Worldwide offshore oil rigs drop to 304

…Nigeria produces crude oil from five wells as prices plunge
The numbers of active offshore rigs worldwide have declined from 377 to 304 due to the plummeting crude oil prices since 2014, according to the United States Energy Information Administration (EIA).

In Nigeria, the number of active crude oil rigs in Nigeria plunged to 28 in April from the 38 it recorded in January this year, mostly triggered by the slump in global crude oil prices.

Specifically, latest data from the Nigerian National Petroleum Corporation (NNPC), for the month of June released on Monday, showed that only Shell Petroleum Development Company (SPDC) and Addax carried out exploration and drilling activities during the month of June this year. It said the operation was carried out on five wells.

The NNPC stated that total wellhead gross production for the month was 60.17 million barrels, while terminal production total for the month was about 59.25 million barrels.

These it noted, represents 1.97 million barrels per day or 6.68 per cent lower from production of 63.49 million barrels per day in May 2015.
NNPC disclosed that the total crude oil and condensates lifting for both domestic and export during the month were about 59.57 million barrels.
“Oil companies lifted about 36.38 million barrels, while NNPC lifted 23.19 million barrels. Lifting by fiscal regime shows 27.6, 24.75, and 0.625 million barrels for JVC, PSC/SC, and Others respectively. Out of NNPC’s liftings, 19.48 million barrels was for Federation Account”, it added.

The EIA said the number of active offshore rigs in the U.S. Gulf of Mexico (GOM) dropped more rapidly, falling by 46 per cent.
It noted that over the past 15 years, the U.S. GOM’s share of active offshore rigs worldwide has declined significantly—from almost half of all active offshore rigs worldwide in 2000 to less than 20 per cent since 2008.

It hinted that in the U.S. GOM, technology advancements accelerated the development of the deepwater (areas where the water depth is greater than 1,000 feet).

The move to deeper waters prompted the departure of rigs operating in the shallow waters of the U.S. GOM. Natural gas prospects in the U.S. GOM have also become less profitable, as the largely shale-driven increase in onshore natural gas supply contributed to decreases in U.S. natural gas prices.
“The number of active offshore rigs in the U.S. GOM declined from 122 in January 2000 to 41 in January 2010, before falling to 19 in June 2010 following the Deepwater Horizon offshore explosion and blowout. The U.S. GOM active offshore rig count recovered to 57 by December 2014, and currently the number is 33”, it added.

According EIA, from 2000 to 2006, the share of active rigs operating offshore in Asia Pacific, the Middle East, and Latin America grew significantly. That share remained steady over the past decade”, it added.

It stated that the expansion of offshore drilling in India and China largely accounted for the growth in offshore rigs in the Asia Pacific region.

EIA disclosed that during the early 2000s, Qatar and Iran accounted for much of the growth in active offshore rigs in the Middle East, with Saudi Arabia accounting for a large portion of the regional growth since 2006. It stated: “Mexico accounted for the growth in active offshore rigs in Latin America in the early 2000s, as national oil company Pemex increased its offshore activity to arrest declining production from aging fields. Since 2006, Brazil has been responsible for much of Latin America’s growth.

Most of the more recent growth in active offshore rigs outside the United States has occurred in Africa. Angola and Nigeria account for much of the growth in the region after 2010. Angola has more than 10 offshore oil projects expected to come online within the next five years. Nigeria’s offshore activities have been focusing on the deepwater and ultra-deepwater; at least three deepwater projects are in development and are projected to come online within the next five years”.