History of Oil and Gas in Nigeria

The early history (1908 – 1960) – The history of oil exploration in Nigeria dates back to 1908 when Nigerian Bitumen Company carried out exploratory perform in the country having said that, the agency still left the country at the onset of Planet War I. Thereafter, license was given to D’Arcy Exploration Company and Whitehall Petroleum. Nonetheless, both equally corporations did not uncover oil of professional price and returned their licenses. In 1923 new license masking 357,000 sq. miles was supplied to a new organization referred to as Shell D’arcy Petroleum Progress Company of Nigeria. The new agency was a consortium of Shell and British Petroleum (then identified as Anglo-Iranian). The enterprise began exploratory operate in 1937. The consortium was granted license to examine oil all around the territory of Nigeria but in 1951 and then among 1955 and 1957, the acreage allotted to the corporation in the primary license was lessened. Drilling functions started off in 1951 and the 1st check effectively was drilled in Owerri place. Shell-BP in the pursuit of commercially available petroleum located oil in Oloibiri, Nigeria in 1956 and arrived on stream generating 5,100 bpd. Production of crude oil commenced in 1957 and in 1960, a complete of 847,000 tonnes of crude oil was exported.

Important Dates in Early Heritage of Nigerian Oil and Fuel Field

1908: Nigerian Bitumen Co. & British Colonial Petroleum commenced operations around Okitipupa.

1938: Shell D’ Arcy granted Exploration license to prospect for oil during Nigeria.

1955: Mobil Oil Company started off functions in Nigeria.

1956: To start with productive nicely drilled at Oloibiri by Shell D’Arcy

1956: Adjusted identify to Shell-BP Petroleum Growth Enterprise of Nigeria Constrained.

1958: Very first shipment of oil from Nigeria.

1960: Other non-British companies had been granted license to examine for oil like Tenneco

The Mid Heritage (1961 – 1990) – at this period of time, Nigeria was just understanding its most up-to-date grounds as an oil exporter and acquiring its export sector. It was during this time that business exploitation of the country’s reserves started with the Nigerian Govt introducing its very first rules governing the taxation of oil market income in which the gains were being to be shared 50-50 involving the government and the oil firms. By the afterwards part of the 1960s, the Nigerian Governing administration considered strategies to utilize the useful resource becoming exploited by the western nations around the world to acquire the region and with this imagined formulated its very first settlement for using equity in just one of the making firms, the Nigerian Agip Oil Enterprise, jointly owned by Agip of Italy and Phillips of the United States. The option to acquire up an fairness stake-in effect the very first phase toward the generation of the NNPC-was not, however, exercised until eventually April 1971. In 1970, the close of the Biafran war coincided with the increase in the entire world oil cost, and Nigeria was capable to reap quick riches from its oil production.

Significant Dates in Mid Record of Nigerian Oil and Fuel Business

1961: Shell’s Bonny Terminal was commissioned Texaco Overseas started functions in Nigeria.

1962: Elf started off operations in Nigeria. (As Safrap), Nigeria Agip Oil Firm begun operations in Nigeria

1963: Elf learned Obagi area and Ubata fuel field, Gulf’s initial creation

1965: Agip observed its initially oil at Ebocha, Phillips Oil Firm commenced operations in then Bendel Point out

1966: Elf begun generation in Rivers Point out with 12,000 b/d

1967: Phillips drilled its initially perfectly (Dry) at Osari -I, Phillips initially oil discovery at Gilli-Gilli -I

1968: Mobil Creating Nigeria Minimal) was formed, Gulf’s Terminal at Escravos was commissioned

1970: Mobil begun generation from 4 wells at Idoho Industry, Agip started out creation, Section of Petroleum Methods Inspectorate started off.

1971: Shell’s Forcados Terminal Commissioned, Mobil’s terminal at Qua Iboe commissioned

1973: Initially Participation Arrangement Federal Authorities acquires 35% shares in the Oil Corporations, Ashland commenced PSC with then NNOC (NNPC), Pan Ocean Corporation drilled its very first discovery very well at Ogharefe -I

1974: Second Participation Arrangement, Federal Authorities boosts fairness to 55%, Elf formally adjusted its name from “Safrap”, Ashland’s to start with oil discovery at Ossu -I

1975: Initially Oil lifting from Brass Terminal by Agip, DPR upgraded to Ministry of Petroleum Assets

1976: MPE renamed Ministry of Petroleum Assets (MPR), Pan Ocean commenced generation by using Shell-BP’s pipeline at a amount of 10,800 b/d

1977: Govt recognized Nigerian Countrywide Petroleum Company (NNPC) by Decree 33, (NNOC & MPR extinguished).

1979: 3rd Participation Settlement (throughout NNPC) boosts fairness to 60%, Fourth Participation Settlement BP’s shareholding nationalized, leaving NNPC with 80% fairness and Shell 20% in the joint Venture, Altered name to Shell Petroleum Advancement Firm of Nigeria (SPDC)

1984: Arrangement consolidating NNPC/Shel1 joint Undertaking.

1986: Signing of Memorandum of Comprehending (MOU)

1988: Formation of 12 strategic business units, masking the full spectrum of oil business functions: Nigerian Petroleum Progress Corporation (NPDC), Nigerian Fuel Corporation (NGC), Solutions and Pipelines Advertising Business (PPMC), Integrated Data Services Restricted (IDSL), Nationwide Engineering and Technological Company Confined (NETCO),Hydrocarbon Companies Nigeria Restricted (HYSON), Warri Refinery and Petrochemical Co. Minimal (WRPC), Kaduna Refinery and Petrochemical Co. Restricted (KRPC), Port Harcourt Refining Co. Limited (PHRC), NNPC Retail, Duke Oil

1989: Fifth Participation Settlement (NNPC=60%, Shell = 30%, Elf=5%, Agip=5%).

New Historical past (1991 – day) –

1991: Signing of Memorandum of Knowing & joint Undertaking Operating Agreement (JOA)

1993: Production Sharing Contracts signed -SNEPCO, Sixth Participation Arrangement (NNPC=55%, Shell=30%, Elf= 10%, Agip=5%), the coming on-stream of Elf’s Odudu blend, offshore OML 100.

1995: SNEPCO commences drilling very first Exploration well, NLNG’s Ultimate Investment decision Final decision taken

1999: NLNG’s 1st cargo of Gasoline out of Bonny Terminal.

2000: NPDC/NAOC Services Deal signed

2001: Creation of Okono offshore discipline.

2002: New PSCs agreement signed, Liberalization of the downstream oil sector, NNPC commences retail outlet plan.