The early background (1908 – 1960) – The historical past of oil exploration in Nigeria dates back again to 1908 when Nigerian Bitumen Company carried out exploratory operate in the place nonetheless, the agency left the country at the onset of Globe War I. Thereafter, license was provided to D’Arcy Exploration Firm and Whitehall Petroleum. Nevertheless, each organizations did not uncover oil of professional worth and returned their licenses. In 1923 new license covering 357,000 sq. miles was offered to a new company named Shell D’arcy Petroleum Advancement Company of Nigeria. The new organization was a consortium of Shell and British Petroleum (then known as Anglo-Iranian). The organization commenced exploratory work in 1937. The consortium was granted license to explore oil all over the territory of Nigeria but in 1951 and then between 1955 and 1957, the acreage allotted to the firm in the authentic license was reduced. Drilling activities started out in 1951 and the 1st take a look at well was drilled in Owerri area. Shell-BP in the pursuit of commercially offered petroleum found oil in Oloibiri, Nigeria in 1956 and came on stream creating 5,one hundred bpd. Generation of crude oil commenced in 1957 and in 1960, a overall of 847,000 tonnes of crude oil was exported.
Major Dates in Early Background of Nigerian Oil and Gas Industry
1908: Nigerian Bitumen Co. & British Colonial Petroleum commenced functions around Okitipupa.
1938: Shell D’ Arcy granted Exploration license to prospect for oil during Nigeria.
1955: Mobil Oil Company started operations in Nigeria.
1956: First successful effectively drilled at Oloibiri by Shell D’Arcy
1956: Altered identify to Shell-BP Petroleum Development Business of Nigeria Constrained.
1958: First shipment of oil from Nigeria.
1960: Other non-British corporations have been granted license to investigate for oil like Tenneco
The Mid Historical past (1961 – 1990) – at this interval, Nigeria was just comprehension its newest grounds as an oil exporter and developing its export market place. It was throughout this time that industrial exploitation of the country’s reserves started with the Nigerian Authorities introducing its initial laws governing the taxation of oil market revenue in which the profits have been to be shared 50-50 in between the govt and the oil businesses. By ibe kachikwu of the sixties, the Nigerian Govt regarded ways to employ the source getting exploited by the western international locations to produce the region and with this thought formulated its initial agreement for having fairness in 1 of the creating organizations, the Nigerian Agip Oil Company, jointly owned by Agip of Italy and Phillips of the United States. The choice to get up an equity stake-in impact the very first step towards the creation of the NNPC-was not, however, exercised until finally April 1971. In 1970, the finish of the Biafran war coincided with the rise in the entire world oil price, and Nigeria was in a position to experience quick riches from its oil production.
Significant Dates in Mid History of Nigerian Oil and Fuel Business
1961: Shell’s Bonny Terminal was commissioned Texaco Overseas began operations in Nigeria.
1962: Elf commenced operations in Nigeria. (As Safrap), Nigeria Agip Oil Business began functions in Nigeria
1963: Elf discovered Obagi discipline and Ubata gasoline area, Gulf’s 1st production
1965: Agip found its 1st oil at Ebocha, Phillips Oil Company commenced functions in then Bendel Condition
1966: Elf started production in Rivers Condition with twelve,000 b/d
1967: Phillips drilled its 1st nicely (Dry) at Osari -I, Phillips 1st oil discovery at Gilli-Gilli -I
1968: Mobil Producing Nigeria Restricted) was formed, Gulf’s Terminal at Escravos was commissioned
1970: Mobil began creation from four wells at Idoho Subject, Agip began production, Office of Petroleum Resources Inspectorate started.
1971: Shell’s Forcados Terminal Commissioned, Mobil’s terminal at Qua Iboe commissioned
1973: Very first Participation Arrangement Federal Federal government acquires 35% shares in the Oil Organizations, Ashland started PSC with then NNOC (NNPC), Pan Ocean Corporation drilled its 1st discovery effectively at Ogharefe -I
1974: Second Participation Settlement, Federal Authorities will increase equity to 55%, Elf formally changed its title from “Safrap”, Ashland’s 1st oil discovery at Ossu -I
1975: Initial Oil lifting from Brass Terminal by Agip, DPR upgraded to Ministry of Petroleum Resources
1976: MPE renamed Ministry of Petroleum Methods (MPR), Pan Ocean commenced generation through Shell-BP’s pipeline at a rate of ten,800 b/d
1977: Authorities set up Nigerian National Petroleum Company (NNPC) by Decree 33, (NNOC & MPR extinguished).
1979: Third Participation Agreement (during NNPC) increases fairness to 60%, Fourth Participation Arrangement BP’s shareholding nationalized, leaving NNPC with eighty% equity and Shell 20% in the joint Undertaking, Altered title to Shell Petroleum Improvement Firm of Nigeria (SPDC)
1984: Arrangement consolidating NNPC/Shel1 joint Enterprise.
1986: Signing of Memorandum of Knowing (MOU)
1988: Development of 12 strategic organization models, masking the whole spectrum of oil industry functions: Nigerian Petroleum Growth Organization (NPDC), Nigerian Fuel Business (NGC), Items and Pipelines Advertising and marketing Company (PPMC), Integrated Information Providers Limited (IDSL), National Engineering and Complex Business Constrained (NETCO),Hydrocarbon Providers Nigeria Limited (HYSON), Warri Refinery and Petrochemical Co. Limited (WRPC), Kaduna Refinery and Petrochemical Co. Limited (KRPC), Port Harcourt Refining Co. Minimal (PHRC), NNPC Retail, Duke Oil
1989: Fifth Participation Arrangement (NNPC=60%, Shell = 30%, Elf=5%, Agip=5%).
Recent Historical past (1991 – date) –
1991: Signing of Memorandum of Comprehending & joint Enterprise Operating Agreement (JOA)
1993: Creation Sharing Contracts signed -SNEPCO, Sixth Participation Agreement (NNPC=fifty five%, Shell=30%, Elf= ten%, Agip=five%), the coming on-stream of Elf’s Odudu blend, offshore OML 100.
1995: SNEPCO commences drilling very first Exploration nicely, NLNG’s Closing Investment decision Determination taken
1999: NLNG’s 1st shipment of Gasoline out of Bonny Terminal.
2000: NPDC/NAOC Services Contract signed
2001: Production of Okono offshore discipline.
2002: New PSCs agreement signed, Liberalization of the downstream oil sector, NNPC commences retail outlet plan.Read More