·$20bn Bonga project nears FID, land rig deployment climbs to 52
Peter Uzoho
Nigeria’s upstream petroleum industry is showing renewed signs of activity as the Nigerian National Petroleum Company Limited (NNPC Ltd) under its Group Chief Executive Officer, Bayo Ojulari, has recorded increased rig deployment alongside significant progress on the multibillion-dollar Bonga South-West/Aparo deepwater project.
Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) indicate that Nigeria’s total rig count reached 73 in March 2026, up from 72 recorded in January and February.
The figures point to sustained activity across the country’s exploration and production landscape and suggest growing confidence in the investment prospects of the Nigerian petroleum sector.
Land operations accounted for the largest share of the rig deployment, with 52 rigs recorded during the period. Offshore activity also improved, with the number of rigs increasing from 11 to 12, while swamp-based operations remained steady at nine rigs.
The March figure represented a 22.6 per cent increase compared with the corresponding period in 2025. The growth provides another indication that investment and operational activity are gaining momentum across the upstream segment.
However, the NUPRC figures make an important distinction between rigs recorded in the country and rigs that were actively operating. Of the 73 rigs counted in March, 31 were active, while the remaining rigs were either on standby, stacked or undergoing mobilisation. The 52-rig figure therefore specifically represents land-based rigs rather than 52 active rigs.
The upward movement in drilling activity comes as NNPC Ltd and its partners make important progress on the Bonga South-West/Aparo deepwater development, one of the most significant proposed oil and gas projects currently advancing in Nigeria.
NNPC Ltd recently signed key agreements with Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited. The agreements are designed to move the OML 118 project closer to a Final Investment Decision.
The Bonga South-West/Aparo project is expected to attract between $15 billion and $21 billion in investment over its lifespan. At peak production, the development is projected to produce approximately 175,000 barrels of oil per day and 140 million standard cubic feet of gas daily.
The project has already completed its Pre-Front-End Engineering Design phase, while a preferred contractor has been selected for its Floating Production Storage and Offloading facility. The next steps remain subject to regulatory and commercial approvals.
For Ojulari, the progress represents a practical demonstration of the impact of petroleum-sector reforms and efforts to restore investor confidence. Earlier in August, he disclosed that recent reforms had generated more than $34 billion in new investment commitments.
He also said the new Deep Offshore Oil and Gas Projects Incentives Order could unlock more than $50 billion in additional investments across major developments, including Bonga South-West, Zabazaba and Owowo.
Since taking office in April 2025, Ojulari has emphasised disciplined investment, operational efficiency, production growth and faster development of commercially viable assets.
The combination of stronger rig deployment and progress on Bonga South-West/Aparo is therefore emerging as an important indicator of renewed momentum in Nigeria’s upstream petroleum industry. The expected benefits extend beyond crude production to include government revenues, foreign-exchange earnings, employment, indigenous participation and the country’s long-term ambition of raising crude oil output to three million barrels per day by 2030