As a vital asset in Africa, oil drives economic growth, funds key infrastructure projects, and its production is closely tied to the number and efficiency of active oil rigs.
Oil rigs or oil platforms refer to the machinery used to identify reservoirs and extract crude oil and natural gas from the earth’s surface or seabed.
In major oil producing countries like Angola, Libya, and Nigeria, oil revenues play a critical role in national budgets, contributing substantially to government income and driving significant development projects.
Data from Statista shows Libya generated approximately $36.34 billion in crude oil export revenue in 2023, underscoring the resource’s economic importance. Angola saw its crude oil export revenue rise to about $20 billion in 2021, an increase from $18.3 billion the previous year.
Approximately 92% of Nigeria’s export value comes from mineral fuels, oils, and distillation products. In 2021, these resources contributed about $42 billion to the nation’s export revenue.
Similarly, Algeria’s petroleum exports were valued at over $26 billion in 2023, reflecting the significant role oil plays in bolstering the country’s economy.
An increase in the number of active rigs usually correlates with higher oil production. More rigs mean more wells can be drilled, leading to increased extraction from known reserves or exploration of new ones.
A decline in rig counts can signal reduced exploration and drilling activities, resulting in a slowdown in oil production over time.
According to Statista, there has been a noticeable decline in the number of oil rigs globally since 2014, when the oil boom led to a spike in rig deployment not seen since 1985.
In 2023, the average number of active oil rigs was 1,814 units, roughly half of what it had been in 2014. The recent OPEC monthly oil report puts this figure at 1,825 as of October 2024.
The table below shows the African countries with active oil rigs according to the OPEC Monthly Oil Market report for November 2024;
| S/N | Countries | Rig Count |
|---|---|---|
|
1 |
Algeria |
42 |
|
2 |
Libya |
18 |
|
3 |
Nigeria |
11 |
|
4 |
Gabon |
3 |
|
5 |
Congo |
1 |
