Nigerian oil rigs slide to 17, OPEC records plus 12

 Nigeria ended the year 2019 on a slightly negative note as its rig count witnessed a decrease to 17 as against 20 rig count last month, at a time the 14-member Organisation of Petroleum Exporting Countries (OPEC) recorded an addition of  12 rig counts while the total world rig count increase by just one.

Data obtained from Baker Hughes Incorporated and OPEC showed all through 2019 Nigeria’s oil rig, which depicts the level of oil production activities by operators have been hovering around 16 rigs count, a sharp decline from a three-year high of 35 rigs count recorded in February 2018.

Rig count is largely a reflection of the level of exploration, development and production activities occurring in the oil and gas sector.

According to OPEC’s report, Africa biggest oil-producing country recorded 17 oil rigs in the last month of 2019, which was three rigs less of what was obtained in November 2019, an indication of decreasing exploration activities.

Nigerian Association of Petroleum Explorationists (NAPE) recently alerted the nation about the risk of low exploration activities in the petroleum industry as well as the continuous depletion of the country’s crude reserve.

NAPE had last month warned that the reduction in hydrocarbon exploration and steady depletion of the oil reserves could drive Nigeria into the risk of long-term disruption to oil and gas supplies, power generation, the collapse of industries and significant loss of revenue.

 NAPE’s outgoing President and staff of Agip, Ajibola Oyebamiji, in a pre-annual conference meeting with energy correspondents in Lagos stated that the nation’s oil and gas business was being hampered by several factors, including long procurement and contracting cycles, insecurity, oil theft and illegal refining, saying, the later even poses a bigger threat to the sector than the fall in oil price.

Also, analysts at the Lagos-based investment bank United Capital in a 2020 outlook, report said the newly signed Deep Offshore and Inland Basin Production Sharing Contract (DOIBPSC) Act could have a negative effect on investments, as IOCs move  exploration to countries with better fiscal terms or channel resources towards American shale production.

The 14 OPEC members recorded a total of 587 rig counts in March as against 575 recorded the previous month with Saudi Arabia and Algeria both recording  a highest marginal increase of  8 rig counts and 3 rigs count respectively.