By Adeleye Kunle
THERE were indications yesterday that oil exploration has increased in Nigeria, as the country’s rig count increased by 120% year on year, YoY, to 11 in June 2022, from five in the same period in 2021, according to the Organization of Petroleum Exporting Countries, OPEC.
The rig count is a key indicator of exploration and production activity in the global oil and gas industry.
However, the nation’s rig count remained flat month on month, MoM, when compared to 11 recorded in the preceding month of May 2022.
According to the OPEC July 2022 Monthly Oil Market Report, MOMR, obtained by Vanguard, Algeria emerged as the highest African oil producing nation with 33 rigs, while Libya emerged as the lowest with only two.
In terms of oil production, the report estimates Nigeria’s output, excluding condensate, at 1.16 million barrels per day, mbpd, in June 2022, a 7.6 percent decrease from the 1.3 mbpd recorded in the same period in 2021. According to the report, Angola produced the most crude oil in Africa (1.18 million bpd), while Equatorial Guinea produced the least (91,000 bpd). The report did not explain why Nigeria’s oil production is so low, but industry operators have blamed it on increased pipeline vandalism, oil theft, and illegal refining in the Niger Delta.
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