Over 40 percent of the countrys oil production 980,000 bbld of crude oil, and slightly over 1 million bbld of total oil and products is. Investigation of the nigerian oil and gas industry lynda andeobu federation university, australia samanthala hettihewa federation university, australia christopher s. Nigeria energy data, statistics and analysis oil, gas. Over 40 percent of the countrys oil production 980,000 bbld of crude oil, and slightly over 1 million bbld of total oil and products is exported to the united states making nigeria the 4th largest foreign oil supplier to the united states in 2010.
Developments in nigeria s oil and gas industry nigeria is undoubtedly a major participant in the global oil and gas market, being the 15th1 largest oil producer in the world, with proven reserves of around 37 billion barrels, and has the 7th largest natural gas reserves in the world, estimated at about 184 trillion cubic feet2. 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. Oil and gas news latest breaking stories and top headlines. Equatorial guinea and nigeria, for example, oil and gas now account for between. Managing bribery and corruption risks in the oil and gas. Insights from new company disclosures analyzing nigeria s oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigeria s natural resources. Department of petroleum resources, 7, kofo abayomi street, victoria island, lagos. The name petroleum covers both naturally occurring unprocessed crude.
Today the oil and gas industry has the opportunity to redefine its boundaries through digitalization. Review of the nigerian oil and gas sector leadership. Environmental protection in the oil and gas industry in nigeria. An appraisal of oil and gas industry reform and institutional. Oil and gas accounting in the nigerian petroleum industry. Mar 08, 2019 provided the right backing and incentives, nigeria could also be a top global natural gas exporter. Jul 27, 2018 any return of instability to the niger delta would have serious consequences for nigerias oil industry, economic recovery, and political stability. Abstract the petroleum industry in nigeria is the largest industry and mean generator of gross domestic product gdp in the west african nation. For example, the petroleum decree now act was enacted by the military. This is reflected through the nigerian government initiative of increasing local content and ensuring that indigenous companies have a greater part in developing oil and gas assets.
There is no doubt that the nigerian oil and gas industry is plagued with many impending problems. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. Gas is a relatively new dimension in the nigerian oil and gas industry. Following his good work there, he was appointed in 2007, as the group general manager of the national petroleum investment management services napims where he was responsible for ensuring the effective supervision of the nations investment in the upstream of the nigerias oil industry. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958.
However the lack of a gas infrastructure, means that about 75% of associated gas is flared and only 12% reinjected. Abstract the oil industry is the largest and main generator of gross domestic product in nigeria. It has been the major source of revenue which has contributed over 90% on yearly basis. Corporate social responsibility in the oil and gas.
The crude oil production in nigeria is estimated to witness a decline of approximately 7. Conversely, delays or downtime in the value chain have the potential to significantly erode the bottom line. Since the discovery and drilling of oil in nigeria, it is estimated that over 10 million barrels have been spilled. Oct 16, 2018 an introduction to nigerian oil and gas.
Inspite of the huge financial investment made by the nigerian government in the oil and gas industry of. The oil industry and the nigerian environment anyanwu, cbukwudi u. Guidelines for oil and gas industry service companies permit head office. The key environmental issues in the niger delta of nigeria relate to its petroleum industry. The reason for this is that the oil and gas industry in. The success of the restructuring, therefore, will depend on the implementation of these institutions policy functions. In any case, for many oil industry observers in nigeria, the main feature for the entire oil and gas sector reforms is the restructuring of the nigerian national petroleum corporation and its subsidiaries.
The oil and gas sector can best be described as the bride of the nigerian economy, thus if it is well nurtured. The search for crude oil was spearheaded by the nigerian bitumen company, a private entity led by an american engineer, john simon bergheim. The federal government of nigeria fgn, through the nigerian national petroleum corporation nnpc owns majority stakes in all of the joint venture jvs arrangements with the international oil companies iocs operating in the country, owed the. The nigerian oil and gas industry has developed, focusing on increasing indigenous participation in the industry. Corporate social responsibility in the oil and gas industry. Nigeria has been very active in the exploitation and exploration of oil and gas. Environmental policies and strategies in nigeria oil and. Oil and gas production had been hampered in nigeria in the past few years, due. But during 202017, the oil production in the region declined due to combination factors, including low and cyclic oil price environment, political instability, terrorist attacks on the infrastructure, among others. Nigeria is an important oil supplier to the united states. Occupational safety and health in the oil and gas industry.
The paradox of the black gold article pdf available in research in social problems and public policy 18. The nigerian oil industry and renewed instability in the. This makes her the 10 th largest producer of crude oil in the world and the 6 th largest. Wright holmes institute, australia nlng ltd was founded in 1989 to harness the vast natural gas resources in nigeria, one of the highestrisk areas of the world. This covered the six joint ventures, sixtytwo productionsharing contracts and other adhoc assignments. These divestments represent the single largest opportunity for indigenous companies to participate in the upstream oil and gas industry. Recent exports of natural gas to chile, after a lasting absence in international markets resulting from the ongoing production crisis affecting the sector which started in 1998. Department of microbiology university of nigeria nsukka, nigeria.
Nigerian oil industry, including the constitution of nigeria 1999, land use act, 4 petroleum act, 5 associated gas reinjection act, 6 environ mental impact assessment act eia, 7 oil pipelines act, 8 petroleum. Nobody in angolas oil industry would dispute that today it is the angolan state oil company sonangol, not exxonmobil or bp. Gabrich global is pleased to bring to you the history of the nigerian petroleum industry this week. Environmental policies and strategies in nigeria oil and gas. Since the 1960s till date, the nigerian oil and gas industry have continued to play a key role. The production restraint agreement between the opec and nonopec vienna agreement countries is still in place, preserving spare production capacityif. Occupational safety and health in the oil and gas industry in. To ensure the sustainable development of nigerias oil and gas resources across the value chain for our stakeholders through effective regulation, while entrenching world class professionalism, accountability, and transparency. To be a leading regulator in the oil and gas sector. The country has the 11 th largest gas reserves in the world, measuring 187 trillion standard. Since the first oil price shock in 1974, oil has annually produced over 90 percent of nigerias export income. White paper digital transformation initiative oil and gas.
Occupational safety and health in the oil and gas industry in selected subsaharan african countries. Nigerian content policy in the oil and gas industry search wikileaks. Oil and gas accounting in the nigerian petroleum industry article pdf available in research journal of finance and accounting 67. We hope that you find the insights in the publication useful in making your business decisions. Provided the right backing and incentives, nigeria could also be a top global natural gas exporter.
Oil companies operating in nigeria will have sold at least 250,000 barrels per day worth of equity in onshore and shallow water producing assets in the oil producing niger delta region. Issues paper for discussion at the subsaharan african tripartite workshop on occupational safety and health in the oil and gas industry maputo, mozambique, 17. Other companies active in nigerias oil and natural gas industry are addax petroleum, statoil, and several. The discovery was made by shellbp, at the time the sole concessionaire.
Developments in nigerias oil and gas industry nigeria is undoubtedly a major participant in the global oil and gas market, being the 15th1 largest oil producer in the world, with proven reserves of around 37 billion barrels, and has the 7th largest natural gas reserves in the world, estimated at about 184 trillion cubic feet2. To ensure the sustainable development of nigeria s oil and gas resources across the value chain for our stakeholders through effective regulation, while entrenching world class professionalism, accountability, and transparency. The reason for this is that the oil and gas industry in nigeria accounts for about 90%. The oil and gas industry ogi in nigeria plays a crucial role to the. Public regulation of the oil and gas industry in nigeria. Nigeria is the largest oil and gas producer in africa.
The carelessness of the oil industry has also precipitated this situation, which can perhaps be best encapsulated by a 1983 report issued by the nnpc, long before popular unrest surfaced. Pdf purpose this chapter examines the socioeconomic and political challenges facing nigerias oilproducing sector. Insights from new company disclosures analyzing nigerias oil and gas sector ptg reports provide citizens with unprecedented levels of relevant and timely projectlevel payment data that can be used to inform public debate on the management of nigerias natural resources. Nigeria is a major oil and gas producer in the africa region, accounting for about 25% of oil as well as gas production in the region. Public regulation of the oil and gas industry in nigeria ggu law. Napims national petroleum investment management service. The nigerian oil and gas industry content development act the act is designed to enhance the level of participation of nigerians and nigerian companies in the countrys oil and gas industry.
Pdf environmental protection in the oil and gas industry. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a. Healthy commercial crude oil inventories in oecd countries, standing at 2. A littleknown fact, even amongst nigerians, is that oil production started in nigeria over 100 years ago, in september 1909 to be precise. Introduction it is very important to note that each time environmental issues are mentioned in nigeria, the oil and gas industry readily comes to mind. The role of oil and gas in nigerias economy and governance it would be difficult to exaggerate the role of oil in the nigerian economy. The oil and gas industry in nigeria weekend embarked on the third phase of its intervention in the fight against the covid19 pandemic, with the takeoff of an infectious diseases centre in bayelsa. Overview of the oil and gas sector nigeria is one of the worlds largest producers of crude oil.
Will president buhari rescue nigerias oil and gas sector. Environment, policies, strategies, nigeria, oil and gas industry 1. Top oil and gas companies in nigeria 20202021 latest update. Nigerian oil and gas industry content development act, 2010. Spence introduction the deepwater horizon oil spill in the gulf of mexico has underscored, once again, the magnitude of the risks assumed by those engaged in and affected by oil and gas development. Nigerias oil and gas revenues natural resource governance. List of oil and gas companies in nigeria and their websites. Local involvement in harnessing crude oil and natural gas. Nigeria and the global oil markets with the risk of instability in the niger delta still present, and the damaging effect this entails on the regions oil production, nigeria adds more supply.