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•73 rigs recorded in March as Bonga South-West/Aparo edges closer to a final investment decision
Nigeria’s upstream petroleum sector is recording a combination of increased rig deployment and major project advancement that could reshape the outlook for oil and gas investment in the country.
The latest developments are unfolding under NNPC Limited Group Chief Executive Officer Bayo Ojulari, who has made investment discipline, operational efficiency, production growth and faster development of commercially viable assets key priorities since assuming office in April 2025.
According to the Nigerian Upstream Petroleum Regulatory Commission, Nigeria’s total rig count rose to 73 in March 2026. The figure was higher than the 72 rigs recorded in January and February.
Land-based operations accounted for 52 rigs, confirming their dominance in the national rig profile. Offshore rigs increased from 11 to 12, while swamp operations remained unchanged at nine.
The 73-rig total represented a 22.6 per cent increase compared with the corresponding period of 2025. The rise points to sustained investment and expanding exploration and production activity across the upstream sector.
However, the figures also provide a reminder that rig count does not automatically translate into simultaneous drilling activity. NUPRC recorded 31 active rigs in March, while the others were on standby, stacked or undergoing mobilisation.
The distinction is important for assessing actual operational output, but the broader increase remains significant because rig availability is an essential component of upstream development.
At the project level, one of the biggest developments is the renewed progress on the Bonga South-West/Aparo deepwater project in OML 118.
NNPC Ltd and its partners have executed key agreements aimed at advancing the project towards a Final Investment Decision. The companies involved include Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited.
The proposed development could attract between $15 billion and $21 billion in investment over its lifespan, making it one of the most consequential deepwater projects in Nigeria’s petroleum industry.
At peak production, Bonga South-West/Aparo is projected to produce about 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily.
The partners have already completed the Pre-Front-End Engineering Design phase and selected a preferred contractor for the project’s Floating Production Storage and Offloading facility. The project remains subject to regulatory and commercial approvals.
The advancement comes against the backdrop of broader investment claims by Ojulari. Earlier in August, he disclosed that petroleum-sector reforms had generated more than $34 billion in new investment commitments.
He also said the new Deep Offshore Oil and Gas Projects Incentives Order had the potential to unlock more than $50 billion in additional investments across Bonga South-West, Zabazaba and Owowo.
Those figures highlight the scale of the investment opportunity that could emerge if major Nigerian upstream projects reach execution.
The developments also carry potential benefits for the wider economy. Increased oil and gas production could improve government revenues and foreign-exchange earnings, while large projects can support employment, contracting opportunities and indigenous participation.
For NNPC Ltd, the simultaneous movement in rig deployment and project development strengthens the argument that Nigeria’s upstream industry is regaining momentum.
For the Federal Government, successful delivery of major projects will be crucial to achieving its ambition of raising crude oil production to three million barrels per day by 2030.
The latest developments therefore represent more than isolated industry statistics. They suggest that Nigeria is beginning to see increased activity across both drilling operations and major project development, creating the possibility of a broader upstream recovery.
