Nigeria’s Deepwater Oil Production Falls to Five-Year Low as Aging Rigs Hinder Output
By SpringnewsNG | June 23, 2025
LAGOS, NIGERIA — Nigeria’s deepwater oil production has dropped to its lowest level in five years due to deteriorating offshore drilling infrastructure, industry sources and data reveal.
The decline is primarily attributed to aging rigs and delayed investment in new offshore projects. According to the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), daily production from deepwater fields dipped below 400,000 barrels per day (bpd) in Q2 2025 — a sharp drop from over 600,000 bpd recorded in 2020.
Experts say the outdated equipment and maintenance backlogs are stalling exploration and development in key fields operated by international oil companies. The high cost of replacing or repairing rigs in the offshore terrain is also discouraging new entrants.
“Many of Nigeria’s deepwater facilities are nearing the end of their productive life cycle,” said an energy analyst in Lagos. “Without urgent upgrades or reinvestment, production will continue to decline.”
The situation poses a serious threat to Nigeria’s oil revenues and foreign exchange earnings, especially as the country battles with foreign debt and rising subsidy costs. Industry stakeholders are calling on the government and private sector players to prioritize funding and policy support to rejuvenate the deepwater segment.
Nigeria’s deepwater basin, which includes assets like Bonga, Egina, and Erha, has long been a key contributor to its crude oil exports. However, with no new Final Investment Decisions (FIDs) on major projects since 2020, output has stagnated.
The NUPRC says new licensing rounds and reforms under the Petroleum Industry Act (PIA) could improve investment prospects, but progress has been slow.
If no action is taken soon, Nigeria risks falling behind other oil-producing nations in the Gulf of Guinea, analysts warn.
