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Nigeria’s Crude Oil Production Rigs Drop By 37.5%
The number of functional crude oil production rigs in Nigeria decreased by 37.5per cent to just 10 operational rigs in March, 2022, the Organisation of Petroleum Exporting Countries (OPEC) has said.
An oil rig, offshore platform, or oil and/or gas production platform is a large structure with facilities to extract, and process petroleum and natural gas that lie in rock formations beneath the seabed.
Nigeria is a strong member of OPEC and has been championing activities of the group for decades, though failing lately in meeting its monthly oil production quota as approved by the organisation.
Data from OPEC’s latest Monthly Oil Market Report for April 2022, last Friday, showed that Nigeria’s operational oil rigs had been on the decline since 2019.
In its world rig count and units, OPEC stated that in 2019 Nigeria had an average of 16 functional rigs, but this dropped to 11 in 2020 and crashed further to an average of seven in 2021.
In fact, the organisation revealed that the country’s rigs dropped to as low as five in the second quarter of 2021, before picking up to 10 in the third quarter of same year, but eventually dropped again to seven in the fourth quarter of last year.
It moved up to eight functional rigs in the first quarter of this year, going by OPEC data, as the organisation’s report further showed that Nigeria’s oil rigs were eight in February, 2022.
The rig count appreciated marginally in March this year to 10.
Hence, the fluctuations in Nigeria’s rig counts indicated that it dropped by from an average of 16 in 2019 to 10 in March, 2022, representing a decrease of 37.5per cent.
Meanwhile, the report showed that aside from Iran which had maintained 117 rigs since 2019, some other oil-producing nations witnessed varying degrees of declines in their rig counts.
The rig counts of Saudi Arabia, Algeria, and the United Arab Emirates, for instance, also dropped from 115, 45 and 62 to 74, 30 and 41, respectively between 2019 and March, 2022, according to OPEC data.
However, countries such as Angola, Venezuela and Libya, for instance, saw a marginal rise in the number of functional oil rigs in their various domains.
Amidst the drop in oil rig count for Nigeria, the country has also suffered massive decline in its crude oil production making it unable to meet its OPEC approved oil production quota since this year.
Operators in Nigeria’s oil and gas sector had also attributed the drop in oil production to oil theft, while the government had raised concerns about the exit of international oil companies from Nigeria due to the global push for net zero carbon emission.
Also an analysis of the OPEC report showed that Nigeria’s oil production had been falling since January this year.
It was observed that while the country produced 1.413million barrels of crude oil daily in January, this dropped to 1.378million barrels per day in February, and plunged further to 1.354million barrels per day in March.
The situation confirmed concerns by both government officials and International Oil Companies operating in Nigeria that crude oil production in the country had been on the decline since 2021.
On March 24, 2022, for instance, the total value of Nigeria’s crude oil stolen between January 2021 and February 2022 was about $3.27billion (representing N1.361trillion at the official exchange rate of N416.25 to the dollar), according figures from the Nigeria Upstream Petroleum Regulatory Commission.
International oil companies and their counterparts in Nigeria also stated recently that the massive oil theft across the country posed a threat to not just their existence, but to the Nigerian economy.
But NNPC’s Group Managing Direction, Mele Kyari, had announced recently that measurable outcomes against the massive crude oil theft in the Niger Delta would be visible in three weeks’ time.
Kyari had said, “As we speak now there is massive disruption to our operations as a result of the activities of vandals and criminals along our pipelines in the Niger Delta area.
“This has brought down our production to levels as low as we have never seen before. Today we are doing less than 1.5million barrels per day simply because some criminals have decided that they should have some infractions on our pipelines.”
Nigeria’s oil production quota by OPEC has revolved around 1.8million barrels per day.
The country has repeatedly missed this target due to oil theft.
“And that clearly is the biggest form of business disruption that we are facing today,” the NNPC boss had stated.
He added, “This kind of engagement, the certifications that we have today around our systems and processes should be able to respond to this. And part of the response is to bring in the best framework possible to contain this situation.
“I’m happy to tell us that enormous work is going on between us and the Federal Government recognised security agencies, our partners, particularly those on the corridors that are impacted, and also the community members.
“And I’m very optimistic that within the next two to three weeks some very measurable outcomes will come so that our businesses will continue. As we speak now, the Nigerian Navy is launching a massive operation to contain oil theft in the Niger Delta.”
President Bola Tinubu has approved the nomination of four new members to the Governing Council of the Nigerian Content Development and Monitoring Board (NCDMB).
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, in a statement yesterday, said the appointment is to fill existing vacancies and strengthen the board’s capacity.
The statement said the approved nominees are Mr. Olusegun Omosehin of the National Insurance Commission and Engr. Wole Ogunsanya of the Petroleum Technology Association of Nigeria.
Tinubu also endorsed the nomination of Sam Onyechi, who represents the Nigerian Content Consultative Forum and Barrister Owei Oyanbo from the Ministry of Petroleum Resources.
The President encouraged the new members to leverage their expertise and dedication to enhance local content development within Nigeria’s oil and gas industry.
It added, “The nominations arose from the exit of previous institutional representatives from the Governing Council.
“The NCDMB Governing Council, established under Section 69 of the Nigerian Oil and Gas Industry Content Development Act, 2010, comprises representatives from key institutions.
“These include the Ministry of Petroleum Resources, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian National Petroleum Company Limited, the Petroleum Technology Association of Nigeria, the Council for the Regulation of Engineering in Nigeria, the Nigerian Content Consultative Forum, and the National Insurance Commission.”
The Niger Delta Development Commission (NDDC) has announced plans to construct additional hostels, rehabilitate roads, and enhance power supply in the University of Port Harcourt (UNIPORT).
NDDC’s Managing Director, Dr Samuel Ogbuku, disclosed this during a visit to the commission’s headquarters in Port Harcourt, yesterday by a delegation from the UNIPORT’s Governing Council.
Ogbuku stated that the NDDC had committed to upgrading facilities at UNIPORT as part of efforts to foster partnership with educational institutions across the Niger Delta.
According to him, the implementation of additional projects at the university forms part of a broader strategy to improve education standards in the region.
“Aside from the construction of new hostel blocks and installation of a 300 KVA solar inverter system, the NDDC will also facilitate more projects in the university.
“The commission will also deploy its engineers to assess the condition of UNIPORT’s roads and hostels for potential rehabilitation,” he said.
Ogbuku noted that upon completion, the projects would add to various initiatives previously undertaken by the commission at the university.
“These and other projects reflect our commitment to actualising President Bola Tinubu’s Renewed Hope Agenda in the Niger Delta region,” he added.
He reaffirmed the NDDC’s dedication to fostering development and strengthening partnerships across the region.
Earlier, Sen. Mao Ohuanbunwa, Chairman of UNIPORT’s Governing Council, who led the delegation commended the current leadership of the NDDC for its achievements in accelerating development in the Niger Delta.
He highlighted the university’s infrastructural challenges, noting that it lacked adequate facilities to accommodate its growing student population, and appealed for the NDDC’s support in addressing the shortfall.
“Currently, UNIPORT has a total student population of about 50,000, while its hostel accommodation capacity can only cater for 5,000 students.
“We therefore urge the NDDC to assist in the construction of additional hostels, improve transportation facilities, and facilitate the acquisition of gas turbines to enhance power supply for our students,” Ohuanbunwa pleaded.
The Vice Chancellor of UNIPORT, Prof. Owunari Georgewill, commended NDDC for its impactful projects across the Niger Delta and extended an invitation to the commission to participate in the institution’s forthcoming 50th anniversary celebrations.
The Senate has rejected a motion to rename the Independent National Electoral Commission (INEC) headquarters after the former chairman of the defunct National Electoral Commission, late Prof Humphrey Nwosu.
Nwosu presided over the June 12, 1993, presidential election, which was truncated by the former military President, General Ibrahim Babangida (rtd).
The election which was won by the late business mogul, Chief MKO Abiola, was adjudged to be the freest and fairest in the electoral history of Nigeria.
The motion to rename INEC after Nwosu was re-sponsored by Senator Enyinnaya Abaribe yesterday after lawmakers threw it out last Wednesday.
Abaribe called for posthumous national honours to be conferred on Nwosu in recognition of his role in Nigeria’s democratic evolution.
However, the proposal sparked a heated debate once again, with lawmakers deeply divided over Nwosu’s legacy.
Senator Osita Ngwu acknowledged that Nwosu operated under a military regime, which restricted his ability to announce the results.
He argued that “there was no way he would have announced the results with a gun to his head. That doesn’t change the fact that some of us see him as a hero.”
Senator Austin Akobundu, however, described it as most uncharitable for lawmakers to dismiss Nwosu’s contributions, insisting that he deserved a place in Nigeria’s hall of honour.
On the other hand, several senators like Senator Jimoh Ibrahim dismissed the idea outright, questioning why the Senate should honour someone who failed to announce the results insisting that “nothing should be named after him”.
Senator Cyril Fasuyi argued that history does not reward efforts, but only results.
“As long as he did not announce the result, whether under duress or not, I am against naming INEC headquarters after him,” he submitted.
Also, Senator Sunday Karimi criticised Nwosu for lacking the courage to speak out, while Senator Afolabi Salisu warned that immortalising him would undermine the memory of MKO Abiola, the widely accepted winner of the June 12, 1993, annulled election.
“Any attempt to do anything beyond a one-minute silence is to rubbish Abiola’s legacy,” he tendered.
After intense deliberation, most senators rejected the motion through a voice vote.
They, however, agreed to honour him with a one-minute silence and extend condolences to his family, effectively dismissing the other prayers to immortalise Nwosu.