Nigeria’s oil exploration dropped by 6.7% year-on-year (YoY) in September 2024, with the number of rigs falling from 15 to 14, according to the latest October 2024 Monthly Oil Market Report by the Organisation of Petroleum Exporting Countries (OPEC). This decline highlights the continued reduction in investment within Nigeria’s upstream petroleum sector.
While oil exploration remained unchanged month-on-month (MoM), staying at 14 rigs in September and August 2024, the year-on-year figures signal a troubling trend. In comparison to its African counterparts, Algeria led the region with 43 rigs, while Equatorial Guinea had none.
The drop in Nigeria’s exploration activity is tied to decreased investments, largely driven by ongoing divestments by International Oil Companies (IOCs). This situation has stalled efforts to boost the nation’s proven reserves of 37 billion barrels of oil and 209 trillion standard cubic feet (Tscf) of natural gas.
Despite these challenges, Engr. Gbenga Komolafe, the Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), remained optimistic about the nation’s future prospects. Speaking at the African Oil Week (AOW) in Cape Town, South Africa, Komolafe highlighted Nigeria’s ongoing 2024 License Round and reiterated the country’s commitment to transparency, regulatory efficiency, and creating a business-friendly environment for investors.
Nigeria is working to attract new investments by showcasing its untapped potential in hydrocarbons, with a particular focus on strategic blocks available for licensing. However, it remains to be seen if these efforts will reverse the declining exploration trend.
