• NNPCL, partners move to develop bonga deepwater project

Nigeria’s upstream petroleum industry is entering a period of renewed activity, with new rig deployment coinciding with the advancement of a major deepwater oil and gas project that could attract as much as $21 billion in investment.

The latest developments have strengthened the investment narrative around Nigeria’s petroleum sector under NNPC Limited Group Chief Executive Officer, Bayo Ojulari, whose leadership has focused on improving operational efficiency, encouraging disciplined investment and accelerating commercially viable projects.

Figures released by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) show that Nigeria’s total rig count rose to 73 in March 2026 compared with 72 rigs in both January and February.

The land segment remained the dominant component of the industry, accounting for 52 rigs. Offshore activity also recorded an increase, moving from 11 rigs to 12, while swamp operations held steady at nine rigs.

Overall, the March rig count was 22.6 per cent higher than the corresponding period in 2025. The increase suggests that exploration and production activity is gaining traction as operators and investors respond to improving conditions within the upstream environment.

There is, however, an important qualification to the figures. The total rig count measures rigs in the sector, not necessarily rigs working at a particular moment. NUPRC data show that only 31 of the 73 rigs recorded in March were active. The remaining rigs were on standby, stacked or undergoing mobilisation.

The distinction does not diminish the significance of the overall increase, particularly because a larger rig base can support greater drilling and development activity as projects advance.

At the same time, NNPCL and its partners have taken another major step towards developing the Bonga South-West/Aparo deepwater project.

The OML 118 development is regarded as a landmark project because of its potential scale and investment requirements. It is estimated to require between $15 billion and $21 billion over its lifespan and could reach peak production of approximately 175,000 barrels of oil per day.

The project could also deliver about 140 million standard cubic feet of gas daily at peak production, making it important not only for crude oil output but also for Nigeria’s gas supply ambitions.

NNPCL has signed key agreements with Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited. These agreements are intended to advance the project towards a Final Investment Decision.

The project’s Pre-Front-End Engineering Design phase has been completed, while a preferred contractor has been selected for its Floating Production Storage and Offloading facility. The development remains subject to regulatory and commercial approvals.

Ojulari has described the progress as evidence that petroleum-sector reforms are beginning to produce tangible investment outcomes.

His assessment comes against the backdrop of an earlier disclosure earlier this month that recent reforms had attracted more than $34 billion in new investment commitments. He also said the Deep Offshore Oil and Gas Projects Incentives Order could unlock more than $50 billion in additional investment across Bonga South-West, Zabazaba and Owowo.

Since his appointment in April 2025, Ojulari has made investment discipline, efficiency, production growth and accelerated project development central themes of his leadership.

The emerging picture is therefore one of an industry attempting to move from potential to execution. More rigs, advancing projects and renewed investment commitments could strengthen production and revenue prospects while creating employment and opportunities for Nigerian businesses.

If the momentum is sustained, the developments could contribute to Nigeria’s ambition of increasing crude oil production to three million barrels per day by 2030 and reinforce the strategic importance of the upstream petroleum sector to the national economy.