By Udeme Akpan, Energy Editor

Nigeria’s rig count, a major index of measuring activities in the upstream sector, dropped month-on-month, MoM by 13.3 per cent to 13 in October 2023, from 15 recorded in the preceding month of September 2023.

This showed that there was limited investment and activities during the period, according to the November 2023 Monthly Oil Market Report, MOMR of the Organisation of Petroleum Exporting Countries, OPEC, released yesterday.

But on year-on-year, the report indicated that the nation’s rig count rose by 62.5 per cent to 13 in October 2023, from eight recorded in the corresponding period of 2022.

However, the report showed that Algeria was the leading African nation with 43 rigs while Gabon came last with only two rigs.

Nigeria’s oil output hits 1.416m bpd

It also indicated that the nation’s output rose marginally MoM by 1.2 per cent to 1.416 million barrels per day, bpd in October 2023, from 1.399 million bpd in the preceding month of September 2023, according to data obtained from secondary sources.

But based on data collected from official sources, Nigeria’s oil output rose marginally MoM by 0.29 per cent to 1.351 million bpd in October 2023, from 1.347 million bpd, recorded in September 2023.

PIA driving activities — NUPRC

Commenting on the development, the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, said the nation has recorded increased activities, mainly because of the positive impact of the Petroleum Industry Act, PIA, a comprehensive legislation, targeted at increasing investment in the oil and gas industry.

In his presentation – Energy Transition Regime: Leveraging Investment Opportunities in the Nigerian Petroleum Sector – at the just-concluded African Oil Week, AOW, in Cape Town, South Africa, obtained by Energy Vanguard, he stated: “The PIA is positively impacting as it provides institutional governance, efficient administration, and attractive fiscal regimes while providing for host communities, thus creating a peaceful atmosphere for investment and operations.”

NUPRC partners TGS-Petrodata

Already, the NUPRC boss disclosed that the Commission is partnering with TGS-Petrodata, a globally renowned organization to provide data, capable of enhancing clarity to investors.

He said: “We are currently partnering with TGS-Petrodata to acquire about 56,000 Square kilometers of 3D Seismic Gravity data in water depths ranging from 40 to 4,000 m to further de-risk the Niger Delta deep and Ultra Deep Offshore.

“The government is not paying for the provision of these data. However, the government stands to generate additional revenue. The investors would pay for the data and the revenue is to be shared by the government and TGS.

“Due to the specialised nature of the Geophysical Survey Vessel to be used for the acquisition of the 3D seismic and gravity data, the Nigerian Content Development and Monitoring Board, NCDMB, granted no objection to TGS-PD to deploy the facility.

“Therefore, the 3D seismic and gravity data belongs to the Nigerian Government. Based on section 71(7) of the PIA, the Commission and Federal Government of Nigeria shall benefit from the revenue that will be generated from the data use license that will be granted to interested exploration companies by TGS-PD.”

Similarly, the National President, Oil and Gas Service Providers Association of Nigeria, OGSPAN, Mazi Colman Obasi, said: “Nigeria has huge potential, but we need to attract new investments to build additional reserves as well as increase our producing capacity.”