Nigeria’s upstream petroleum sector is witnessing renewed investment activity, with the country’s rig count rising to 73 in March 2026 and progress recorded on the major Bonga South-West/Aparo deepwater project.

Data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria recorded 73 rigs in March, up from 72 in both January and February. Of the total, 31 rigs were active, while the remaining rigs were either on standby, stacked or undergoing mobilisation.

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The increased activity has been linked to improved investment conditions, operational efficiency and efforts to increase oil and gas production through the development of commercially viable projects.

Bonga South-West Project Targets 175,000 Barrels Daily

Partners in OML 118, including Shell Nigeria Exploration and Production Company Limited, Esso Exploration and Production Nigeria Deepwater Limited and Nigerian Agip Exploration Limited, have signed key agreements aimed at moving the Bonga South-West/Aparo project towards a Final Investment Decision (FID).

Industry sources estimate that the deepwater project could attract between $15 billion and $21 billion in investment over its lifespan.

At peak production, Bonga South-West/Aparo is expected to produce approximately 175,000 barrels of crude oil per day, alongside about 140 million standard cubic feet of gas daily.

The project has already completed its Pre-Front-End Engineering Design (Pre-FEED) phase, while a preferred contractor has reportedly been selected for the Floating Production Storage and Offloading (FPSO) facility. Regulatory and commercial approvals are still required before the project can advance to the next stage.

Reforms Expected to Unlock More Investments

The development comes amid efforts by the Federal Government and the Nigerian National Petroleum Company Limited (NNPC Ltd.) to attract fresh investment into the upstream sector.

NNPC Group Chief Executive Officer, Bayo Ojulari, recently disclosed that reforms in the sector 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 projects including Bonga South-West, Zabazaba and Owowo.

Beyond increasing crude oil production, the investments could boost government revenue, foreign-exchange earnings, employment and contracting opportunities, while creating more room for indigenous participation in Nigeria’s petroleum industry.

The developments align with Nigeria’s ambition to raise crude oil production to three million barrels per day by 2030, although achieving the target will depend on sustained investment, operational efficiency, security and timely completion of major oil and gas projects.