News
Nigeria’s Rig Count Drops 49.5% To 53
There are indications that oil and gas explorations dropped in Nigeria as the rig count fell by 49.5 per cent to 53 in the first eight months (January-August) of 2021, from 105, recorded in the corresponding period of 2020.
The rig count, a major index for measuring the level of activities, especially exploration in the upstream oil sector, was obtained from the reports of the Organisation of Petroleum Exporting Countries (OPEC).
The reports attributed the development to the Coronavirus pandemic and relatively low crude oil prices as major factors that discouraged investors from investing during the period.
It was also partly attributed to the prolonged delay associated with the passage of the Petroleum Industry Bill (PIB), into law.
Like Nigeria, the rig count of some other African oil and gas producing countries also showed significant changes during the period.
For instance, the rig count of Algeria dropped to 191 in 2021, from 271 recorded in the corresponding period of 2020, indicating a decrease of 29.5 per cent.
However, the rig counts of Libya and Angola rose to 32 and 114, from 26 and 101, respectively, during the period, showing an increase of 12.8 per cent and 23 per cent, respectively.
Commenting on the development, the Chief Executive Officer, Cabtree, Olabode Sowunmi, raised hope for increased investment in exploration and other activities in the coming years.
He said, “The prolonged delay in the passage of the PIB into law scuttled the inflow of domestic and foreign investments for many years. In fact, many investors left Nigeria for other countries. But with the emergence of the PIA, we expect that the nation’s oil and gas would witness substantial investments in the coming months.”
Similarly, in its latest report – Investment uptick expected as Nigeria’s Petroleum Industry Bill becomes law – Fitch Solutions Country Risk & Industry Research, a global provider of country risk and industry analysis stated, “We expect Nigeria’s Risk Reward Indices score to improve in next quarter’s scoring, once the changes from the PIB are integrated into our analysis.
“On the upstream side of things, Nigeria is competing for investment on the global stage with newcomers Guyana, Senegal and Kenya while industry stalwarts Brazil and Norway continue to attract investment due to outsized reserves and friendly investor environment.
“Next quarter’s RRI should show Nigeria’s upstream position improve, although attracting new investment over other destinations is likely to be a race as overall investment is likely to decline in the long-term, as decarbonisation efforts divert more capital to alternative energy and high margin barrels. Existing discoveries of sizeable reserves are the most likely area of new investment.
“The biggest impact of the new PIB will be the increase in new investment expected from existing International Oil Companies, IOCs operating the deepwater sector. The oil majors are a significant part of the deepwater players and several have joint stakes in the key offshore growth projects, Bonga Southwest, Bonga North, Bonga Main Extension (OML 118), Preowei (OML 130), and Owowo (OML 139).”
Also, the Director, Centre for Petroleum, Energy Economics and Law, University of Ibadan, Prof. Adeola Adenikinju, said, “It removes some of the uncertainties in the sector and more importantly now you cannot hold a field for a long time without developing it for years. Now prospecting licences will expire after the period stated in the contract. Unlike in the past when major companies can just hold a field without developing it.
Commenting on the development, the National President, Oil and Gas Service Providers Association of Nigeria (OGSPAN), Mr. Colman Obasi, said, “The dwindling rig count clearly showed that the nation is not investing enough in the upstream sector. It also illustrated that we might not likely meet set targets, especially the attainment of 40billion barrels reserves target by 2025.
“Besides, it also showed that Nigeria’s current 37billion barrel reserves might be depleted much faster than expected, if the nation does not invest much in exploration, required to make new finds and increase reserves. More than that, it showed further that the emerging oil and gas countries in Africa, and other continents could overtake Nigeria in the medium and long term.”
In any case, Lead Promoter, EnergyHub Nigeria, Dr. Felix Amieyeofori, called on the International Oil Companies (IOCs), indigenous companies, and the Federal Government to work toward increasing the investments, and by extension the rig count in the upstream sector.
This reaffirms the lawmakers’ commitment to enacting laws and taking legislative actions geared towards the overall development of the State.
The Assembly gave the approval during its Second Legislative Sitting of the Fourth Session held last Friday.
Speaking on the MTEF document during plenary, the House Speaker, Rt. Hon. Martin Amaewhule, noted that by the provision of Section 10(1)(b) of the Rivers State Fiscal Responsibility Law No. 8 of 2010, the MTEF ought to have been laid before the House in September 2025.
Amaewhule explained that traditionally, the document is expected to be presented four months before the commencement of the next financial year and immediately after the expiration of every three-year fiscal cycle.
He, however, stated that in the interest of the State and its people, the House considered it necessary to deliberate on the document, describing it as a precursor to the 2026 Budget Estimates.
The Speaker expressed concern that the year had already progressed significantly before the presentation of the framework.
During deliberations on the document, members examined the assumptions and projections contained in the MTEF and observed that strict adherence to the outlined fiscal parameters would ultimately serve the interest of Rivers people.
The lawmakers maintained that effective implementation of the framework would promote prudent financial management and enhance developmental planning across the State.
Following the debate and positive consideration by members, the Speaker put the question to the House and members voted overwhelmingly in support of the approval of the MTEF.
Meanwhile, during the same sitting last Friday, the House also received a petition from the Chairman of Obio/Akpor Local Government Council, Dr. Gift Worlu.
The petition was presented by the member representing Obio/Akpor Constituency II, Hon. Emilia Amadi.
According to the petition, concerns were raised over an imminent security breach, threats to lives, destruction of property and alleged forceful takeover of property by some lawless persons within parts of the Local Government Area.
Presenting the petition before the House, Hon. Amadi appealed to the lawmakers to revisit the matter and take necessary steps aimed at safeguarding lives and property in the affected communities.
The House is expected to further deliberate on the petition and consider measures to address the concerns raised in order to sustain peace and security in the area.
King Onunwor
News
Fubara Reaffirms Commitment To Blue Economy, Private Sector Growth …Calls For Protection Of Marine Resources
Rivers State Governor, Sir Siminalayi Fubara, made this known during the opening ceremony of the 2026 Annual General Meeting and Conference of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), held in Port Harcourt, last Thursday.
Represented by his deputy, Prof. Ngozi Odu, Governor Fubara described the conference theme, “The Gulf of Guinea and Blue Economy: Pathways to Trade, Investment and Security Towards a $1 Trillion Economy,” as both timely and strategic.
?
?The governor welcomed the leadership of NACCIMA, delegates from the 115 Chambers of Commerce across Nigeria, members of the diplomatic corps, captains of industry, investors, and other distinguished guests to Rivers State.
?
?He commended the National President of NACCIMA, Engr. Jani Ibrahim, for choosing Rivers State as the host of the 2026 conference, noting that the decision had drawn national attention to the immense economic opportunities embedded in the blue economy.
?
?Fubara stated that the blue economy possesses the capacity to generate revenue that could surpass earnings from the oil and gas sector if properly developed and managed.
?
?He stressed the need for Nigeria and other countries along the Gulf of Guinea to take deliberate steps toward maximizing the benefits of their maritime resources while guarding against the continued exploitation of coastal assets by foreign operators.
?
?Expressing concern over the activities of foreign fishing trawlers operating in Nigerian waters, the governor noted that many harvest seafood resources without making meaningful economic contributions to the country.
?
?He emphasized the need for stronger monitoring mechanisms and enhanced protection of Nigeria’s marine resources.
?
?”We must wake up and hit the ground running. If we do not capitalize on and utilize our blue economy, other nations will utilize it for us,” he stated.
?
?The governor thanked NACCIMA for what he described as a timely wake-up call on the importance of the blue economy and maritime security, adding that the successful hosting of the conference in Rivers State demonstrates the state’s safety, hospitality, and readiness for business and investment.
?
?Earlier in his remarks, the President of NACCIMA, Engr. Jani Ibrahim, expressed appreciation to the Rivers State Government for hosting the 66th Annual General Conference of the Association and for the warm reception accorded delegates.
?
?He noted that the state’s commitment to hosting the conference reflects its readiness for business and has helped restore investors’ confidence in its economic potential.
?
?According to him, NACCIMA highly values the cordial relationship between the Rivers State Government and the organized private sector, emphasizing that the association remains the foremost voice of the Nigerian business community.
?
?In her welcome address, the President of the Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA), Dr. Chinyere Nwoga, described the conference as a historic milestone, noting that it was the first time in the Chamber’s 66-year history that it was hosting the national body of NACCIMA.
Nwoga commended the national leadership for entrusting PHCCIMA with the hosting rights and pledged the Chamber’s continued commitment to advancing the objectives of the association and promoting sustainable economic growth through private sector engagement.
Fubara gave the order during his visit to the site of the collapsed building last Thursday to assess the situation.
He said the site will remain “completely sealed off” until the government gets to the “root cause” of the incident.
He described the incident as unfortunate but observed that preliminary investigation had shown that the developer had earlier refused to subject his site to inspection by the state authorities and comply with the necessary building regulations.
The governor, who inspected the site alongside the Commissioner for Physical Planning and Urban Development, Sir Amairigha Edward Hart, and the Permanent Secretary of the Ministry of Special Duties, Dabite Sokari George, explained that he couldn’t visit the site the previous day because he was awaiting formal briefing from the relevant agency of government on the situation.
“We’re here to see for ourselves the very unfortunate incident that took place here. I didn’t come yesterday because I wanted to get the report first, and the Commissioner did brief me that the incident site, first, is not as claimed by the developer, that it’s not under the jurisdiction of the state; that it’s under the jurisdiction of the Federal Housing Authority.
“He also informed me that when the project was ongoing, they came here severally to inspect what was happening and also to see the level of compliance. But unfortunately, that the developer kept claiming that we don’t have any right to interfere,” he said.
Fubara said that the issue was no longer about interference but about the life lost to the building collapse and the collateral damage brought upon the family of the deceased.
He extended condolences to the families of the victims, insisting that the incident could have been avoided if the developer had complied with the rules guiding the engineering design and construction of such a structure in the 21st century.
“We feel very sorry and very regretful that such an incident should be happening in this 21st century because technology has advanced, engineering has developed. I wonder what kind of engineer would even allow this kind of project to go on when everything about it from inception has been faulty.
“I think that at this point, nothing is going to happen on this site any more. We are going to make sure that this place is completely sealed off until we get to the root cause of this incident,” the governor said.
-
Rivers3 days ago
Rivers Police Uncovers Firearm Concealed In Loaf Of Bread
-
Niger Delta2 days agoPro-Chancellor Hands Over Okey Onuchuku Peace, Conflict Institute Building
-
Sports3 days ago
Six Nigerians To Play For NBA Teams
-
News3 days agoFubara Reaffirms Commitment To Blue Economy, Private Sector Growth …Calls For Protection Of Marine Resources
-
Business3 days ago
Gas Economy: Decade of Gas, Pi-CNG/ EV Deepen Media Engagement
-
Business3 days agoIPMAN Raises Concern Over Delay In Chinese Refinery Deal …Predicts Lower Fuel Prices Through Competition
-
Sports3 days ago
NPFL Warns Newly Promoted Clubs
-
Politics3 days agoSenate Defends Passage Of State Police Bill