25.3 C
Akure
Saturday, June 6, 2020

Nigeria’s active oil rigs fall by 24%

Categories

Share

The number of active oil rigs in the country fell by 23.8 percent to 14 in April amid the coronavirus-induced collapse in prices and demand for crude.

The country recorded the second biggest decline in the number of rigs among its peers in OPEC in April, after Venezuela, whose rig count plunged by 11 to 14.

Rig count in Iraq dropped by four to 70; fell by three in United Arab Emirates to 65; and dipped by two in Gabon to six. But Algeria’s rigs rose by eight to 42, while those of Kuwait rise by 4 to 54 and Saudi Arabia rose by two to116

Rig count is largely a reflection of the level of exploration, development and production activities occurring in the oil and gas sector.

The slump in oil prices caused by the coronavirus pandemic has forced many companies, including international oil companies, operating in the Nigerian oil industry to slash their capital budgets and suspend some projects.

The Chief Executive Officer of International Energy Services Limited, Dr Diran Fawibe, said, the oil service sector will be badly affected because if projects are suspended or cancelled, there is no way the oil companies will make use of service companies.