There are major indications that oil exploration and production have dropped in Nigeria, as the rig count dipped from 16 to eight, according to the June 2020 report of the Organisation of Petroleum Exporting Countries (OPEC) just released.
In the latest report, OPEC, indicated that not much funds were invested to drive activities in the industry.
Investigations indicated that the development was driven by low crude oil prices in the global market which damped domestic upstream activities.
Similarly, the report further showed that the basket rig count of the OPEC-member states also dropped to 473 from 561, during the period.
The development was partly attributed to the Coronavirus pandemic which has culminated in low oil prices, thus reducing investment in the industry.
However, in its ‘Upstream Investment Plans’, OPEC stated: “On top of the huge capacity maintenance costs that member-countries are faced with, they continue to invest in new projects and reinforce their commitment to the oil and gas market as well as to the security of supply for all consumers.
“Needless to say, this is only a reflection of OPEC’s well-known policy that is clearly stated in its Long-Term Strategy and its Statute. In the medium-term, about 160 projects, with an overall estimated cost of some $156 billion, are being undertaken by OPEC member-countries.”