According to statistics from the June 2023 Offshore Rigs Tracker, which was released on Monday by Hawilti and the Caverton Offshore Support Group Plc, Angola and Nigeria are now the largest crude oil drilling markets in Africa.
Nigeria has lost its status as Africa’s top oil producer multiple times due to frequent petroleum theft and pipeline vandalism, but is now showing signs of recovery, according to the most recent monthly oil production numbers issued by the Organisation of Petroleum Exporting Countries.
“Nigeria has caught up with Angola to also take the position of biggest drilling market this year, with a total of eight drilling campaigns confirmed offshore in both countries.
“However, activity is likely to remain higher in Angola as most drilling campaigns there are confirmed until the second half of 2024 already to support exploratory, infill, and development drilling,” the report stated.
The Valaris DS-10 for SNEPCo (Shell), the Shelf Drillings Baltic and Mentor rigs for TotalEnergies and First E&P, respectively, were among the oil rigs that had been mobilised offshore Nigeria that had been extended, according to the report.
Furthermore, it mentioned that Shelf Drilling had obtained fresh contracts for the Adriatic I and Sceptre units, boosting Nigeria’s offshore drilling operations.
“The former is for drilling on Oriental Energy Resources Ebok Field scheduled between May and August this year, while the latter is for a much longer, two-year contract for an undisclosed operator.
“In total, Nigeria will see eight offshore drilling campaigns take place this year at any point in time, putting it at the same level as Angola,” the report stated.
It said that Angola, in southern Africa, has long maintained the title of best drilling location on the continent since many rigs from foreign oil corporations had been stationed there under long-term contracts to support deep-water infill, development, and exploration drilling.
“The recovery of Nigeria’s offshore drilling activity is welcome news as the industry continues to be a main driver of the Nigerian economy. This is in turn providing unique opportunities for aviation services providers to pursue growth opportunities and provide safe and sustainable solutions to transport workers and equipment to offshore drilling rigs and platforms.
“Such market activity also contributes to the development of other sectors such as search and rescue, VIP transport, and executive charter services,” Capt Ibrahim Bello, Managing Director at Caverton Helicopters, stated in the crude oil rigs tracker report.
With just offshore drilling activity (shallow and deep water), and excluding onshore and marsh areas, the Offshore Rigs Tracker gives the African petroleum industry the chance to watch rig movements and drilling campaigns offshore sub-Saharan Africa.
The tracker, which is published every three months by Caverton Offshore Support Group Plc in collaboration with Hawilti Ltd, acts as a gauge for upstream dynamics in sub-Saharan Africa, including both exploration and production.
The research also said that the number of offshore drilling rigs in Africa had continued to rise since 2023, with 38 drilling rigs contracted this year alone.
According to the report, 2023 will be one of the busiest years for offshore drilling activities on the continent in 10 years as a result of recent contract extensions and new contract awards.
According to the research, the French oil firm TotalEnergies was the most active operator offshore Africa this year, mobilising eight rigs in total through 2023, including three in Angola, two in Nigeria, two in Namibia, and one in West Africa whose location has not yet been revealed.
“In Nigeria, TotalEnergies has also drilled the Ntokon Central shallow water prospect on OML 102, where it recently announced a significant discovery.
“More importantly, it is executing a multi-well deep-water campaign on its Egina and Akpo hubs within OML 130. Egina is notably experiencing a rapid production decline which the drilling campaign seeks to address. Up to nine wells are scheduled on both Egina and Akpo, including potential exploratory drilling of nearby prospects,” the report stated.
An analysis of the number of rigs mobilised on the continent in 2023 revealed that West Africa had 16, Southern Africa had 13, Central Africa had 11, and East Africa had none.
Since most drilling activity took place in deep water, where IOCs possessed the majority of their producing and exploration portfolio, it was noted that international oil firms, particularly TotalEnergies and Eni, continued to be a major driving force behind offshore drilling campaigns this year.
The report stated that in West Africa, “Nigeria is finally back in business with most rigs schedules extended and new contracts signed since the start of the year.
“Importantly, the country has two deepwater rigs active this year, including the Valaris DS-10 for SNEPCO (Shell) on its Bonga hub (OML 118) until Q1 2024, and the Gerry de Souza for TotalEnergies on its Egina and Akpo hubs (OML 130).”
