Financial Energy Review
…………..by Victor Egbo………
Nigeria rig count, an index of measuring activities in the upstream sector, has risen on a year-on-year, YoY basis by 27.3 per cent to 14 in July 2023, from 11 in the corresponding period of 2022.
But on a month-on-month, MoM basis, the count remains flat at 14 in July 2023, against June 2023.
The Organisation of Petroleum Exporting Countries, OPEC disclosed this in its August 2023 Monthly Oil Market Report, MOMR, adding that Algeria with 35 rigs and Congo with two emerged as the highest and least rig-deploying nations in Africa respectively.
However, the report did not state factors responsible for the development, however it can be attributed to the positive impact of the nation’s Petroleum Industry Act, PIA, a comprehensive legislation targeted at restructuring the oil and gas industry, attracting new investments and enhancing exploration and production.
It indicated that unlike in the pre-PIA era, the oil and gas companies have started initiating a few projects, thus culminating in the deployment of additional rigs.
Further more this shows that the deployment of more rig, if sustained, would lead to the making of new oil and gas finds, increasing of reserves and production capacity of Nigeria.
The National President, Oil and Gas Service Providers Association of Nigeria, Mazi Colman Obasi, has called on stakeholders, especially the federal government and investors to invest more resources in order to increase the nation’s rig count.
Speaking at the just-concluded Society of Petroleum Engineers conference in Lagos, the Group Chief Executive Officer, NNPC Limited, Mallam Mele Kolo Kyari, said: “In the past few years, the Nigerian energy industry has witnessed strategic transformation which has given birth to viable industry legislation, the PIA, and a long-term gas-centered energy transition plan. On the policy front, we have also seen the emergence of the incorporation of our national oil company from NNPC to NNPC Limited. The PIA also provides for NNPC Ltd to engage in the renewable energy business; and the Nigerian Climate Act for mainstreaming climate change actions to achieve low emissions, inclusive green growth, and sustainable economic development.
Financial Energy Review gathered that Nigeria is not transitioning away from the hydrocarbons, but to increase in the footprint of alternative cleaner, energy sources in the foreseeable future amid fossil fuel dominance. This is expected to get the nation to the desired destination.
‘”This is the reason that NNPC Limited has identified gas as a transition fuel and we are expanding our gas development and gas infrastructure across the country to increase energy accessibility. Today, Nigeria has about 209.5 trillion cubic feet, TCF of natural gas reserves with a potential upside of up to 600 TCF, and this is an enormous resource that would drive a cleaner and affordable energy vision. Other alternative energy sources such as solar and wind are faced with technology limitations. They are still not affordable and cannot meet the high energy demands of our industries, cities and remote environments.
“NNPC Limited plans to sustain and increase our aggressive gas development and gas transportation projects to achieve affordable and clean energy which is the United Nations Sustainable Development Goal (SDG), Goal No. 7, as our strategic energy plan towards finding a balance for the energy trilemma.”
