Nigeria’s Active Rig Count Rises 40% M-o-m as Offshore Drilling Activity Rebounds

Emmanuel Addeh in Abuja 

Nigeria’s oil and gas industry recorded a significant increase in drilling activity in the first quarter of 2026, with the number of active rigs rising by over 40 per cent between February and March, according to data released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).

The commission’s Rig Disposition Report for January to March 2026 showed that active rigs increased from 22 in February to 31 in March, representing a 40.9 per cent month-on-month jump. Compared to January’s figure of 40 active rigs, the March level still reflected a strong recovery from the sharp slowdown witnessed in February.

The data indicated that Nigeria maintained a relatively stable rig fleet throughout the quarter, with total rig numbers standing at 72 in January, 72 in February and 73 in March. However, the composition of the fleet changed considerably during the period, highlighting shifting operational activity across the upstream sector.

According to the report, active rigs stood at 40 in January before dropping sharply to 22 in February. The decline coincided with a substantial increase in standby rigs, which rose from 11 in January to 25 in February. This suggested that a significant number of drilling units were temporarily unavailable for operations despite remaining technically ready for deployment.

By March, however, industry activity appeared to regain momentum. Active rigs climbed to 31, while standby rigs fell to 22, indicating that some idle units had returned to operational service. The recovery pointed to renewed drilling programmes and improved field activity by operators seeking to sustain production and advance development projects.

The report also showed that the number of stacked rigs remained unchanged at eight throughout the quarter. Stacked rigs are units that have been withdrawn from active service for an extended period, usually because operators have no immediate work programmes for them. The stability in the stacked rig category suggested that while activity levels fluctuated, there was no significant deterioration in the underlying condition of the country’s drilling fleet.

In addition, rigs movement totalled 13 in January, increased to 17 in February and eased to 12 in March. These were rigs being relocated between locations or projects and were therefore temporarily unavailable for drilling operations. The movement of rigs during the quarter reflected efforts by operators to reposition assets for upcoming exploration, appraisal and development campaigns.

Rig count is one of the most important indicators of future oil and gas production because drilling activity typically precedes output growth. An increase in active rigs generally signals stronger investment, higher exploration activity and increased field development work.

The rebound recorded in March is therefore viewed as a positive sign for Nigeria’s upstream petroleum industry, particularly as the country continues efforts to raise crude oil production, attract fresh investment and maximise the benefits of the Petroleum Industry Act (PIA).

The rise in number of active rigs also aligned with crude and condensate production during the period, with 1.62 million barrels per day in January, with rigs at 40; fell to 1.48 million bpd in February when active rigs fell to 22 and 1.54 million bpd when the rigs climbed again to 31 in March.

The development comes at a time when the federal government and industry regulators are seeking to raise crude oil production, attract fresh investment and prepare for another licensing round scheduled to begin in the third quarter of 2026. 

In the same vein, the NUPRC data revealed pockets of activity among indigenous and state-backed operators.

Among the companies with active drilling programmes were NNPC Exploration and Production Limited (NEPL), Renaissance Africa Energy Company, Walter Smith, Aradel, First E&P, Conoil, Newcross and Multisub Energy. Several drilling campaigns were underway in fields such as Utorogu, Assa, Akai, Ete South, Olure and Ato North during the period. A further review of the report suggested that indigenous operators are now responsible for a significant portion of ongoing drilling activity, reflecting the continuing shift in Nigeria’s upstream sector following the divestment of several international oil companies from onshore and shallow-water assets. 

The NUPRC data also showed stability in offshore marine support assets during the quarter. Vessel and barge counts remained unchanged at nine throughout January, February and March, with seven active units and two non-active units recorded in each month. The consistency suggested that offshore logistics support capacity remained adequate despite fluctuations in drilling activity.

The federal government’s recent licensing rounds, field development initiatives and renewed focus on production optimisation have been aimed at reversing years of underinvestment and declining output.

For Nigeria, the increase in operational rigs could translate into higher drilling volumes in subsequent months, particularly if crude oil prices remain supportive and operators maintain planned capital expenditure programmes.