Nigeria has recorded a significant 19.3 per cent decline in the level of oil exploration in the first 10 months of this year, a development which may be threatening the Federal Government’s plan to restore growth in crude oil reserves.

Data from the Organisation of Petroleum Exporting Countries, OPEC, indicated that the country’s oil rig count stood at a total of 121 as of October 2020, compared to 150 recorded in the corresponding period of 2019.

Oil rig count measures the level of exploration and production activities in the upstream segment of the industry. As of last year, the Federal Government had said it would ramp up activities in the upstream to ensure a target of 40 billion barrels reserves are met by 2025.

Expressing the mind of the Federal Government, the director, Department of Petroleum Resources, DPR, Sarki Auwalu, had on October 10, 2020, stated: “Nigeria’s target of 40 billion barrels oil/condensate reserves by 2025 is a realistic and achievable target. The policies and programs being implemented by the federal government, including the ongoing bid rounds for marginal oil fields, reforms in the oil and gas sector are geared toward realizing these aspirations.”

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Source: Vanguard