7,942 oil service permits, 49 licences granted in Q1 — Report

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Nigeria issued 7,942 oil and gas industry service permits and 49 upstream monitoring licences in the first quarter of 2026, reflecting sustained activity in the country’s upstream petroleum sector despite a moderation in permit volumes compared to the previous quarter.

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This was disclosed in the Nigerian Upstream Petroleum Regulatory Commission’s Upstream Service Industry Newsletter for the first quarter of 2026.

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According to the report, a total of 7,942 permits were issued under the Oil and Gas Industry Service Permit scheme between January and March 2026, while 49 upstream monitoring and regulation licences were granted during the same period.

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The commission noted that permit volumes declined 22.3 per cent compared to the fourth quarter of 2025 but attributed the moderation to normal regulatory cycles rather than a slowdown in industry activity.

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“A total of 7,942 permits were issued under the OGISP in Q1 2026. This represents a 22.3 per cent decline compared to Q4 2025. Major and specialised permit categories accounted for over 90 per cent of total permits issued,” the report stated.

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The report further stated that the licences covered rig inspections and certifications, hydraulic workover certifications, and vessel licences, among others.

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A breakdown of the licensing activities showed that February recorded the highest level of activity, accounting for 24 licences, or about 49 per cent of the total licences issued during the quarter. Rig-related licences represented approximately 69 per cent of all approvals granted within the period.

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The report further revealed that major and specialised permit categories accounted for more than 90 per cent of all permits issued under the OGISP framework during the quarter.

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According to the commission, the upstream service sector maintained stable performance during the period, supported by sustained licensing activities, permit processing, and ongoing regulatory reforms aimed at improving transparency and operational efficiency in the industry.

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The NUPRC said key policy reforms, licensing advancements, and strategic collaborations undertaken during the quarter helped strengthen investor confidence and support operational activities across the upstream oil and gas value chain.

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The report also highlighted continued progress in the sector, including the signing of a new 11,700-square-kilometre 3D seismic survey agreement and record gas output achieved by key operators during the quarter.

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According to NUPRC data, Nigeria’s active rig count rose to 73 in March 2026 as operators sustained drilling activities and expanded exploration and production programmes.

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The report showed that the number of active rigs stood at 72 in January and February before rising to 73 in March, reflecting continued investment in upstream oil and gas operations.

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Providing an overview of the quarter, the commission stated that the upstream service sector remained resilient despite broader industry challenges. N1.23bn was generated from oil and gas industry service permits.

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“Q1 2026 reflected stable upstream service sector performance, supported by consistent rig activity, sustained licensing (49 UMR licences), and strong OGISP revenue generation of N1.23bn,” the report stated.

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According to the regulator, land operations remained the dominant segment of Nigeria’s drilling activities during the quarter.

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The report noted that land-based rigs remained steady at 52 throughout the three-month period, accounting for the largest share of total drilling activity.

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Offshore operations increased modestly from 11 rigs in January and February to 12 rigs in March, while swamp operations remained unchanged at nine rigs during the period.

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Explaining the trend, the commission said, “The data shows that Nigeria maintained stable rig activity from January to February, with total rigs increasing slightly from 72 to 73 in March.

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“Land operations accounted for the highest number of rigs, as it remained stable in Q1 with 52 rigs and drove the overall increase. Offshore rigs remained steady at 11 January and February and increased to 12 in March, while swamp rigs were constant at 9 throughout the period.”

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The regulator said the performance demonstrated continued operational stability across Nigeria’s upstream sector.

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“Overall, the trend reflects stable drilling operations, with marginal growth concentrated in land-based activities,” the report added.

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More significantly, the commission revealed that drilling activity increased substantially compared with the corresponding period of last year.

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“Q1 2026 showed an increase (22.6 per cent) in total rig count compared to Q1 2025, indicating strong growth in upstream activity,” the report stated.

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The increase suggests that operators are intensifying development activities amid ongoing reforms introduced under the Petroleum Industry Act and efforts by the regulator to attract investment into the sector.

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The latest figures suggest that Nigeria’s upstream industry maintained positive momentum in the first quarter of 2026, with increased drilling activity, sustained licensing and ongoing exploration programmes providing fresh signals of investor confidence in the country’s oil and gas sector.

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