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 175

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
Proposed tax reform bills not against North, says Presidency
BY Abiodun Saheed Omodara October 31, 2024 0

The Presidency has said contrary to job loss fears and perceived marginalisation of the North, the t...

RECOMMENDED FOR YOU
Kaduna approves N72,000 minimum wage
BY Abiodun Saheed Omodara October 31, 2024 0

The Kaduna State Governor, Uba Sani, has approved a new minimum wage of N72,000 for civil servants i...

RECOMMENDED FOR YOU
32 states get 55% of revenues from FAAC – Report
BY Abiodun Saheed Omodara October 30, 2024 0

A new report by civic-tech organisation, BudgIT, has revealed that 32 out of Nigeria’s 36 stat...

RECOMMENDED FOR YOU
2025 budget: Tinubu to submit MTEF to N’Assembly next week – Senate spokesman
BY Abiodun Saheed Omodara October 30, 2024 0

President Bola Tinubu will submit the Medium Term Expenditure Framework and Fiscal Strategy Paper to...

RECOMMENDED FOR YOU
FG must be intentional about addressing hunger, poverty in Nigeria — Security expert
BY Benedicta Bassey October 29, 2024 0

High Chief Aimanerimi Victor Arogunyo is the spokesperson for Akoko-Edo Security Network and the Nat...

RECOMMENDED FOR YOU
Nigeria loses $2.5bn to non-implementation of ICTN- Shippers council
BY Abiodun Saheed Omodara October 29, 2024 0

Nigeria lost about $2.5bn in five years, and $500m annually due to the non-implementation of the Int...

RECOMMENDED FOR YOU
CBN plans to raise fines on erring banks
BY Abiodun Saheed Omodara October 29, 2024 0

The Central Bank of Nigeria is preparing to impose stricter fines on banks that fail to comply with...

RECOMMENDED FOR YOU
IFC, CBN in $1bn Partnership to boost local currency financing in Nigeria
BY Abiodun Saheed Omodara October 28, 2024 0

The International Finance Corporation, a member of the World Bank Group and Nigera’s Central B...

OUR CHANNELS:

OTHER ARTICLES ::

6th November, 2024
Economic Showdown: Atiku's Critique vs. Tinubu's Policies A Leadership Divide
BY ROCKETPARROT.com staff November 5, 2024 0

In a recent exchange highlighting the growing tensions in Nigeria's political landscape, former Vice...


Indianapolis Woman Dies in I-65 Accident Near Columbus After Return from Kentucky Event
BY ROCKETPARROT.com staff November 5, 2024 0

COLUMBUS, Ind. — A tragic accident claimed the life of Indianapolis resident Omotope G. Oyedir...


Adriano's Decline: From Football Glory to Favela Streets
BY ROCKETPARROT.com staff November 5, 2024 0

Health concerns arise as a recent video surfaces showing Adriano, the former Inter Milan and Brazil...


Proposed tax reform bills not against North, says Presidency
BY Abiodun Saheed Omodara November 5, 2024 0

The Presidency has said contrary to job loss fears and perceived marginalisation of the North, the t...


Kaduna approves N72,000 minimum wage
BY Abiodun Saheed Omodara November 5, 2024 0

The Kaduna State Governor, Uba Sani, has approved a new minimum wage of N72,000 for civil servants i...


Man Utd seal deal with Amorim as new manager — Report
BY Abiodun Saheed Omodara November 5, 2024 0

Manchester United has finalised an agreement with Sporting Lisbon to appoint 39-year-old Ruben Amori...


Nile Group collaborates with Ooni of Ife to manage his theaters
BY Ebiakuboere England November 5, 2024 0

His Imperial Majesty, the Ooni of Ife, and Nile Cinemas have inked a historic management contract fo...


Bruno Mars tops Spotify monthly listeners record
BY Ebiakuboere England November 5, 2024 0

Grammy-winning singer Bruno Mars has broken the previous record with 120,862,858 monthly Spotify lis...


South Africa to strip Chidimma Adetshina of ID documents
BY Ebiakuboere England November 5, 2024 0

Nigerian-South African Model Chidimma Adetshina faces the possibility of losing her national documen...


Senate confirms seven ministerial nominees
BY Benedicta Bassey November 5, 2024 0

The Senate has screened and confirmed seven ministerial nominees appointed by President Bola Ahmed T...


Menu