Ojulari’s investment drive gains momentum as NNPC Limited records 52 land rigs, pushes Bonga project

…Nigeria’s upstream sector posts 22.6% year-on-year rig increase

…As $15bn–$21bn Bonga South-West/Aparo devt advances

Nigeria’s oil and gas industry is recording stronger upstream activity, with 73 rigs reported across the sector in March 2026 and 52 of them deployed in land operations.

The development comes amid renewed investment activity under Bayo Ojulari, Group Chief Executive Officer, Nigeria National Petroleum Company (NNPC Limited), and growing progress on the proposed Bonga South-West/Aparo deepwater project.

According to data from the Nigerian Upstream Petroleum Regulatory Commission, the country’s total rig count increased from 72 in January and February to 73 in March. The figure represents a 22.6 percent increase over the corresponding period of 2025, reinforcing indications of increased exploration and production activity.

Land operations accounted for the biggest component of the March rig count, with 52 rigs. Offshore operations recorded 12 rigs, compared with 11 previously, while swamp operations remained unchanged at nine rigs.

The NUPRC data, however, provide a broader picture of rig availability rather than actual activity alone. Of the 73 rigs recorded in March, only 31 were classified as active. Others were either on standby, stacked or undergoing mobilisation.

This distinction is significant because the 52 rigs attributed to land operations should not be interpreted as 52 rigs drilling simultaneously. Instead, the number reflects the total land-based rig count within the sector during the period.

The increase nevertheless points to improving capacity and investment appetite in Nigeria’s upstream petroleum industry. It comes at a time when NNPC Ltd and its partners are pushing ahead with one of the country’s most ambitious deepwater developments.

The Bonga South-West/Aparo project, located within OML 118, has moved closer to a Final Investment Decision following the execution of key agreements between NNPC Ltd and its project partners.

The agreements were signed with Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited.

The project is projected to attract between $15 billion and $21 billion in investment over its lifespan. Once fully developed, it could produce around 175,000 barrels of oil per day at peak output, alongside 140 million standard cubic feet of gas daily.

The partners have also completed the Pre-Front-End Engineering Design phase and selected a preferred contractor for the Floating Production Storage and Offloading facility. Regulatory and commercial approvals remain necessary before the project can progress through the remaining stages.

Ojulari has presented the development as evidence that government reforms are beginning to translate into concrete investment decisions and project execution. His position reflects the wider strategy of improving the commercial attractiveness of Nigeria’s upstream assets while increasing operational efficiency.

Earlier in August, the NNPC Ltd chief disclosed that recent reforms had generated more than $34 billion in new investment commitments. He further stated that the Deep Offshore Oil and Gas Projects Incentives Order could unlock more than $50 billion in additional investments across Bonga South-West, Zabazaba and Owowo.

Since assuming office in April 2025, Ojulari has focused on disciplined investment, operational efficiency, production growth and accelerated development of commercially viable oil and gas assets.

The latest developments could have broad implications for Nigeria. Increased drilling and major deepwater investments have the potential to support crude production, government revenue, foreign-exchange earnings, job creation and opportunities for indigenous businesses.

They could also strengthen the country’s efforts to achieve its stated ambition of increasing crude oil production to three million barrels per day by 2030.

For an industry that has faced investment and production challenges, the simultaneous increase in rig deployment and advancement of a major deepwater project offers a notable sign of renewed confidence.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp