Nigeria drops in oil rig count after steady rise
By Jeph Ajobaju, Chief Copy Editor
Nigeria’s oil industry ‘rig count’ dropped from 11 in July to 10 in August, according to the latest report of the Organisation of Petroleum Exporting Countries (OPEC) which shows Algeria made the biggest gains on the continent last month.
Rig count is a major global index of measuring exploration and other activities in the upstream sector of the petroleum industry.
Nigeria’s rig count began this year from a low point of six but progressed steadily to 11 in April which it sustained till July before the setback.
OPEC did not disclose the factors responsible for the slide in its September 2022 Monthly Oil Market Report (MOMR) but said both International Oil Companies (IoCs) and Nigerian ones invested little in oil exploration in August.
That means the impact of the Petroleum Industry Act (PIA) expected to be positive on investment, exploration, and production has not yet been felt.
The report shows Algeria was the highest deploying nation with 33 rigs and Equatorial Guinea came last with no rig.
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Impact of PIA gradual
Oil and Gas Service Providers Association of Nigeria (OGSPAN) National President Mazi Colman Obasi said it would take some time for the impact of the PIA to be felt in the industry, according to Vanguard.
“It would take a relatively long time to reap the fruits of the PIA, especially in terms of oil and gas exploration and production.
“Some investments are currently being made, but they would not amount to major oil and gas finds and output immediately,” he explained.
Energyhub Nigeria lead promoter Amieyeofori Felix also stressed the positive impact of the PIA would be gradual.
Nigeria slips into third in African oil output ranking
Angola produced the most oil per day on the African continent in August, followed by Libya. Nigeria slipped into third place with 972,000 barrels per day (bpd), according to OPEC.
OPEC made the disclosure in its September 2022 report, which confirmed figures released by the Nigeria Upstream Petroleum Regulatory Commission (NUPRC).
Nigeria’s slump to below one million bpd in August 2022 was the lowest ever in several years, and OPEC said it made Angola and Libya to relegate Nigeria to third position, falling from coveted number one in Africa and sixth in the world.
Angola churned out an average 1.187 million bpd (mbpd) and Libya 1.123 mbpd.
“According to secondary sources, total OPEC-13 crude oil production averaged 29.65 mb/d in August, higher by 618,000 month-on-month.
“Crude oil output increased mainly in Libya and Saudi Arabia, while production in Nigeria declined,” OPEC said.
