•Reverses to uptrend

By Udeme Akpan, Energy Editor

NIGERIA’s rig count, a major index of measuring activities in the upstream sector, rose year-on-year, YoY to 14 in November 2023, from 10 recorded in the corresponding period of 2022, indicating an increase of 40 per cent.

But on month-on-month, MoM, the nation’s rig count increased to 14 in November 2023, from 13 recorded in October 2022, indicating an increase of 7.7 per cent, according to data obtained from the Monthly Oil Market Reports of the Organisation of Petroleum Exporting Countries, OPEC.

The checks also indicated that the rig count is rising for the first time since September when it hit the roofs at 15, before dropping to 13 in October 2023.

The Organisation did not provide factors responsible for the development, but checks by Energy Vanguard pointed to the positive impact of the nation’s Petroleum Industry Act, PIA, a comprehensive legislation put in place to attract and retain investors in the industry.

However, the latest report showed that other African countries, especially Algeria and Libya recorded 47 and 18 rig counts respectively while Gabon came last with 4 rigs only.

Commenting on the development, the National President, Oil and Gas Service Providers Association of Nigeria, Maxi Colman Obasi, maintained that the rig count would likely continue to increase, if conscious efforts are made to attract serious investors.

Similarly, the Commission Chief Executive, Nigerian Upstream Petroleum Regulatory Commission, NUPRC, Engr. Gbenga Komolafe, said: “PIA is positively impacting as it provides institutional governance, efficient administration and attractive fiscal regimes while providing for host communities.”

On his part, the Founder and Executive Chairman of AA Holdings, Mr. Austin Avuru however    regretted that investment into Nigeria’s oil and gas industry dropped by 77.3 per cent to $5 billion in 2021, from $22 billion in 2014, due mainly to increased divestment by the International Oil Companies, IoCs.

He said: “The IoCs are leaving and will continue to divest. The IoCs are not hiring and investing as much as they used to invest in the oil and gas industry. It is only a few Independents that are still investing.

“The nation’s oil and gas reserves have been standing at more than 30 billion barrels and 203 trillion cubic feet respectively for too long. We need to increase investment to hit the 40 billion barrels reserves and 600 trillion standard cubic feet of gas in the coming years. That would require the deployment of many rigs.”