Exploration activities in Nigeria’s oil and gas sector have increased by 23% in February 2024 compared to the same period in 2023, with a total of 16 rigs in operation. This growth represents a 6% increase from January 2024, according to the March 2023 Monthly Oil Market Report by OPEC.
The Chief Executive of the Nigerian Upstream Petroleum Regulatory Commission, Engr. Gbenga Komolafe, attributes this sustained rise in exploration to the positive impact of the Petroleum Industry Act (PIA) in Nigeria. The PIA has introduced institutional governance, efficient administration, and attractive fiscal regimes, creating a conducive environment for investment and operations, including provisions for host communities.
Under the PIA, partnerships have been established with TGS-Petrodata to acquire 56,000 square kilometers of 3D Seismic Gravity data in the Niger Delta deep and Ultra Deep Offshore regions. This initiative aims to reduce risks and enhance exploration efforts without government funding, with revenue generated from investor payments to be shared between the government and TGS.
Looking ahead, Komolafe is optimistic about sustaining the growth in oil exploration in 2024, with plans in place to conduct an oil licensing round as part of the PIA’s implementation.
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