The Facts About Nigeria's Oil and Gas Industry.




The following are the various facts about Nigeria's oil and gas sector.


1. Nigeria is the top oil producing nation in Africa and the 11th in the world and she has the second largest oil reserves in the continent.

2. She generates 95% of her foreign exchange earnings from the oil wealth and the sector contributes about 65% of government budgetary revenue.

3. Nigeria has a total number of 159 oilfields and 1481 oil wells according to the Department of Petroleum Resources, and the South-South region has 78 of the 159 oilfields.

4. Nigeria has a total number of 21 crude oil terminals and of which there are 6 export terminals

5. The crude oil export terminals include:
a. Forcados and Bonny Terminal owned by Shell in Port-Harcourt, which are capable of storing 13 million barrels.

b. Escravos Terminal, owned by Chevron, located in Delta State and has storage capacity of 3.6 million barrels.

c. Brass Terminal which is operated by Agip and located in Port-Harcourt with a storage capacity of 3,558,000 barrels.

d. Texaco (MRS) operates Pennington Terminal.

e. Mobil operates primarily out of the Qua Iboe Terminal in Akwa-Ibom.

6. Nigeria produces an high value, low sulphur content and light crude oil.

7. The Nigerian Liquifield Natural Gas Company (NLNGC) is the biggest natural gas company in Nigeria.

8. Nigeria has oil refineries owned and controlled by the government which are located at Warri, Kaduna and Port-Harcourt.

9. The popular private refinery is Dangote Refinery located at the Lekki Free Zone in Lagos and it is predicted to have a daily production of 650,000 barrels.

10. The Nigerian government charges the following percentages on petroleum profits:

a. 50%  of chargeable profits for companies under Production Sharing Contract with NNPC.

b. 65.75% of chargeable profits for Joint Venture and Sole Risk Companies within the first five years of operation.

c. 85% of chargeable profits for Joint Venture and Sole Risk Companies after the first five years of operation.

11. The upstream sector are majorly involved in oil drilling and production and the downstream sector supplies the finished oil products to the consumers.

12. The upstream oil companies include Shell, Chevron, Addax Petroleum, Star Deep Water, Total, Famfa Oil etc.

13. Nigeria's oil products are expensive simply because the nation's crude oil is mostly refined overseas.

14. The major oil producing states include Akwa-Ibom, Delta, Rivers and Bayelsa.

15. The industry is majorly controlled by the Ministry of Petroleum Resources and NNPC.

16. The current minister of the industry is Timpire Sylva and the Group Managing Director of NNPC is Mele Kyari.

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