Nigeria’s oil industry is showing positive signs with the number of producing fields reaching 246, according to the Federal Government (FG).
This marks a 12 percent increase from 218 producing fields in 2019, data from the Nigerian Upstream Petroleum Regulatory Commission showed.
The NUPRC document, which focused on stability in the oil sector, read in part, “Since 1956, the Nigerian upstream oil and gas landscape has grown with the development and installation of several oil and gas facilities.
“With over 246 producing fields, 2,777 producing strings, 188 production stations/platforms, four gas terminals, five land terminals, 11 FSOs (Floating Storage and Offloading Units), 18 FPSOs (Floating Production Storage and Offloading), and several other facilities at various stages of development, Nigeria is poised to boost production and enhance energy security.”
Explaining the driving forces behind this sustained surge in exploration activities, Gbenga Komolafe, Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), attributed it to the positive impact of Nigeria’s recently enacted Petroleum Industry Act (PIA).
“The PIA is positively impacting as it provides institutional governance, efficient administration, and attractive fiscal regimes while providing for host communities, thus creating a peaceful atmosphere for investment and operations.”
The rise in fields is complemented by an increase in active oil rigs. Figures released by the Organization of the Petroleum Exporting Countries (OPEC) show Nigeria’s oil rigs climbed from 15 in January to 16 in February.
An oil rig/platform is a large structure with facilities to extract and process petroleum and natural gas that lie in rock formations beneath the seabed.
Nigeria, as an oil/gas-rich country, drills crude oil daily from onshore and offshore sources for export.
It earns more than 80 per cent of its foreign exchange from oil; hence, the number of functional oil drilling rigs across the country is vital.
