Nigeria’s oil output wobbles after 10yrs of increase in rigs

Output drops 20.8% in five mature assets — Report Nigeria’s influence within OPEC+ declines We are committed to optimising output — Renaissance, Eni Bad omen requiring urgent steps — Experts By Udeme Akpan, Energy Editor There are indications that increased deployment of oil rigs in Nigeria has not translated into corresponding rise in crude oil production. Rig count, an important indicator of exploration and production activities, is generally expected to support higher crude oil output as operators drill new wells, maintain existing assets and develop additional reserves. But official records show that oil output has stagnated over the period since 2016 when rig count was at its peak in Nigeria’s oil fields.

Industry experts told Financial Vanguard that the situation is attributable to a declining output from oil wells described as mature fields as well as slow development of new wells. According to data obtained from the Organisation of Petroleum Exporting Countries, OPEC, a total of 2,099 rigs were deployed in Nigeria between 2016 and 2026, representing investments running into billions of US dollars. The data showed that 360 rigs were utilised in 2018, the highest annual deployment during the period, while 87 rigs were recorded in 2021, the lowest.

Checks by Financial Vanguard indicated that deepwater drilling can cost between US$400,000 and US$600,000 per day for the rig alone, excluding drilling mud, casing, cementing, logistics, helicopters, supply vessels, insurance and other services. A single offshore exploration well can cost between US$50 million and more than US$150 million, depending on water depth and complexity, meaning that Nigeria’s exploration campaigns have involved investments running into billions of dollars. Despite the spending, Nigeria recorded its highest crude oil output (excluding condensate) amounting to 1.734 million barrels per day, bpd, in 2019, a figure that is significantly below annual budget projection.

It even declined to 1.143 million bpd in 2022. Output drops 20.8% in five mature assets — Report Meanwhile, Nigeria’s average oil output from five mature producing fields fell 20.8 per cent year-on-year, YoY, to 10,930 bpd in June 2026 from 13,794 bpd in June 2025, highlighting the pressure on national production and revenue. A mature oil asset is a field that has produced for many years and moved beyond its early develop…