See the number of oil rigs available in Nigeria as OPEC unveils new ranking

• The Organisation of Petroleum Exporting Countries (OPEC) has scored Nigeria low in oil exploration in September 2024
• The organisation disclosed in its Monthly Oil Market Report for October 2024 that the country’s exploration declined by 6.7%
• It said that the number of oil rigs deployed during the period fell by 14 compared to 14 rigs recorded in the same period in 2023

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Crude oil exploration in Nigeria declined 6.7% annually in September 2024 due to an investment drought in the upstream sector.

The global oil cartel, the Organisation of Petroleum Exporting Countries (OPEC), disclosed the development in the number of rigs deployed for operations during the period.

OPEC says Nigeria's oil exploration declined in September 2024 Credit: Hybrid Images
Source: Getty Images

OPEC ranks African countries with the highest oil rigs

OPEC stated this in the Monthly Oil Market Report for October 2024, stating that yearly, Nigeria’s oil exploration declined by 6.7% in September as the rigs dropped for exploration dipped to 14 from 15 recorded in the same period of 2023.

However, Nigeria’s oil exploration remained flat every month, as the number of deployed rigs remained static at 14 in the review period, as recorded in August 2024.

According to the oil cartel, Algeria emerged as the African country with the highest oil exploration with 43 rigs, while Equatorial Guinea recorded zero rigs.

Nigeria’s Oil Exploration Drops

Checks show that low investment in Nigeria’s oil industry during the period is responsible for the development.

Nigeria has witnessed several divestments in the oil sector by international oil companies (IOCs) that are pivoting towards cleaner energy.

According to reports, Nigeria has about 37 billion barrels of oil reserves and 209 cubic feet of authentic gas reserves.

Nigeria offers 31 oil blocks

The development comes as the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has asked foreign investors to take advantage of the opportunity of the ongoing licensing round in Nigeria to benefit from and contribute to Nigeria’s fast-growing oil and gas industry.

NUPRC's chief executive, Gbenga Komolafe, disclosed this during the Africa Oil Week Conference in Cape Town, South Africa. 

He revealed that the licensing round features over 31 oil blocks, supported by a robust regulatory framework under the Petroleum Industry Act (PIA).

Komolafe said vital natural resources, a competitive regulatory framework, and strategic incentives had created a favourable environment for investors wishing to participate in Nigeria’s oil and gas sector.

He assured investors of a new dispensation of certainty in Nigeria’s oil and gas industry, stressing that the country remains committed to ensuring transparency, social inclusion, and sustainable development.

The NUPRC boss said the 2024 licensing round offers investors a significant opportunity to contribute to and benefit from Nigeria's long-term energy growth.

Nigeria’s untapped oil resources

According to Komolafe, Nigeria boasts vast untapped potential, including 209.26 trillion cubic feet of natural gas reserves, 37.5 billion barrels of crude oil reserves, and an oil production capacity of 2.4 million barrels daily.

He further stated that in line with the PIA provisions, the commission introduced comprehensive guidelines to moderate the licensing process, boost stakeholder engagement, and ensure environmental sustainability.

Dangote gears up for crude oil production

Legit.ng earlier reported that the Dangote Group is preparing to begin production at its two oil fields in Nigeria by the fourth quarter of 2024, following several months of disruptions in crude supply.

According to S&P Global Commodity Insights, the company plans to launch production at its upstream projects in Oil Mining Leases 71 and 72 in the Niger Delta, initially producing around 20,000 barrels per day.

This output is expected to increase further in the first quarter of 2025.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

Source: Legit.ng