Rig Count Rises To 41 As NUPRC Enforces Drill Or Drop Policy

The Nigerian Upstream Petroleum Regulatory Fee (NUPRC) has reported a big enhance in rig exercise, rising from 11 rigs earlier than the Petroleum Trade Act (PIA) to 42 rigs at present in operation. This surge displays rising investor confidence and a revitalised upstream sector, pushed largely by the Fee’s enforcement of the “Drill or Drop” coverage.

Nevertheless, regardless of the uptick in rig depend, Nigeria’s crude oil manufacturing skilled a decline in Could 2025. The NUPRC reported that crude oil output dropped to 1,452,941 barrels per day (bpd) in Could, down 2.2 p.c from 1,485,700 bpd in April. Together with condensate, whole manufacturing fell from 1.68 million barrels per day in April to 1.65 million bpd in Could. This output stage represents 97 p.c of Nigeria’s OPEC quota of 1.5 million bpd.

The “Drill or Drop” coverage mandates that oil and gasoline operators should begin manufacturing inside a specified timeframe or relinquish their licenses. This regulatory transfer goals to revitalise the oil sector, guarantee optimum use of property, and increase authorities income by stopping operators from holding onto idle oil fields. The coverage is a key a part of the broader reforms beneath the PIA, which additionally contains automation of regulatory processes to cut back bureaucratic delays and enhance operational effectivity throughout the sector.

Throughout a current strategic engagement in Abuja, a delegation from the Unbiased Petroleum Producers Group (IPPG), led by its chairman Abdulrazaq Isa, counseled the NUPRC for its regulatory reforms and function in facilitating the divestment of upstream property by worldwide oil corporations (IOCs) to indigenous operators.

This transition is seen as pivotal in reshaping Nigeria’s power panorama and creating alternatives for native corporations to scale up operations.

NUPRC’s chief government, Engr. Gbenga Komolafe, reiterated the Fee’s dedication to creating an enabling enterprise surroundings and highlighted the constructive affect of the reforms, together with the “Drill or Drop” coverage. He emphasised that these insurance policies have began to yield tangible outcomes, contributing to elevated rig exercise and a extra clear, accountable upstream sector.

The day by day common manufacturing for Could was 1,657,435 barrels per day, consisting of 1,452,941 bpd of crude oil and 204,493 bpd of condensate. The bottom and peak mixed manufacturing in Could had been 1.61 million bpd and 1.81 million bpd respectively.

The slight dip in manufacturing is attributed to elements similar to company governance realignments and upkeep actions by main operators. Nonetheless, the NUPRC continues to pursue initiatives just like the Undertaking One Million Barrels Incremental to spice up day by day crude oil manufacturing, with sturdy assist from indigenous producers just like the IPPG.

The federal authorities, by way of the NUPRC and the Minister of State for Petroleum Assets, Heineken Lokpobiri, has reiterated its resolve to implement the “Drill or Drop” coverage strictly, warning that idle oil wells will likely be taken over from operators who fail to develop them. This enforcement is anticipated to catalyse manufacturing, improve asset utilisation, and considerably enhance authorities revenues.

The NUPRC’s reforms additionally deal with transparency, accountability, and anti-corruption measures to make sure that the sector operates effectively and that revenues are optimally collected and managed. The Fee’s automation of licensing and allow processes has decreased bureaucratic bottlenecks, additional encouraging funding and operational effectivity.

Nigeria’s upstream oil sector is present process a transformative section marked by regulatory reforms beneath the PIA, with the “Drill or Drop” coverage enjoying a central function in driving rig exercise and guaranteeing productive use of oil property. Whereas manufacturing dipped barely in Could, the elevated rig depend and regulatory enforcement sign a constructive trajectory for the sector’s development and Nigeria’s power future.