1977 | Government established the Nigerian National Petroleum Corporation (NNPC) by Decree 33, (NNOC & MPR extinguished). 1963 | Elf discovered Obagi field and Ubata gas field, 1965 | Agip found its first oil at Ebocha and Phillips Oil Company started operations in Bendel State, 1966 | Elf started production in Rivers State with 12,000 b/d, 1967 | Phillips drilled its first well (Dry) at Osari – I and made its first oil discovery at Gilli-Gilli -I, 1968 | Mobil Producing Nigeria Limited) was formed and the Gulf’s Terminal at Escravos was commissioned. Thereafter, license was given to D'Arcy Exploration Company and Whitehall Petroleum. His advocates say he was framed as he was well known for his criticism of Nigeria's military regime and oil dealings. The two begun production in … Nigeria - Nigeria - The arrival of the British: The Sokoto jihad and the Yoruba wars stimulated the slave trade at a time when the British were actively trying to stop it. Shell made another giant stride in 1965 when the company discovered the EA field in the shallow waters of the southeastern part of Warri. Following the end of the war, licences were given to the D’Arcy Exploration Company and Whitehall Petroleum but these companies were unable to find oil of commercial value, subsequently, they returned their licenses in 1923. Thereafter, license was given to D’Arcy Exploration Firm and Whitehall Petroleum. The early history (1908 – 1960) – The history of oil exploration in Nigeria dates back to 1908 when Nigerian Bitumen Corporation conducted exploratory work in the country; however, the firm left the country at the onset of World War I. Crude oil is definitely one of the top 20 mineral resources in Nigeria and the history of oil exploration in Nigeria goes back to 1903 when Nigerian Bitumen Corporation led exploratory work in the nation. Both Chevron and Royal Dutch Shell have worked with the NNPC for decades and coordinate much of the country's oil operations. Oil industry officials often blame greed and political maneuvering for the pipeline disasters. Since oil operations began, 546 million gallons of oil have spilled into Nigeria's Niger Delta.Â, That's the equivalent of an Exxon Valdez Disaster happening every year for nearly 50 years.Â, The most controversial spills come from pipeline blasts. March 2008 - Nigeria’s first 4D seismic acquisition in deepwater oil and gas operations was achieved at SNEPCo-operated Bonga field, 120km southwest of the Niger Delta. Local government and community leaders say destitute villagers are forced into pipeline vandalism because of vast socio-economic inequity. At the beginning of 1958 – other foreign companies joined the operations in the crude oil production. The history of oil industry is one of radical shifts in control and dominance. Drilling activities commenced in 1951 with the first test well drilled in Owerri area and oil was discovered in non-commercial quantities at Akata, near Eket in 1953. 1971 | Shell’s Forcados Terminal and Mobil’s terminal at Qua Iboe commissioned, 1973 | First Participation Agreement; Federal Government acquires 35% shares in the Oil Companies Ashland started PSC with then NNOC (NNPC). Texaco operates the Pennington Terminal. HISTORY OF THE NIGERIAN PETROLEUM INDUSTRY Oil was discovered in Nigeria in 1956 at Oloibiri in the Niger Delta after half a century of exploration. 1938 | Shell D’ Arcy granted Exploration license to prospect for oil throughout Nigeria. Thus, since the discovery of crude oil in commercial quantity, the economic structure of Nigeria has changed considerably. The history of oil in Nigeria began before oil was even discovered in 1956 at Oloibiri, Bayelsa. It was the same year NNPC commenced its retail outlet scheme. But you can't lay it on our doorstep."Â. Oil was first discovered in Nigeria in the mid-1950s after decades of fruitless exploration. The history of crude oil in Nigeria involves the various events that led to the discovery of petroleum in the country up until these modern times. 1955 | Mobil Oil Corporation started operations in Nigeria. The company spent over 6 million pounds prior to this discovery but they remain unrelenting in their search for crude of commercial quantity. Finally, the company discovered commercially available oil in Oloibiri, Nigeria which led to many more discoveries over the last 60 years. However, Nigeria ceased exports to the US in July 2014 because of the impact of shale production in America; India is now the largest consumer of Nigerian oil. A new body – The Nigerian National Oil Corporation (NNOC) - was created to handle direct commercial operational activities in the oil industry on behalf of the Federal Government, while the Department of Petroleum Resources in the Federal Ministry of Mines and Power continued to exercise statutory supervision and control of the industry. Crude Oil Production in Nigeria averaged 1869.14 BBL/D/1K from 1973 until 2021, reaching an all time high of 2475 BBL/D/1K in November of 2005 and a record low of 675 BBL/D/1K in February of 1983. Nigeria now becomes one of the wealthiest countries in Africa thanks to its large reserves of oil (petroleum now, rather than the palm oil of the previous century). Pipeline syphoning still occurs. The industry needs to put their money where their mouth is if it expects to end communal violence. Local land and water sources have been fouled by the oil industry, rendering areas useless that once kept fishermen and farmers employed. 1979 | Third Participation Agreement (throughout NNPC) increases equity to 60%; Fourth Participation Agreement; BP’s shareholding nationalised, leaving NNPC with 80% equity and Shell 20% in the joint Venture, 1984 | Agreement consolidating NNPC/Shel1 joint Venture, 1986 | Signing of Memorandum of Understanding (MOU). The first oil well is alleged to have been dug in shush Iran about 500BC[2] and the first truly modern and commercial drilling of oil […] In 1995, Ken Saro-Wiwa, an environmental activist from Nigeria's Ogoniland in the Niger Delta, and eight others were executed after spending months in prison. Currently, Nigeria is the largest oil producer in Africa and the production of petroleum in the country plays a dominant role in the economy with over 90% of gross earnings coming from crude oil. History of Oil and Gas in Nigeria. 1970 | Mobil started production from 4 wells at Idoho Field and Agip started production as the Department of Petroleum Resources Inspectorate commenced operations. After the Biafran war in 1970, there was a rise in oil prices and the country was able to reap the instant riches from its oil production and a year later, Nigeria joined the Organisation of Petroleum Exporting Countries (OPEC). Pan Ocean Corporation drilled its first discovery well at Ogharefe – I, 1974 | Second Participation Agreement, Federal Government increases equity to 55% and Elf formally changed its name from “Safrap.” Ashland’s first oil discovery at Ossu –I, 1975 | Agip carried out its first Oil lifting from Brass Terminal and the DPR was upgraded to the Ministry of Petroleum Resources, 1976 | MPE renamed Ministry of Petroleum Resources (MPR) and Pan Ocean commenced production via Shell-BP’s pipeline at a rate of 10,800 b/d. The discovery was made by Shell-BP, at the time the sole concessionaire. Aret Adams, a Nigerian oil industry analyst and former government adviser, told the AP. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Harnessing Nigeria's Gas Resources. It was this year the Elf’s Odudu blend, offshore OML 100 cam on-stream. Standard Oil, Royal Dutch Shell, and British Petroleum: The Original Super-Majors John D. Rockefeller, who began his career in refining, became the industry’s first “baron” in 1865, when he formed Standard Oil Company. Nigeria joined the oil producers in 1958 when its first oilfield came on stream at 5,100 b/d. wing Provides an overview of Nigeria, including key events and facts about this oil-rich country with multiple ethnic and religious divides. The most controversial spills come from pipeline blasts. Oil was discovered in Nigeria in 1956 at Oloibiri in Niger Delta after half a century of exploration. In June 1956, Shell-BP discovered oil in the Oloibiri community. Shell owns two, while Mobil, Chevron, Texaco, and Agip own one each. The early historical past (1908 – 1960) – The history of oil exploration in Nigeria dates back to 1908 when Nigerian Bitumen Company performed exploratory work within the country; nevertheless, the agency left the country on the onset of World Struggle I. Charred remains found in the ruins were still grasping funnels and cans.Â, Some in the town refused medical help for fear of being blamed for the disaster, causing a spike of deaths due to untreated burns and wounds.Â. They were accused of killing other environmentalists in the region. 1962 | Elf and Agip Oil started operations in Nigeria. Since oil operations began, 546 million gallons of oil have spilled into Nigeria's Niger Delta. Mr Inengite was 19 years old when the foreign engineers came looking for oil … An Introduction to Nigerian Oil and Gas A little-known fact, even amongst Nigerians, is that oil production started in Nigeria over 100 years ago, in September 1909 to be precise. According to USA TODAY, a total of 1,082 deaths were attributed to the disaster.Â. Petroleum exploration in Africa was started by Shell in the 1930s and today still holds a very high deposit of Hydrocarbons, that have not been drilled. Some companies were given license to explore natural mineral resources. 6 Nigeria is no exception and the published oil historiography includes no article or book devoted exclusively to the topic. #HistoryVille pic.twitter.com/5zfUeheT9w 1989 | Fifth Participation Agreement; (NNPC=60%, Shell = 30%, Elf=5%, Agip=5%). Nigeria - History of Oil Exploration. Since the late 1960s it has been based primarily on the petroleum industry. 2.2 The History of Oil and Gas in Nigeria. Nigeria consumes 428,000 barrels per day (B/d) of oil as of the year 2016.; Nigeria ranks 37th in the world for oil consumption, accounting for about 0.4% of the world's total consumption of 97,103,871 barrels per day. The early history (1908 – 1960) – The history of oil exploration in Nigeria dates back to 1908 when Nigerian Bitumen Corporation conducted exploratory work in the country; however, the firm left the country at the onset of World War I. The discovery was made by Shell-BP, at the time the sole concessionaire. During the late sixties and early seventies, Nigeria was producing over 2 million barrels of crude oil per day and by 2010, the figured had increase to 4million barrels per day. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream. Production grew fast, and today, Nigeria pumps close to 2 million BPD, which makes it the largest producer of crude oil in Africa. British Petroleum, for example, spent £33,334 on a futile search for oil between 1918 and 1928; 5 the history of oil exploration in many of the African oil producing and exporting states seems to be remarkably brief. And they would prefer to die with their fear. Over the past two decades, at least a dozen pipeline disastershave killed thousands in Nigeria. The occurrence and discovery of petroleum is no new phenomenon. History of the Nigerian Petroleum Industry Oil was discovered in Nigeria in 1956 at Oloibiri in the Niger Delta after half a century of exploration. Agip operates the Brass Terminal in Brass, a town 113 kilometres (70 miles) southwest of Port Harcourt and has a storage capacity of 3,558,000 barrels (565,700 m3). At the beginning of World War I the corporations operations were halted. From that day the history of crude oil in Nigeria was made. Now this territory is in Bayelsa. But by 1960, other oil companies had been given exploratory rights in the onshore and offshore areas adjoining the Niger Delta were extended to other foreign companies. Ten year later, Shell D’arcy Petroleum Development Company of Nigeria, a consortium of Shell and British Petroleum (then known as Anglo-Iranian) began exploratory work following the issue of a new license covering 920,000 square kilometres (357,000 square miles). They are afraid of being arrested. Shell also owns the Forcados Terminal, which is capable of storing 13 million barrels (2,100,000 m3) of crude oil in conjunction with the nearby Bonny Terminal. Notify me of follow-up comments by email. But when the World War 1 commenced, the firm had to stop operations. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Overall, we’ve highlighted the major events in the history of crude oil in the country below: Abass is a seasoned freelance writer and internet marketer. Initially, Shell-BP was appointed as the sole concessionaire of oil exploration in the country. That was still four years before Nigeria gained its independence. It created a fire that killed hundreds within hours and destroyed surrounding farmland and villages.Â, Early reports said that the explosion was caused by thieves trying to break open the pipeline in order to siphon off oil. Before the explosion, Nigerians outside of Jesse traveled there to scoop up oil that had been leaking from the pipeline. That's not happening. Due to the lack of technological and financial resources of small oil companies, large oil companies took over the exploration of commercial oil in the country. Mobil operates primarily out of the Qua Iboe Terminal in Akwa Ibom State, while Chevron owns the Escravos Terminal located in Delta State and has a storage capacity of 3.6 million barrels (570,000 m3). Over the past two decades, at least a dozen pipeline disasters have killed thousands in Nigeria.Â, Many pipeline explosions are said to have been caused by villagers tampering with the oil lines. They negotiated major concessions, including new schools, health clinics, electricity and water systems for the area around Escravos, Nigeria.Â. Oil History in Nigeria In 1956, the British Empire found oil in Nigeria. Aret Adams, a Nigerian oil industry analyst and former government adviser, 70 percent of Nigerians live below the poverty line, thieves trying to break open the pipeline, scoop up oil that had been leaking from the pipeline, Nigeria's environment has been harmed as well, Nigerian militants regularly kidnap foreign oil workers, 150 Nigerian women occupied a Chevron facility for 10 days, accused of killing other environmentalists in the region, SoCal Gas Has Permanently Stopped Leak in Gas Well Above Porter Ranch, State Confirms, Must Watch Docs: Five Thought-Provoking Energy Films For Summer, Is Climate Change "Not Debatable"? Other countries that buy Nigeria’s oil include UK, Germany and China. After that, British Petroleum and Royal Dutch Shell started producing crude oil and selling it. 2001 | Production of Okono offshore field. 1991 | Signing of Memorandum of Understanding & joint Venture Operating Agreement (JOA), 1993 | SNEPCO signed the Production Sharing Contracts in a Sixth Participation Agreement with the likes of NNPC=55%, Shell=30%, Elf= 10% and Agip=5%. 2002 | New PSCs agreement signed and the downstream oil sector was liberalised. On Oct. 23, the fire was finally put out by an American firefighting company. The early history (1908 - 1960) - The history of oil exploration in Nigeria dates back to 1908 when Nigerian Bitumen Corporation conducted exploratory work in the country; however, the firm left the country at the onset of World War I. 1961 | Shell’s Bonny Terminal was commissioned and Texaco Overseas started operations in Nigeria. Royal Dutch Shell eventually paid out $15.5 million in 2009, but did not accept accountability. History of Crude Oil in Nigeria: Years & Events Timeline 1908 | Nigerian Bitumen Co. & British Colonial Petroleum commenced operations around Okitipupa. Currently, there are six petroleum exportation terminals in the country. In the mid-1970s the output is more than two million barrels a day, the value of which is boosted by the high prices achieved during the oil … Nigeria made history in April 2006 by becoming the first African country to completely pay off its debt (estimated $30 billion) owed to the Paris Club. In June 2011, sabotaged pipelines cut into production so much that Shell declared force majeure, freeing itself from delivery obligations.Â. Instead, the oil company called the payout a âhumanitarian gestureâ. "It smacks of wickedness, hard-heartedness," he says. Nevertheless, each companies […] 1995 | SNEPCO starts drilling first Exploration well. Other equally significant developments in the history of crude oil exploration and production include the first shipment of oil from Nigeria in 1958, the 1961 commissioning of Shell’s Bonny Terminal, the dawn of Texaco Overseas operations in Nigeria in 1961, the 1962 commencement of Safrap (Elf) and the NAOC operations in Nigeria, and the 1963 Elf discovery of oil in the Obagi field. As much as 10 percent of the country's mangrove forests have disappeared due to oil pollution and growing areas of farmland are proving uninhabitable.Â, Many groups have organized against the management of Nigeria's oil. Nigerian militants regularly kidnap foreign oil workers either to demand control of oil revenues or increase jobs and improve working conditions.Â, Others practice nonviolence through protesting and activism, which have been successful. That's the equivalent of an Exxon Valdez Disaster happening every year for nearly 50 years.
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