Only 31 of Nigeria’s 73 Oil Rigs Were Active in March — NUPRC

Nigeria’s oil industry had 73 rigs in March 2026, but only 31 were active, showing that the rise in available drilling equipment has not yet translated into full field activity.

The figure, released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), was up from 72 rigs in January and February and 22.6 per cent above the number recorded in the same period of 2025.

Land operations accounted for 52 rigs, making them the largest part of the national count. Offshore operations rose from 11 to 12 rigs, and swamp operations held at nine.

But the March figures also show a gap between equipment availability and actual drilling. NUPRC said 31 rigs were active, with the others on standby, stacked or undergoing mobilisation.

The distinction gives a clearer picture of activity in Nigeria’s upstream petroleum sector, where more drilling equipment is available even though much of it is yet to be deployed.

The industry is also seeing progress on major oil and gas projects, with NNPC Limited pursuing developments that could bring substantial new production and capital into the sector.

Bonga project reaches investment stage

One of the most significant developments is the progress of the Bonga South-West/Aparo project in OML 118.

NNPC Limited and its partners have signed agreements aimed at taking the deepwater project towards a Final Investment Decision.

The partners are Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited.

The project could attract between $15 billion and $21 billion in investment over its lifespan.

At peak production, Bonga South-West/Aparo is projected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily.

The partners have completed the Pre-Front-End Engineering Design phase and selected a preferred contractor for the project’s Floating Production Storage and Offloading facility.

The development is still subject to regulatory and commercial approvals.

The project is being advanced under NNPC Limited Group Chief Executive Officer Bayo Ojulari, who assumed office in April 2025.

Since then, the company has placed investment discipline, operational efficiency, production growth and faster development of commercially viable assets among its priorities.

The Bonga development provides a major test of whether those priorities can translate into actual project execution.

Its projected output is also significant at a time when Nigeria is seeking to raise crude production and attract capital into its upstream industry.

New commitments raise industry expectations

The rig figures and Bonga project come alongside investment figures disclosed by Ojulari earlier in August.

He said petroleum-sector reforms had generated more than $34 billion in new investment commitments.

Ojulari also said the new Deep Offshore Oil and Gas Projects Incentives Order could unlock more than $50 billion in additional investments across Bonga South-West, Zabazaba and Owowo.

These figures point to the amount of capital that could enter the petroleum sector if major projects proceed to execution.

For the upstream industry, the number of rigs provides one measure of available drilling capacity. The number actually working provides another.

In March, only 31 of the 73 rigs were active. The rest were either waiting for work, stacked or being prepared for deployment.

That means the rise in the national rig count should not be read as evidence that all 73 rigs were drilling at the same time.

Still, NUPRC’s 73-rig figure represents a 22.6 per cent rise from the corresponding period of 2025. It also shows that land-based activity continues to account for most of the country’s drilling equipment.

The offshore count increased by one rig between February and March, from 11 to 12. Swamp operations stayed at nine.

The figures therefore present two sides of the upstream picture: more rigs are available, but a much smaller number were active in March.

The progress on Bonga South-West/Aparo provides another measure of activity. Unlike a rig count, the project’s advancement points to work on a major development that could eventually bring new oil and gas production.

The proposed output of 175,000 barrels of oil per day, alongside 140 million standard cubic feet of gas daily, gives the project a significant place in Nigeria’s production outlook.

The expected investment of up to $21 billion also puts the development among the major capital projects being pursued in the petroleum sector.

The possible economic gains extend beyond production. Higher oil and gas output could improve government revenue and foreign-exchange earnings, while large projects can create employment, contracting opportunities and room for indigenous participation.

For NNPC Limited, the combination of higher rig availability and progress on major projects provides evidence of activity at different stages of upstream development. For the Federal Government, the delivery of such projects will be important to its ambition of reaching three million barrels of crude oil production per day by 2030.