Nigeria’s Oil Rig Count Jumps 762% in 4 Years

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Odekunle Doyin

Nigeria’s crude oil rig count has surged from just eight to 69 rigs in four years, representing an astounding 762.5 per cent increase, according to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The development, the commission said, reflects renewed investor confidence and growing momentum in the country’s oil and gas industry.

$40 Billion in New Oil Field Investments

In a statement titled “Rising Rig Count: A Testament to the Renewed Vigour in Nigeria’s Upstream Oil and Gas Sector”, NUPRC’s spokesman, Eniola Akinkuotu, said the commission approved 79 Field Development Plans (FDPs) between 2024 and 2025, worth $39.98 billion in combined investments $20.55 billion in 2024 and $19.43 billion in 2025.

The commission projected that Nigeria’s crude oil production will rise from the current 1.65 million barrels per day (mbpd) to 2.5 mbpd by 2027.

Crude Theft Down by 90%

NUPRC disclosed that oil theft has dropped by 90 per cent, crediting the success to the combined operations of national security forces and private contractor, Tantita Security Services Nigeria Limited.

“The latest rig count of 69, comprising 40 active rigs, eight on standby, five on warm stack, four on cold stack, and 12 on the move represents a 762.5 per cent increase in barely four years,” the statement read.

400 Dormant Oil Fields Identified

The commission revealed that it had identified 400 dormant oil fields and compelled inactive companies to revive exploration or relinquish idle assets.

“We successfully identified 400 dormant oil fields and have propelled complacent operators to take quick action,” NUPRC said, adding that the effort aligns with President Bola Tinubu’s investment-friendly reforms.

Post-PIA Reforms Deliver Results

Listing its 16 major post-Petroleum Industry Act (PIA) achievements, NUPRC said it had exceeded revenue targets for three consecutive years by 18.3% in 2022, 14.65% in 2023, and 84.2% in 2024.

The agency noted that it had also reformed licensing rounds, removing political interference and strengthening transparency.

Under the new “Drill or Drop” policy, unexplored oil acreages will be relinquished to make room for serious investors.

Major Divestments and Deep Offshore Focus

NUPRC confirmed several multi-billion-dollar divestments in 2024, including transactions involving Agip, Oando Energy Resources, Equinor, Chappal Energies, Mobil Producing Nigeria Unlimited, Seplat Energies, and Shell.

“These divestments represent strategic portfolio reordering, with increased focus on deep offshore development,” the statement explained.

24 New Regulations and Gas Flare Projects

To strengthen compliance with the PIA, NUPRC said it had developed 24 new regulatory frameworks, with 19 already gazetted.

On gas utilisation, the commission announced the completion of flare site awards under the Nigerian Gas Flare Commercialisation Programme (NGFCP), expected to attract $2.5 billion in new investments and significantly cut gas flaring nationwide.

Host Communities Get ₦122.34bn Support

NUPRC disclosed that oil companies have remitted ₦122.34 billion and $168.91 million into the Host Community Development Trusts, funding over 536 projects including schools, health centres, roads, and vocational training centres across the Niger Delta.

“These projects are direct benefits of the PIA framework, designed to improve living conditions and foster development in host communities,” the statement added.