Nigeria’s Rig Count Rises by 2, as OPEC Increases by 5

-By Gideon Osaka

Nigeria took a two-rig leap as its rig count rose to 17 in September, as against 15 recorded in August. This is coming at a time the Organisation of Petroleum Exporting Countries, OPEC took a five-rig leap, having recorded 585 in September, as against 580 recorded the previous month, according to the latest OPEC monthly oil market report.

However, beyond OPEC data, Valuechain gathered that there were 26 rigs active onshore, shallow water and deepwater locations in Nigeria as at mid October, 2019. 19 of them were actually drilling, as five were on work over jobs, while two were completing. There was only deepwater rig on location – West Jupiter, a drillship owned by Seadrill, carrying out workover duties on the Akpo field for French major, Total. Unlike in the past five years, there is little rig-related activity in deepwater. World rig count, however witnessed a shortfall of 63, having recorded 2,299 in the latest count, as against 2,362 recorded the previous month.

Among the OPEC members, United Arab Emirate, UAE had the most impressive rig count, plus four, as it had 67 in September, against 63 recorded in August. This was followed by Gabon, which had eight as against six previously. Ecuador has plus one, having recorded nine in September as against eight recorded in August. Algeria led the losers pack with minus two, having got 42 in September, as against 44 recorded the previous month. It was followed by Congo, which had minus one, as its rig count for September showed two as against three seen in August. Kuwait also had minus one, as its September rig count witnessed 46, as against 47 recorded in August. Seven OPEC members had their rig count unchanged within the period under review. They include Angola, Equatorial Guinea, Iran, Iraq, Libya, Saudi Arabia and Venezuela, which had 4, 1, 157, 77, 16, 114 and 25 respectively.

Non OPEC rig count witnessed a reduction by 68, having recorded 1,714 in September, as against 1,782 recorded in August. Other African non OPEC members had plus eight, as their rig count showed 56 in September, as against 48 witnessed the previous month. The United States has a huge loss of 47 within the period under review, as it recorded 879 in September, against 926 recorded the previous month. Canada also had reduction in its rig count by nine, as its September record showed 132, while the previous month was 141. United Kingdom also had a reduction by three, as its record showed 15, as against 18 recorded within the period under review. Latin America witnessed a reduction by 17, having recorded 111 in September, as against 128 recorded the previous month.

OPEC Crude Oil Production
Meanwhile total OPEC-14 preliminary crude oil production averaged 28.49 million barrels daily, mbd in September, lowered by 1,318, tbd, month on month, as it recorded 29,809 mbd in August. Crude oil output decreased mostly in Saudi Arabia, Venezuela, Iraq and Iran, while it increased mainly in Libya, Angola and Congo.

Saudi Arabia had minus 1,260 tbd, having recorded 8,564 mbd in September as against 9,844mbd recorded the previous month. Venezuela followed with a shortfall of 82 tbd, as it produced 644 tbd in September, as against 727 produced in August. Iraq had minus 60 tbd, as it had 4,724 mbd in September as against 4,785 garnered in August. Nigeria made the list of OPEC members with decreased production having recorded minus 16 tbd, as its September production stood at 1,859 mbd, as against August production of 1,875 mbd. Gabon was also among the countries with shortfall, having recorded minus 10 tbd as it produced 199 tbd, as against 209 tbd within the period under review.

Libya led the countries with more production having recorded plus 104 tbd, as it produced 1,164 mbd in September, as against 1,060 mbd produced in August. Angola increased its production by 24 tbd, as its September production stood at 1,411 mbd, as against its August production of 1,387 mbd. Congo, which recorded an increase of 14 tbd produced 335 tbd in September, as against 321 tbd produced in August. Kuwait increased its production by 9tbd, as its September record showed 2,660mbd, as against 2,651 mbd its produced in August. Similarly, Ecuador, which recorded an increase of 6tbd, produced 547 tbd in September, as against 541 tbd produced the previous month. Equatorial Guinea recorded an increase of 4tbd, as its production in September stood at 124 tbd, as against 120 tbd produced in August. Algeria and United Arab Emirates tied in their production increase by 1tbd. While Algeria produced 1,018 mbd in September, as against 1,017 mbd, in August, UAE produced 3,082 mbd in September, as against 3,081 mbd produced the previous month.