Nigeria’s Oil exploration drops by 55.34 % in Q1 ‘21
OIL MARKET: Anxiety as prices surge to $90.92 per barrel 
– By Alison_Godswill

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Nigeria’s Oil exploration drops by 55.34 % in Q1 ‘21

 

.Rig count dips to 19

By Alison Godswill

There are indications that oil exploration dropped by 55.34 percent in the first quarter, January – March 2021 as Nigeria’s rig count dips to 19, according to data collated from recent reports of the Organisation of Petroleum Exporting Countries, OPEC.

The rig count, a major index of measuring activities in the upstream sector had stood at 65 in the corresponding period of 2020, before dropping to 19, mainly due to the delay in the passage of the nation’s Petroleum Industry Bill, PIB, and prolonged Coronavirus pandemic, which slowed down activities in the industry.

A breakdown showed that the nation deployed six, seven, and six rigs in January, February, and March 2021, against 21, 23, and 21 deployed in the corresponding period of 2020.

This showed that Nigeria did not invest many resources into exploration during the period under review, meaning that its reserves are being exploited without much addition.

Consequently, in its report obtained by Vanguard, the Department of Petroleum Resources, DPR, puts the nation’s oil reserves at 37 billion barrels, even though the government had earlier planned to hit 40 billion barrels by 2020.

However, the Minister of State for Petroleum Resources, Timipre Sylva, had recently promised that the PIB would be passed in April 2021.

The Speaker of the House of Representatives,  Femi Gbajabiamila, had also announced that the bill would be passed in April, adding that consultations on the bill will transcend the public hearing.

Nevertheless, Victoria Ibezim-Ohaeri, Director, Spaces for Change, who stressed the importance of the early passage, including enhancing investment, said: “The Petroleum Industry Bill (PIB) 2020, a proposed law seeking to introduce far-reaching industry reforms in the Nigerian oil and gas sector. Among other objectives, the bill aims to establish good governance, best practices, and ease of doing business in the industry by clarifying the roles and responsibilities of officials and institutions, enabling frontier exploration, mandating improved environmental compliance, and transforming NNPC into a commercially viable enterprise.”

She added: “The laws regulating the oil and gas industry date back to pre-independence and pro-democracy rule in Nigeria when laws were made without inclusion and in the light of the peculiarities at that time. With the advancements in technology, the volatility of oil prices, and climatic changes influencing the driving forces of the global economy, it has become imperative to review extant laws to bring them in alignment with current realities.”

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