This research is based on the synthesis and analysis to determine the efficiency and cost effectiveness of nanoparticle materials used in drilling fluid during oilfield exploration process. The study was carried out in the formulation of a waterbased drilling fluid, in which the prepared additives were treated with magnesium oxide (MgO) nanoparticles. The rheological properties of nanoparticle materials, such as flow time, viscosity, shear rate, shear stress, torque difference, and separation of solids and liquids, have been determined. The study also analyzed the fluid loss with respect to time in a manual filter press for low temperature and low pressure versus high pressure and high temperature using filter press hydraulic dead weight assembly in high temperature and high pressure. The nanoparticle used for the study was characterized using Fourier transform infrared spectroscopy (FTIR), X-ray diffractometer and particle size analyzer. Viscosity parameters were optimized using a multi-speed viscometer, lubricity tester and pH meter at effective concentration, as well as contact time, temperature and pressure changes as a function of concentration. The study suggests the use of MgO nanoparticle as an additive for water-based mud exploration in oilfields.