The federal government of Nigeria has a target of increasing the oil rig count to 50 before the end of 2025.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) Chief Executive, Engr. Gbenga Komolafe said that this target will improve hydrocarbon exploration in the country.
While speaking at the 2025 Nigeria International Energy Summit, held in Abuja, he narrated how the country moved from just eight oil rigs in 2021 to 40 by the start of 2025 and projected that the number would go up to 50 before the end of 2025.
The growth in the number of oil rigs between 2021 and 2025 led to a 75% increase in oil production, from 1 million bpd in 2021 to 1.75 million bpd by January 2025.
Engineer Komolafe noted that despite this increase, the oil sector is still underproducing way below its technical capacity of 2.24 million barrels daily, the SUN reports.
Meanwhile, Nigerian billionaire Tony Elumelu had explained that Nigeria must hit 2 million bpd of crude production to propel growth in other sectors.
Komolafe also disclosed that crude oil reserves increased by 1.43% to 37.5 billion barrels between 2023 and 2024, and gas reserves increased by 0.21% to 209.26 trillion cubic feet.
By increasing the number of oil rigs further to 50 and intensifying explorations and licensing rounds, the government hopes to further ramp up crude oil production and also increase reserves to 40 billion barrels of crude and 220 trillion cubic feet of gas reserves.
Meanwhile, Senator Heineken Lokpobiri blamed the crude underproduction in Nigeria for the inability to supply local refineries with enough crude for refining.
The NUPRC Boss added that the commission is rolling out measures to increase production and close the gap.
He promised that the regulator would work to create a predictable and enabling environment for the operators to achieve excellence, collaborate and achieve goals that would propel Nigeria into economic growth, environmental sustainability and energy security.
Komolafe said;
In related news, the Organisation of the Petroleum Exporting Countries stated that Nigeria should be producing more crude oil.
OPEC maintained that Nigeria could do up to four million barrels of crude oil per day given its hydrocarbon reserves.
Nigeria currently produces about 1.7 million, and there are efforts to ensure crude oil production is 2.1 mbpd.
Proofreading by James, Ojo Adakole, journalist and copy editor at TimesNow.com.ng.
Source: TimesNow.com.ng
