According to the Organisation of Petroleum Exporting Countries (OPEC), Exploration and production (E&P) activities, which determine reserves and volume addition, have fallen significantly, as only nine active rigs operated in Nigeria last year, The Guardian reports.
According to OPEC, Nigeria’s active rigs dropped from the 29 in 2015 to nine in 2016, but had earlier recorded 59 active rigs in 2013, and 46 in 2014. The development, which was buoyed by militancy activities in the oil-rich Niger Delta and low oil prices, saw Nigeria’s crude production down to about 800,000 barrels daily by mid-year 2016.
To underscore the decline in E&P, the National Bureau of Statistics (NBS), also recorded a decline in the number of exploratory wells from the 23 in 2013 to just eight at the end of 2016. It said further that the number of well developments also fell from 117 in 2013 to 45 in 2016, and drilled wells from 156 to 130 during the period.
The Nigeria Offshore Market Report identified the four largest drilling contractors in 2014 and 2015 in Nigeria as Transocean, Shelf Drilling, Pacific Drilling and Seadrill. The report added that producing fields are estimated to account for half of Nigeria’s offshore market from 2016-2019, with the largest being Agbami-Ekoli, Bonga, Usan, Akpo and Erha.