The before chronicles (1908 – 1960) – The records of oil exploration in Nigeria dates benefit to 1908 subsequent to Nigerian Bitumen Corporation conducted exploratory function in the country; however, the unadulterated left the country at the onset of World War I. Thereafter, license was final to D’Arcy Exploration Company and Whitehall Petroleum. However, both companies did not locate oil of commercial value and returned their licenses. In 1923 adding together license covering 357,000 sq. miles was hermetically sealed to a supplementary unlimited called Shell D’arcy Petroleum Development Company of Nigeria. The accumulation true was a consortium of Shell and British Petroleum (furthermore known as Anglo-Iranian). The company began exploratory accomplish in 1937. The consortium was decided license to evaluate oil all anew the territory of Nigeria but in 1951 and subsequently together in the middle of 1955 and 1957, the acreage allotted to the company in the original license was shortened. Drilling deeds started in 1951 and the first test ably was drilled in Owerri area. Shell-BP in the motion of commercially easy to benefit to petroleum found oil in Oloibiri, Nigeria in 1956 and came harshly stream producing 5,100 bpd. Production of substandard oil began in 1957 and in 1960, a unqualified of 847,000 tonnes of unprofessional oil was exported.
Major Dates in Early History of Nigerian Oil and Gas Industry
1908: Nigerian Bitumen Co. & British Colonial Petroleum commenced operations on the order of Okitipupa.
1938: Shell D’ Arcy agreed Exploration license to prospect for oil throughout Nigeria.
1955: Mobil Oil Corporation started operations in Nigeria.
1956: First plentiful adroitly drilled at Oloibiri by Shell D’Arcy
1956: Changed pronounce to Shell-BP Petroleum Development Company of Nigeria Limited.
1958: First shipment of oil from Nigeria.
1960: Other non-British firms were arranged license to scrutinize for oil once Tenneco
The Mid History (1961 – 1990) – at this time, Nigeria was just incorporation its latest grounds as an oil exporter and developing its export push. It was during this period that flyer mistreatment of the country’s reserves began considering the Nigerian Government introducing its first regulations governing the taxation of oil industry profits in which the profits were to be shared 50-50 along together together amid the government and the oil companies. By the future pension of the 1960s, the Nigerian Government considered ways to utilize the resource stir thing exploited by the western countries to enhance the country and following this thought formulated its first unity for taking equity in one of the producing companies, the Nigerian Agip Oil Company, jointly owned by Agip of Italy and Phillips of the United States. The choice to concentrate on an equity stake-in effect the first step toward the motivate of the NNPC-was not, however, exercised until April 1971. In 1970, the decrease of the Biafran accomplishment coincided gone the rise in the world oil price, and Nigeria was clever to reap instant wealth from its oil production.
Major Dates in Mid History of Nigerian Oil and Gas Industry
1961: Shell’s Bonny Terminal was commissioned; 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 Obagi auditorium and Ubata gas pitch, Gulf’s first production
1965: Agip found its first oil at Ebocha, Phillips Oil Company started operations in subsequently Bendel State
1966: Elf started production in Rivers State subsequent to 12,000 b/d
1967: Phillips drilled its first ably (Dry) at Osari -I, Phillips first oil discovery at Gilli-Gilli -I
1968: Mobil Producing Nigeria Limited) was formed, Gulf’s Terminal at Escravos was commissioned
1970: Mobil started production from 4 wells at Idoho Field, Agip started production, Department of Petroleum Resources Inspectorate started.
1971: Shell’s Forcados Terminal Commissioned, Mobil’s terminal at Qua Iboe commissioned
1973: First Participation Agreement; Federal Government acquires 35% shares in the Oil Companies, Ashland started PSC back along with NNOC (NNPC), Pan Ocean Corporation drilled its first discovery without secrecy at Ogharefe -I
1974: Second Participation Agreement, Federal Government increases equity to 55%, Elf formally distorted its reveal 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 Resources
1976: MPE renamed Ministry of Petroleum Resources (MPR), Pan Ocean commenced production via Shell-BP’s pipeline at a rate of 10,800 b/d
1977: Government stated Nigerian National Petroleum Corporation (NNPC) by Decree 33, (NNOC & MPR extinguished).
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1979: Third Participation Agreement (throughout NNPC) increases equity to 60%, Fourth Participation Agreement; BP’s shareholding nationalized, leaving astern at the forward NNPC subsequent to 80% equity and Shell 20% in the joint Venture, Changed publicize to Shell Petroleum Development Company of Nigeria (SPDC)
1984: Agreement consolidating NNPC/Shel1 joint Venture.
1986: Signing of Memorandum of Understanding (MOU)
1988: Formation of 12 strategic shape units, covering each and every one 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: Signing of Memorandum of Understanding & joint Venture Operating Agreement (JOA)
1993: Production Sharing Contracts signed -SNEPCO, Sixth Participation Agreement; (NNPC=55%, Shell=30%, Elf= 10%, Agip=5%), the coming upon-stream of Elf’s Odudu combination, offshore OML 100.
1995: SNEPCO starts drilling first Exploration expertly, NLNG’s Final Investment Decision taken
1999: NLNG’s First shipment of Gas out of Bonny Terminal.
2000: NPDC/NAOC Service Contract signed
2001: Production of Okono offshore arena.
2002: New PSCs succession signed, Liberalization of the downstream oil sector, NNPC commences retail outlet want.
