Reports obtained from the Organisation of Petroleum Exporting Countries (OPEC) indicates that Nigeria’s crude oil exploration has suffered a setback as the country’s rig count fell by 38% in the last 11 months.
The rig count fell from 129 recorded in 2020 to 80 in 2021. In April this year, the rig count took a nosedive with just five rigs in operation. It rose to11 in August before taking a consistent downward trend in September.
Analysts have said that there is a need for the deployment of many rigs for exploration as the country’s oil reserves have been stagnated at 37 billion barrels for too long.
Unlike Nigeria, some African countries did well during the period as these countries would likely build additional reserves to help increase production capacity in the coming years.
Before the completion of Nigeria’s Petroleum Industry Act (PIA), foreign investors had visited African countries which seem more attractive than Nigeria but with the PIA in place, efforts will be made to make Nigeria attractive to both local and foreign investors particularly as it would lead to creation of contract, local contents, jobs and other multiplier effects. It is expected that the PIA would have a positive impact on exploration.
