Nigeria’s Oil Exploration Drops 6.7% Due to Limited Investment

There were indications, yesterday, that oil exploration dropped year-on-year, by 6.7 percent in September 2024, due to limited investment in the upstream sector of the Nigeria’s petroleum industry.

Vanguard reports that the Organisation of Petroleum Exporting Countries (OPEC), indicated the development in the number of rigs deployed for operations during the period.

In the latest October 2024 Monthly Oil Market Report, OPEC indicated that on year-on-year basis, the nation’s oil exploration decreased by 6.7 percent in September 2024, as the rigs dropped for exploration fell to 14, from 15 recorded in the corresponding period of 2023.

But on month-on-month basis, the nation’s oil exploration remained flat as the number of rigs deployed remained flat at 14 in September 2024, same as recorded in the preceding month of August 2024.

According to OPEC, Algeria emerged the highest nation in terms of exploration with 43 rigs while Equatorial Guinea came last with zero rigs.

Although OPEC did not provide factors responsible for the development, checks by Vanguard pointed to low investment in Nigeria during the period, characterized by continued divestment by the International Oil Companies.