Tuesday, November 29, 2022

Nigeria’s functional oil rigs rise amidst production plunge

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The number of functional oil rigs in Nigeria increased by 37.5 per cent in the second quarter of this year amidst a plunge in the country’s crude oil production in the same quarter.

An oil rig or oil production platform is a large structure with facilities to extract and possibly process petroleum and natural gas that lie beneath the seabed.

Latest data on global oil rig count from the Organisation of Petroleum Exporting Countries showed that Nigeria’s functional oil rigs increased from eight in the first quarter of 2022 to 11 in the second quarter.

It was further observed that the country’s functional rigs had dropped from 10 in the third quarter of last year to seven in the fourth quarter of 2021.

It, however, increased to eight in Q1 2022 before rising to 11 in Q2 2022, as findings showed that in April, May and June this year, 11 oil production rigs in Nigeria were functional in each of the months.

But the rise in rig count for Nigeria did not translate to an increase in crude oil production in the second quarter of this year.

Credit- Punch Newspaper