Early history (1908 – 1960) – The history of oil exploration in Nigeria dates back to 1908 when the Nigerian Bitumen Corporation conducted exploration work in the country; however, the company left the country at the start of World War I. Subsequently, the license was granted to the D’Arcy Exploration Company and Whitehall Petroleum. However, both companies found no oil of commercial value and returned their licenses. In 1923, a new license covering 357,000 m2. miles was turned over to a new company called the Shell D’arcy Petroleum Development Company of Nigeria. The new firm was a consortium of Shell and British Petroleum (then known as Anglo-Iranian). The company began exploration work in 1937. The consortium was granted a license to explore for oil throughout Nigeria, but in 1951 and then between 1955 and 1957, the acreage allocated to the company in the original license was reduced. Drilling activities began in 1951 and the first test well was drilled in the Owerri area. Shell-BP in search of commercially available oil found oil at Oloibiri, Nigeria in 1956 and began producing 5,100 bpd. Crude production began in 1957 and in 1960 a total of 847,000 tons of crude were exported.
Major dates in the early history of the Nigerian oil and gas industry
1908: Nigerian Bitumen Co. and British Colonial Petroleum began operations around Okitipupa.
1938: Shell D’Arcy obtained an exploration license to search for oil throughout Nigeria.
1955: Mobil Oil Corporation started operations in Nigeria.
1956: First successful well drilled at Oloibiri by Shell D’Arcy
1956: Name change to Shell-BP Petroleum Development Company of Nigeria Limited.
1958: First shipment of oil from Nigeria.
1960: Other non-UK companies received a license to explore for oil such as Tenneco
The middle story (1961 – 1990) – in this period, Nigeria was just getting the hang of it as an oil exporter and developing its export market. It was during this time that the commercial exploitation of the country’s reserves began when the Nigerian government introduced its first regulations governing the taxation of profits from the oil industry in which profits were to be shared 50-50 between the government and the companies. oil companies. In the late 1960s, the Nigerian government considered ways to use the resource being exploited by Western countries to develop the country and with this came its first agreement to take shares in one of the producing companies, the Nigerian Agip Oil Company. jointly owned by Agip of Italy and Phillips of the United States. However, the option to acquire a shareholding – in effect, the first step towards the creation of the NNPC – was not exercised until April 1971. In 1970, the end of the Biafran War coincided with the increase in the world price of oil. oil, and Nigeria was able to reap instant riches from its oil production.
Major dates in the middle history of the Nigerian oil and gas industry
1961: Commissioning of Shell’s Bonny Terminal; Texaco Overseas started operations in Nigeria.
1962: Elf started operations in Nigeria. (As Safrap), Nigeria Agip Oil Company started operations in Nigeria
1963: Elf discovered the Obagi field and the Ubata gas field, the first production in the Gulf
1965: Agip found its first oil in Ebocha, Phillips Oil Company began operations in the then state of Bendel
1966: Elf started production at Rivers State with 12,000 b/d
1967: Phillips drilled its first (dry) well at Osari-I, Phillips’ first oil discovery at Gilli-Gilli-I
1968: Mobil Producing Nigeria Limited), the Gulf terminal at Escravos was commissioned
1970: Mobil started production from 4 wells in the Idoho field, Agip started production, started the Petroleum Resources Inspection Department.
1971: Commissioning of Shell’s Forcados Terminal, commissioning of the Mobil terminal in Qua Iboe
1973: First Participation Agreement; Federal government buys 35% shares of oil companies, Ashland started PSC with then NNOC (NNPC), Pan Ocean Corporation drilled its first discovery well at Ogharefe -I
1974: Second Participation Agreement, Federal Government increases share capital to 55%, Elf formally changed its name from “Safrap”, Ashland’s first oil discovery in Ossu -I
1975: First oil survey from Brass Terminal by Agip, DPR upgraded to Ministry of Petroleum Resources
1976: MPE renamed Ministry of Petroleum Resources (MPR), Pan Ocean started production via Shell-BP pipeline at a rate of 10,800 b/d
1977: The government established the Nigerian National Petroleum Corporation (NNPC) by Decree 33 (NNOC and MPR defunct).
1979: Third Participation Agreement (throughout NNPC) increases capital to 60%, Fourth Participation Agreement; BP’s shareholding was nationalized, leaving NNPC with 80% of the capital and Shell with 20% in the joint venture. Name changed to Shell Petroleum Development Company of Nigeria (SPDC).
1984: Agreement that consolidates the joint venture NNPC/Shel1.
1986: Signature of the Memorandum of Understanding (MOU)
1988: Formation of 12 strategic business units, covering the full spectrum of oil industry operations: Nigerian Petroleum Development Company (NPDC), Nigerian Gas Company (NGC), Products and Pipelines Marketing Company (PPMC), Integrated Data Services Limited (IDSL ), National Engineering and Technical Company Limited (NETCO), Hydrocarbon Services Nigeria Limited (HYSON), Warri Refinery and Petrochemical Co. Limited (WRPC), Kaduna Refinery and Petrochemical Co. Limited (KRPC), Port Harcourt Refining Co. Limited (PHRC) ), NNPC Retail, Duke Oil
1989: Fifth Participation Agreement; (NNPC=60%, Shell=30%, Elf=5%, Agip=5%).
Recent History (1991 – date) –
1991: Signature of the Joint Venture Memorandum of Understanding and Operating Agreement (JOA)
1993: Signed Production Sharing Contracts -SNEPCO, Sixth Participation Agreement; (NNPC=55%, Shell=30%, Elf=10%, Agip=5%), Elf’s Odudu blend going live, OML 100 offshore.
nineteen ninety five: SNEPCO Begins Drilling First Exploration Well, Final NLNG Investment Decision Made
1999: First shipment of NLNG gas from Bonny Terminal.
2000: NPDC/NAOC service contract signed
2001: Okono Marine Field Production.
2002: New PSC Agreement Signed, Downstream Oil Sector Liberalization, NNPC Starts Retail Outlet Scheme.