NUPRC Generated N1.24bn from Oil Service Permits in Q1

Nigeria's upstream petroleum service industry demonstrated resilience in the first quarter of 2026, with the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) collecting N1.24 billion in revenue from industry service permits. The period saw stable rig operations, consistent licensing activities, and ongoing regulatory reforms aimed at enhancing transparency and investor confidence.

The NUPRC's Q1 2026 Upstream Service Industry Newsletter reported that revenue generated under the Oil and Gas Industry Service Permit (OGISP) scheme reached N1.237 billion, with February yielding the highest monthly earnings at N574.1 million. The specialized services category accounted for approximately 90% of the total revenue.

While permit volumes saw a slight moderation compared to the previous quarter, the commission attributed this to normal regulatory cycles rather than a slowdown in industry activity. Upstream operations remained robust, supported by the consistent operation of 72 to 73 rigs. The NUPRC also issued 49 Upstream Monitoring and Regulation (UMR) licenses and processed 7,942 OGISP permits. Key operators reported a record gas output of 2.2 billion cubic feet.

The 49 UMR licenses covered rig, hydraulic workover, and vessel certifications, with February seeing the highest number of approvals at 24, nearly half of the quarterly total. Rig licenses constituted about 69% of all approvals, reflecting ongoing investment in drilling operations and asset certification. Nigeria maintained stable rig operations throughout the quarter, with land operations being the dominant segment with 52 rigs. Offshore rigs increased to 12 by March, while swamp operations remained steady with nine rigs.

Compared to the first quarter of 2025, the total rig count rose by 22.6%, which the NUPRC cited as evidence of increasing upstream activity and sustained investment in exploration and production. The commission noted that Q1 2026 reflected stable performance, driven by consistent rig activity, sustained licensing, and strong OGISP revenue, with specialized services being the primary revenue driver.