com staff November 12, 2024 0

LONDON, Nov. 12 – British wage growth excluding bonuses hit a two-year low in the third quarte...

OUR CHANNELS:

OTHER ARTICLES ::

25th November, 2024
NAFDAC warns against unsafe antibiotics use in animals, humans
BY Benedicta Bassey November 25, 2024 0

NIGERIA  — The Director-General, National Agency for Food and Drug Administration an...


Top doctors halt strike action to review FG's response
BY Benedicta Bassey November 25, 2024 0

NIGERIA — The Medical and Dental Consultants’ Association of Nigeria (MDCAN) has suspend...


Tinubu eyes livestock sector reform, investment to curb farmer-herder clashes
BY Abiodun Saheed Omodara November 25, 2024 0

President Bola Tinubu has reaffirmed his administration’s commitment to resolving the farmer-h...


Katsina Govt. applauds  NAF  strike against bandits, vows to sustain regional stability
BY Abiodun Saheed Omodara November 25, 2024 0

KATSINA – The Katsina State Government has commended the Nigerian Air Force (NAF) for successf...


Breaking : Supreme court voids National Lottery Act
BY Abiodun Saheed Omodara November 25, 2024 0

The Supreme Court, on Friday, nullified the National Lottery Act 2005 enacted by the National Assemb...


ECB's renews integration call as trade war looms
BY Abiodun Saheed Omodara November 25, 2024 0

European Central Bank, President Christine Lagarde renewed her call for economic integration across...


China expands Visa-free entry to more countries to boost economy
BY Abiodun Saheed Omodara November 25, 2024 0

On Friday, China announced that it would expand visa-free entry to citizens of nine more countries a...


FAO aims key outcomes at COP16 Saudi Arabia
BY Abiodun Saheed Omodara November 25, 2024 0

The assistant Director-General of the Food and Agriculture Organization (FAO), Dr. Abdul Hakim Elwae...


Illegal detention: Bizman slams N50m suit on NDLEA
BY Benedicta Bassey November 25, 2024 0

NIGERIA — A businessman, Damilare Samuel, has slammed the National Drug Law Enforcement Agency...


Appeal Court invalidates verdict against Rivers LG election
BY Benedicta Bassey November 25, 2024 0

ABUJA, Nigeria —The Court of Appeal, sitting in Abuja has nullified the judgement that prevent...


Menu