The early historical past (1908 – 1960) – The historical past of oil exploration in Nigeria dates again to 1908 when Nigerian Bitumen Company performed exploratory work within the nation; nevertheless, the agency left the nation on the onset of World Conflict I. Thereafter, license was given to D’Arcy Exploration Firm and Whitehall Petroleum. Nevertheless, each firms didn’t discover oil of economic worth and returned their licenses. In 1923 new license masking 357,000 sq. miles was given to a brand new agency known as Shell D’arcy Petroleum Growth Firm of Nigeria. The brand new agency was a consortium of Shell and British Petroleum (then referred to as Anglo-Iranian). The corporate started exploratory work in 1937. The consortium was granted license to discover oil all around the territory of Nigeria however in 1951 after which between 1955 and 1957, the acreage allotted to the corporate within the unique license was lowered. Drilling actions began in 1951 and the primary take a look at effectively was drilled in Owerri space. Shell-BP within the pursuit of commercially accessible petroleum discovered oil in Oloibiri, Nigeria in 1956 and got here on stream producing 5,100 bpd. Manufacturing of crude oil started in 1957 and in 1960, a complete of 847,000 tonnes of crude oil was exported.
Main Dates in Early Historical past of Nigerian Oil and Gasoline Business
1908: Nigerian Bitumen Co. & British Colonial Petroleum commenced operations round Okitipupa.
1938: Shell D’ Arcy granted Exploration license to prospect for oil all through Nigeria.
1955: Mobil Oil Company began operations in Nigeria.
1956: First profitable effectively drilled at Oloibiri by Shell D’Arcy
1956: Modified title to Shell-BP Petroleum Growth Firm of Nigeria Restricted.
1958: First cargo of oil from Nigeria.
1960: Different non-British companies have been granted license to probe for oil like Tenneco
The Mid Historical past (1961 – 1990) – at this era, Nigeria was simply understanding its newest grounds as an oil exporter and growing its export market. It was throughout this time that industrial exploitation of the nation’s reserves started with the Nigerian Authorities introducing its first laws governing the taxation of oil trade income by which the income have been to be shared 50-50 between the federal government and the oil firms. By the later a part of the Sixties, the Nigerian Authorities thought-about methods to make the most of the useful resource being exploited by the western international locations to develop the nation and with this thought formulated its first settlement for taking fairness in one of many producing firms, the Nigerian Agip Oil Firm, collectively owned by Agip of Italy and Phillips of america. The choice to take up an fairness stake-in impact step one towards the creation of the NNPC-was not, nevertheless, exercised till April 1971. In 1970, the tip of the Biafran conflict coincided with the rise on the earth oil worth, and Nigeria was capable of reap instantaneous riches from its oil manufacturing.
Main Dates in Mid Historical past of Nigerian Oil and Gasoline Business
1961: Shell’s Bonny Terminal was commissioned; Texaco Abroad began operations in Nigeria.
1962: Elf began operations in Nigeria. (As Safrap), Nigeria Agip Oil Firm began operations in Nigeria
1963: Elf found Obagi discipline and Ubata fuel discipline, Gulf’s first manufacturing
1965: Agip discovered its first oil at Ebocha, Phillips Oil Firm began operations in then Bendel State
1966: Elf began manufacturing in Rivers State with 12,000 b/d
1967: Phillips drilled its first effectively (Dry) at Osari -I, Phillips first oil discovery at Gilli-Gilli -I
1968: Mobil Producing Nigeria Restricted) was fashioned, Gulf’s Terminal at Escravos was commissioned
1970: Mobil began manufacturing from 4 wells at Idoho Discipline, Agip began manufacturing, Division of Petroleum Assets Inspectorate began.
1971: Shell’s Forcados Terminal Commissioned, Mobil’s terminal at Qua Iboe commissioned
1973: First Participation Settlement; Federal Authorities acquires 35% shares within the Oil Corporations, Ashland began PSC with then NNOC (NNPC), Pan Ocean Company drilled its first discovery effectively at Ogharefe -I
1974: Second Participation Settlement, Federal Authorities will increase fairness to 55%, Elf formally modified its title from “Safrap”, Ashland’s first oil discovery at Ossu -I
1975: First 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 manufacturing by way of Shell-BP’s pipeline at a charge of 10,800 b/d
1977: Authorities established Nigerian Nationwide Petroleum Company (NNPC) by Decree 33, (NNOC & MPR extinguished).
1979: Third Participation Settlement (all through NNPC) will increase fairness to 60%, Fourth Participation Settlement; BP’s shareholding nationalized, leaving NNPC with 80% fairness and Shell 20% within the joint Enterprise, Modified title to Shell Petroleum Growth Firm of Nigeria (SPDC)
1984: Settlement consolidating NNPC/Shel1 joint Enterprise.
1986: Signing of Memorandum of Understanding (MOU)
1988: Formation of 12 strategic enterprise models, masking your complete spectrum of oil trade operations: Nigerian Petroleum Growth Firm (NPDC), Nigerian Gasoline Firm (NGC), Merchandise and Pipelines Advertising and marketing Firm (PPMC), Built-in Information Companies Restricted (IDSL), Nationwide Engineering and Technical Firm Restricted (NETCO),Hydrocarbon Companies Nigeria Restricted (HYSON), Warri Refinery and Petrochemical Co. Restricted (WRPC), Kaduna Refinery and Petrochemical Co. Restricted (KRPC), Port Harcourt Refining Co. Restricted (PHRC), NNPC Retail, Duke Oil
1989: Fifth Participation Settlement; (NNPC=60%, Shell = 30%, Elf=5%, Agip=5%).
Latest Historical past (1991 – date) –
1991: Signing of Memorandum of Understanding & joint Enterprise Working Settlement (JOA)
1993: Manufacturing Sharing Contracts signed -SNEPCO, Sixth Participation Settlement; (NNPC=55%, Shell=30%, Elf= 10%, Agip=5%), the approaching on-stream of Elf’s Odudu mix, offshore OML 100.
1995: SNEPCO begins drilling first Exploration effectively, NLNG’s Closing Funding Determination taken
1999: NLNG’s First cargo of Gasoline out of Bonny Terminal.
2000: NPDC/NAOC Service Contract signed
2001: Manufacturing of Okono offshore discipline.
2002: New PSCs settlement signed, Liberalization of the downstream oil sector, NNPC commences retail outlet scheme.