Nigeria, Africa’s biggest oil producer completed 81 oil wells from neutral zone
compared to 76 oil wells recorded in 2017, a new report by the Organisation of Petroleum Exporting Countries (OPEC) has shown.
An oil well is a hole dug into the earth that serves the purpose of bringing oil or other hydrocarbons – such as natural gas – to the surface. Oil wells almost always produce some natural gas and frequently bring water up with the other petroleum products.
OPEC’s 2019 Annual Statistical Bulletin revealed that among Africa countries apart from Algeria who recorded the highest oil wells completed from neutral zone in 2018 of 277; Nigeria recorded the second highest oil wells completed of 81 wells which increased by 5 wells compared to 76 wells completed in 2017.
“Thanks to favourable oil prices most OPEC countries were able to maximize investment in drilling new wells which relies on the skilful usage of financial, technological, and human resources while also maximizing capital investment,” Charles Akinbobola, energy analyst at Sofidam Capital Limited.
Among African countries, Congo recorded the third highest oil wells of 8o in 2018 while Angola Gabon and Libya recorded 32 wells, 13 wells and 9 wells respectively.
In 2018, Venezuela recorded the highest oil wells completed of 710, followed by OPEC’s kingpin
Saudi Arabia who recorded 599 wells while Kuwait and United Arab Emirates (UAE) recorded 488 wells and 369 wells respectively.
OPEC members completed a total of 3,159 wells in 2018 which,increased by 166 wells from 2993 wells in 2017 while the world in general completed 70,511 in 2018 compared to 65,618 in 2017.
In the last eight years, Nigeria’soil reserves and daily production had remained almost stagnant
hovering in the region of 37 billion barrel and two million barrel production day (bpd) respectively in the last five years, as data from
OPEC showed Nigeria reserves and daily production have remained almost stagnant.
A 10-year target set by the Federal Government to boost crude oil reserves to 40 billion barrels and daily production to four million by 2020 is becoming unrealistic as analysts says corruption and government shenanigans have decrease growths in the sector.
According to statistics from OPEC, Nigeria oil reserve decreased to 36.972 billion in 2018
from 37.453 billion recorded in 2017.
In 2014, Nigeria’s oil reserve stood at 37.448 billion before sliding down to 37.062 in 2015 while
in 2016 it stood at 37.453 billion.
“Just like savings and earnings, the oil reserves and daily production are vital to creating energy security, increasing the income from crude oil, boosting economic development and showcasing an index that is capable of wooing investors into the country,” Adeoluwa Martins, Lagos based oil
and gas analyst told BusinessDay.
Also, data from OPEC’s annual report revealed Nigeria average daily oil production increased to
1.601 million in 2018 from 1.536 million in 2017. In 2014, Nigeria’s average oil production stood at 1,807 million although it decline again to 1.748 million in 2015. In 2017, oil production moved up to 1.6 million from the 1.4 million recorded in 2016.
Similarly, the level of active rigs which indicates the level of exploration, development and production activities occurring in a nation’s oil and gas sector as at2018 stood at 32 from 13 rig count recorded in 2017.
Recall in 2010, Nigeria’s active rig count stood at 35, it moved to 38, 44 and 59 in 2011, 2012 and 2013. The figure dropped to 46 in 2014, 29 in 2015 and eventually crashed to only nine in 2016.
