By Udeme Akpan, Energy Editor
Recent indications reveal a 6.7% year-on-year decline in Nigeria’s oil exploration for September 2024, primarily due to limited investment in the upstream sector of the petroleum industry.
The Organisation of Petroleum Exporting Countries (OPEC) highlighted this trend in its October 2024 Monthly Oil Market Report, noting that the number of rigs deployed for exploration decreased from 15 in September 2023 to 14 in September 2024.
However, on a month-on-month basis, the exploration figures remained unchanged, with 14 rigs deployed in both September and August 2024.
OPEC reported that Algeria led in exploration activities with 43 rigs, while Equatorial Guinea had none.
While OPEC did not specify the reasons for Nigeria’s decline, sources indicated that low investment levels, coupled with ongoing divestments by International Oil Companies (IOCs), played a significant role.
Nigeria holds approximately 37 billion barrels of proven oil reserves and 209 trillion standard cubic feet of proven natural gas reserves. Efforts to increase these reserves have seen limited success over the years.
During the recent African Oil Week (AOW) in Cape Town, South Africa, Engr. Gbenga Komolafe, the Commission Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), announced that Nigeria is working to finalize its 2024 License Round.
Komolafe emphasized the country’s dedication to promoting transparency, regulatory efficiency, and a favorable business climate for investors. He highlighted the strategic blocks available for licensing, showcasing Nigeria’s significant untapped potential in hydrocarbons.