International oil companies did not invest much in oil exploration in Nigeria during August 2022.
International oil companies and indigenous oil companies alike failed to invest much in the country’s oil exploration process for August.
Nigeria’s oil industry it was observed, has been experiencing a gradual reduction as exploration continues to drop in rig count. The country’s rig count began this year at a very low point of 6 slightly progressing upward to 11 around April, a level it sustained till July, before dropping in August.
According to the Organisation of Petroleum Exporting Countries, OPEC, the rig count is a major index for measuring exploration and other activities in the upstream sector of the petroleum industry globally.
The organisation did not disclose the factors responsible for the drop in exploration in its September 2022 Monthly Oil Market Report, MOMR.
However, the report showed that Algeria was the highest deploying nation with 33 rigs while Equatorial Guinea came last with no rigs whatsoever.
This also means that the impacts of the Petroleum Industry Act, PIA, expect to be positive on investment, exploration, and production have not yet been felt.