Nigeria’s oil and gas sector is experiencing a dramatic resurgence, with the country’s rig count skyrocketing from just eight in 2021 to an impressive 69 rigs, representing a 762.5% increase over four years. The Nigerian Upstream Petroleum Regulatory Commission announced the figures, indicating renewed confidence and activity in the nation’s petroleum industry.
The current rig count comprises 40 active rigs, eight on standby, five on warm stack, four on cold stack, and 12 in transit. The commission anticipates further growth in the coming months, driven partly by a policy review that identified 400 dormant oilfields and prompted action from previously inactive operators.
The commission’s head of media and strategic communication, Eniola Akinkuotu, attributed the sector’s progress to President Bola Tinubu’s directive that Nigeria is open for business. The conducive investment climate in the upstream sector reflects this policy stance and has attracted renewed interest from operators.
The NUPRC has recorded 16 significant achievements since the introduction of the Petroleum Industry Act, including exceeding revenue targets for three consecutive years. The commission’s revenue surpassed targets by 18.3%, 14.65%, and 84.2% in 2022, 2023, and 2024 respectively, contributing to Nigeria’s economic growth despite oil production and price volatility.
A record potential investment of $39.98 billion from field development plans has been noted, with 79 plans approved between 2024 and 2025. This investment is expected to bolster crude oil production, which has already increased to an average of 1.65 million barrels per day. The Project 1mbopd initiative aims to push this figure to 2.5 million barrels per day by 2027.
The commission has been implementing the Drill or Drop policy to ensure optimal use of oil assets and prevent dormant fields from tying up potential reserves. Efforts in gas flare commercialization have led to the award of flare sites under the Nigerian Gas Flare Commercialisation Programme, which aims to eliminate gas flaring and attract $2.5 billion in investment.
Joint efforts by security forces and private contractors, along with the NUPRC, have reduced daily crude oil losses by 90%, from 102,900 barrels per day in 2021 to 9,600 barrels per day. The commission has also overseen the drilling and completion of 306 development wells since 2022 and issued Nigeria’s first petroleum exploration license for a significant offshore survey.
Under the leadership of Gbenga Komolafe, the NUPRC has established the African Petroleum Regulators Forum, promoting cross-border development and a unified African voice in global hydrocarbon advocacy.
Source: offshore-technology.com