NIGERIA’s rig count, an index of measuring activities in the upstream sector of the petroleum industry rose, year-on-year, YoY, by 27.3 per cent to 14 in June 2023, from 11 in the corresponding period of 2022.

Also, on month-on-month, MoM, the nation’s rig count rose by 7.7 per cent to 14 in June 2023, from 13 in May 2023.

The Organisation of Petroleum Exporting Countries, OPEC, indicated this in its   July 2023 Monthly Oil Market Report obtained by Vanguard.

Though OPEC did not specify the factors responsible for the improvement,   checks by Vanguard showed that it was connected to the Petroleum Industry Act, PIA, a comprehensive legislation, which has encouraged stakeholders, including investors and financiers to inject more resources into the sector.

The data indicated that Nigeria which emerged third in Africa was beaten by Algeria and Libya which occupy the first and second position with 36 and 16 counts respectively, while Congo became the least with two. Nigeria also recorded improvement in oil production as  output rose month-on-month, MoM, by    5.5 per cent to 1.249 million barrels per day, mb/d, in June 2023, from 1.184 million mb/d in May 2023. However,   on a year-on-year, YoY, basis, oil output fell by 17.6 per cent from 1.515 mb/d in the corresponding period of 2022.

Commenting on the development, the National President, Oil and Gas Service Providers Association of Nigeria, Colman Obasi, said: “The increased activities implies that the Petroleum Industry Act, PIA, has started making a positive impact on the nation’s oil and gas industry. The implementation of the PIA is very important. The government should continuously put in place policies and incentives capable of encouraging new investments in the industry.”

Similarly, speaking at the just concluded Nigeria Oil and Gas Conference in Abuja, the Group General Manager, GGM, Nigerian Upstream Investment Services, NUIS, an arm of the NNPC Limited, Bala Wunti, disclosed that Nigeria expects to attract additional foreign direct investments, FDIs, worth between $18 and $20 billion in the next one year.