Nestoil Deploys Indigenous Rig, Increases Oil Output From OML 42

Published by Sabastine Enobakhare

Nestoil Group has completed workover operations on two producing wells in Oil Mining Lease (OML) 42 using a drilling rig operated entirely by a Nigerian crew, as part of efforts to increase crude oil production from the asset. The successful intervention is expected to support higher output by improving the performance and productivity of the existing wells.

The company said the deployment of its Pathfinder 500 rig represented the rig’s first productive assignment since it was acquired about eight years ago. The milestone also positions Nestoil Group to begin additional in-field drilling activities across OML 42, strengthening its capacity to develop and optimize the asset with its own drilling equipment.According to a statement issued by the company at the weekend, Scorpio Drilling International, a strategic business unit of Nestoil Group, mobilized the Pathfinder 500 to the field.

The rig completed workover operations on the two producing wells without any Health, Safety and Environment (HSE) incident, underscoring the company’s focus on maintaining safe operating standards throughout the project.Following the completion of the work, the rig was safely demobilized and returned to base.

Nestoil Group said the operation contributed to incremental oil production from the asset, adding to the company’s efforts to improve output through targeted well interventions and further field development.The Pathfinder 500 is one of two rigs acquired by Nestoil Group under an investment estimated at about $28 million. The second rig, known as the Scorpio 300, forms part of the company’s broader drilling and production infrastructure.The latest development is particularly significant for the company because the Pathfinder 500 had been inactive for approximately eight years following its acquisition.

During that period, uncertainty persisted over whether the rig would ultimately be put to productive use. Chairman of Nestoil/Neconde Group, Dr Ernest Azudialu Obiejesi, described its successful deployment as a defining milestone for the group and evidence of Nigeria’s expanding indigenous capacity to execute drilling operations.Obiejesi explained that the decision to acquire the rigs was driven by the high costs and operational challenges involved in relying exclusively on hired drilling equipment in Nigeria.

As an asset owner in OML 42, the group needed dedicated drilling capacity to carry out workovers, restore mature wells to production and, over time, drill new wells as existing fields progress through their production life cycles.With the workover campaign successfully completed, he said the company was now in a stronger position to advance its planned in-field drilling program.

“This is a defining moment for us,” Obiejesi said, emphasizing that the rig’s successful mobilization, incident-free operations and safe demobilization marked a major achievement after years of inactivity. The outcome also demonstrated the group’s ability to manage the full operational cycle safely and efficiently.

He further emphasized the importance of the operation being executed entirely by Nigerian personnel, describing it as a practical demonstration of the skills and capabilities available within the country’s indigenous oil and gas workforce.According to him, Nigerians handled every stage of the project, from refurbishing and deploying the rig to assembling and managing its crew, without foreign partnership or external support.

He added that the team currently operating the rig is entirely Nigerian, with Nigerians accounting for 100 per cent of the crew.Obiejesi said the technical expertise needed for the project was the result of decades of capacity development facilitated by international oil companies operating in Nigeria. Through sustained training and practical experience, he explained, Nigerian professionals had developed the skills required to manage complex drilling operations and maintain specialized oilfield equipment.He argued that the experience gained by Nigerian workers across the oil and gas industry had strengthened the country’s reputation as a source of qualified drilling personnel for other oil-producing countries.

The depth of this expertise, he noted, demonstrated the progress made in developing local technical capacity beyond the domestic market.Obiejesi commended the teams at Scorpio Drilling International, along with the other personnel who contributed to the rehabilitation, mobilization and operation of the Pathfinder 500.

He said their combined efforts were central to returning the rig to service and ensuring that it could support drilling activities effectively.The Nestoil chairman further said the accomplishment extended beyond the company’s immediate production targets. He noted that Scorpio Drilling International’s ownership of two rigs placed the company among the indigenous operators with locally owned drilling assets active in Nigeria, a position that reflected growing participation by Nigerian companies in the sector’s higher-value activities.He described indigenous ownership of drilling assets as an important measure of local capacity in oil-producing jurisdictions.

In his view, ownership of such equipment enables domestic companies to retain more technical knowledge and operational value while reducing dependence on foreign-owned resources.Nestoil Group, through Neconde Energy, holds interests in OML 42 and has continued investing in drilling, workover and well-services infrastructure.

These investments are intended to support the asset’s ongoing operations and help sustain and increase production over time.Scorpio Drilling International operates the Pathfinder 500 and Scorpio 300 rigs, supporting drilling activities for Nestoil Group and other clients across Nigeria’s oil and gas industry.

Through these operations, the company provides rig capacity and related drilling services for development, maintenance and production-focused activities in the country’s upstream sector.The company said the latest workover campaign is part of its broader strategy to redevelop OML 42 and identify additional in-field drilling opportunities. The campaign is intended to support the continued optimization of the mature asset, help sustain production levels and enable further recovery from existing fields through targeted well intervention and redevelopment activities.