When scientists think there may be oil in a certain place, a petroleum company brings in a drilling rig and raises an oil derrick that houses the tools and pipes they need to drill a well. The search for crude oil was spearheaded by the nigerian bitumen company, a private entity led by an american engineer, john simon bergheim. This makes her the 10 th largest producer of crude oil in the world and the 6 th largest. In nigeria, exploration, extraction, transportation and refining of oil have gone hand in. Full list of oil block and oil well owners in nigeria today. This leads one to wonder why the british showed the level of interest they exhibited, bearing in mind that the industrial sector was one aspect of the nigerian economy that they were most reluctant to develop. Conversely, delays or downtime in the value chain have.
Half of all spills occur due to pipeline and tanker accidents 50%, other causes include sabotage 28% and oil production operations 21%, with 1% of the spills being accounted for by inadequate or nonfunctional production equipment. As of the 1980s oil revenue provided 90% of nigeria foreign exchange earnings and 85% of the government revenue. Environmental impacts of oil exploration and exploitation in the niger delta of nigeria. Full list of oil block and oil well owners in nigeria. Nigerias oil and gas revenues natural resource governance. Delany delany environmental study executed at the request of milieudefensie friends of the earth netherlands, amsterdam, the netherlands. Pdf poverty, oil exploration and niger delta crisis. When news of the availability of oil reserves on borders of nations breaks out. Exploration is taking place across the entire albertine rift in uganda, with five out of nine oilprospecting blocks established by the government. The impact of oil exploration and environmental degradation on the economy and society of the niger delta region according to otoabasi, akpan, the search for petroleum oil in nigeria started during the first decade of the 20th century, specifically in 1903, eleven years before the amalgamation of nigeria. Oil exploitation and conflict in the nigerdelta region of nigeria 27 composed of thirty main streets very straight and 120 feet wide, apart from an infinity of small intersecting streets. Nigeria is one of the largest and oldest oil producers in africa, with over 50 years of. Oil exploration in nigeria has caused a great deal of damage to the water in the environment where the exploration is done.
The mineral industrys export makes an important part of the african gross income, but the process of mineral development however. These people are in no way inferior to the dutch as regards cleanliness. Pdf the study seeks to evaluate the environmental problems associated with oil exploration and. This chapter aims to present the main environmental impacts of the oil and gas industry throughout the stages of exploration and discovery of new deposits, hydrocarbon production and oil refining. Oil communities have been at the receiving end of this environmental problem. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd.
Historically, crude oil exploration and production in nigeria began when the nation was still under british colonialism. Exxonmobil upstream affiliates operating in nigeria are mobil producing nigeria unlimited mpn and esso exploration and production nigeria ltd. Oil spillage is a notorious defect that has killed the lives in the water and also affected the soil of the environment, thereby causing the inability to successfully plant in those areas. Addax petroleum is an international oilgas exploration and production company in nigeria. Nigeria s petroleum act of 1969 included a requirement that owners of oil drilling leases ensured that within 10 years at least 75 per cent of the workers employed as professionals. Oil exploration and production in africa since 2014 ifri. Arb20 5 purportedly aimed at addressing the tribunals direction regarding thirdparty funding. Nigerias petroleum act of 1969 included a requirement that owners of oil drilling leases ensured that within 10 years at least 75 per cent of the workers employed as professionals. Lekoil nigeria limited is an international oil and gas company in nigeria focused in the areas of exploration and production. Box 4223, uyo, akwa ibom state, nigeria keywords petroleum resources. The discovery was made by shellbp, at the time the sole concessionaire. The pollution has led to environmental degradation, which has adversely affected the lives of the inhabitants and ruined the local economy of the region. Oil and gas exploration and production laws in malta related international articles guidelines on assigning interests in upstream petroleum assets and pipelines nigeria. The fall in oil prices, which began in fall 2014, had a significant influence on the strategies of the key players in the oil industry in africa.
Oil exploration activities commenced in the deltaic region of nigeria in the early 1900s. Ethnic and political unrest has continued throughout the 1990s despite the conversion to democracy clarification needed and the election of the. Here, we have explained the various categories of oil and gas firms and listed the companies under each category. Governance and oil politics in nigerias niger delta. Oil exploration comes with necessary required actions that ultimately impact on the environment and influence the sociocultural lives of.
Owen pays most attention to north africa and angola, and addresses some of the more recent history of oil in gabon, the congo, senegal and nigeria. For many, the problem comes from the embezzlement of its oil rent, which provides the bulk of the states foreign currency revenue. The continents oil sector has experienced deepreaching changes, ranging from a drop in exploration budgets, the disappearance or sale of weakened. A littleknown fact, even amongst nigerians, is that oil production started in nigeria over 100 years ago, in september 1909 to be precise. May 03, 2015 oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Oil exploration and poverty in the niger delta region of. It was the first commercial oil discovery in nigeria. Aug 01, 2017 screenshot of members of an oil exploration team kidnapped by boko haram in northeastern nigeria, july 29, 2017. This study aims to extend the frontier of knowledge by estimating the impact of the oil price shocks on the nigerian economic growth using aggregate demand framework that theoretically connect analytical variables, rather than. Causes and solution 2 comments economics analysis by emmanuel joseph noko the negative effect of oil spillage on nigerian cannot be over emphasized, in terms poor crops harvest, aquatic destruction and impact on human health and wellbeing. As will be shown in this chapter, oil exploration by multinational corporations has brought with it a number of economic, social and environmental consequences, mostly negative.
Petroleum national energy education development project. The niger delta region of nigeria has been inundated with oil pollution since the beginning of oil exploitation in the 1960s. Nigerias eightyear conflict with boko haram has resulted in the deaths of over 20,000. I argue that there is an economic dimension of boko haram terrorism, which is based on two interrelated indicators. Pdf being rich with crude oil and other numerous natural resource, nigeria is potentially among the richest countries in the world. The paradox of the black gold 341 because of the con. Oil companies and lethal violence in nigeria nigeria watch. While objecting to the tribunals authority to request such information on the basis that. Similar tactics have been used by militants against oil workers in the niger delta. Oil companies hired locally as it reduced their costs, but a key constraint was the shortage of skilled nigerian nationals. This paper examines the environmental impact of oil spillage and degradation in the niger delta region of nigeria. Thus, the crude oil which comes from the niger delta region remains the. Oil spillage is one of the greatest environmental problems, nigeria is currently battling with especially in the niger delta region. Screenshot of members of an oil exploration team kidnapped by boko haram in northeastern nigeria, july 29, 2017.
Royal dutch shell pioneered nigeria s oil and gas industry and remains a major investor in the west african country. Jan 07, 2019 a structured guide to oil and gas exploration and production laws in nigeria. Oil and gas industry in nigeria is a quite complex industry and many outsiders struggle to understand the various types of companies and the business they do. Extractive activities including oil exploration can also have profound social and. Oil exploration in west africa inn investing news network. Nigeria has the largest natural gas reserve in africa, has the second largest oil reserve in africa and is the african continents primary oil producer. Nigeria is africas largest oil producer, and the 10th largest in the world. Our affiliates are involved in the exploration and production of crude oil and natural gas, and operate several joint venture concessions and deepwater production sharing contracts which. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Similar tactics have been used by militants against oil.
Oil and gas exploration and production waste management. Canada and botswana as well as the mistakes of angola, nigeria, equatorial. Saudi arabia, venezuela, iran, and the united arab emirates. This paper addresses the environmental impact of oil spillage and degradation in the niger delta region of nigeria. Top 10 countries with bitumen and extraheavy oil reserves. Public regulation of the oil and gas industry in nigeria ggu law. List of oil block and oil well owners in nigeria you have already known by now that nigeria is a petroleumproducing country and there are many oil blocks awarded to certain people who own a share of the oil blocks or oil wells by proving that they can meet certain conditions. Development of nigeria s oil industry the advent of the oil industry can be traced back to 1908, when a german entity, the nigerian bitumen corporation, commenced exploration activities in the araromi area, west of nigeria. The oil and gas industry in nigeria published by ggu law digital commons, 2016. Search for any onshore offshore company, product or service in nigeria. Oil exploration licences, oil prospecting licences and oil mining leases 3. Apart from these two authors, no standard monograph on the nigerian oil industry has attempted a detailed examination of the exploration for oil there before the 1950s.
The paradox of the black gold 343 neither are provisions made for externalities that will produce adverse impacts on the oilbearing communities. In this paper, we shall attempt to provide a concise history of the advent of the oil industry in nigeria in general and pay particular attention to the oil producing area of ogbaegbema. Oloibiri oilfield was discovered on sunday 15 january 1956 by shell darcy. The purpose of any mining exploration is to locate new source of minerals that can meet the needs of a nation. Nigeria is the largest oil and gas producer in africa. The most extensive treatment of oil exploration in some african colonies is in the seminal work of owen on the history of oil geology and geologists. An oil prospecting license is granted by the federal government to a company or joint venture to prospect for petroleum resources. Laws of the federation of nigeria petroleum act 1990. Ever since oil was discovered in the country in 1956.
This license is granted to the licensee to conduct extensive exploration activities, remove and dispose of commercially feasible petroleum discovered during prospecting operations. Nigeria is the largest exporter of oil in the subsaharan africa with a production figure of 2. Pdf oil exploration and exploitation in nigeria, the. Pdf origin and occurrence of crude oil in the niger delta. Public regulation of the oil and gas industry in nigeria. Heavy oil unknown reserves, exploration has found evidence of potential bitumen oil sands estimated 38 billion barrels of oil, unknown whenif production will commence fig.
In fact, as some have argued that the disco very of oil i n nigeria has br ought both b oom and doom to the nation, it. Importantly, oil provides about 75% of nigerian governments revenue and 90% of its foreign exchange earnings 2. Boko haram blocks oil exploration in northeast nigeria. Interocean oil development company and interocean oil exploration company v. Oil and gas exploration and production laws in nigeria lexology. Nigeria, which is the leading oil producer on the continent, is often cited as a textbook case of the damaging effects of corruption and of the resource curse in africa. Fight continues for nigeria oil spill victims, al jazeera, june 8, 2010. For more information, the following are good places to start. 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. Pdf oil exploration and exploitation in nigeria and the challenge. Oil exploration, environmental degradation, and future.
The awardwinning documentary, drilling and killing by amy goodman, jeremy scahill and dred scott keyes assassins in foreign lands. It also addresses the issue of environmental risks in the industry and possible accidents that may arise from its activities. The causes, consequences, solutions to the problem of oil spill incidents and remediation measures were articulated to ameliorate this problem and assist oil communities. But over the decades it has come under fire over spills in the delta region and.
The current conflict in the niger delta first arose in the early 1990s over tensions between foreign oil corporations and a number of the niger deltas minority ethnic groups who feel they are being exploited, particularly the ogoni and the ijaw. Even with new technology, oil exploration is expensive and often unsuccessful. Boko haram ambushed an oil exploration team from the nigerian national. Managing bribery and corruption risks in the oil and gas. Environmental impacts of oil exploration and exploitation. Other wastes generated, such as waste generated from pigging pipes. Nigeria has proven reserves of about 32 billion barrels of predominantly low sulphur light crude, which at current rate of exploitation could last another 38 years. Gabrich global is pleased to bring to you the history of the nigerian petroleum industry.
Laws of the federation of nigeria arrangement of sections 1. Oil and gas exploration and production laws in nigeria. Currently, nigeria is the largest oil producer in africa and the production of petroleum in the country plays a dominant role in the economy with over 90% of gross earnings coming from crude oil. The historical trajectory of crude oil exploration and. The houses are close to one another, arranged in good order. Petroleum production and export is the mainstay of the. Enhancing exploration portfolio with new opportunities 1. Republic of congo, he studies recent and future oilproducing countries including mauritania, senegal, uganda. Offences in connection with the distribution of petroleum products 6. Origin and occurrence of crude oil in the niger delta, nigeria article pdf available in journal of petroleum science and engineering 612.
Problems of mineral exploitation in nigeria and solutions. The impact of oil exploration, extraction and transport on mangrove vegetation and carbon stocks in nigeria biomass research report 1401 bibliographical data. Oil exploration and production in africa since 2014. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958. Oil exploitation and conflict in the nigerdelta region of. One of the key objectives of corporate social responsibility csr is to forge a restiveness and militancy in the niger delta region of nigeria it is not clear that the csr activities of multinational corporations mncs in the region have yielded the desired effect. The case for publishing petroleum contracts in nigeria. These pioneering efforts ended abruptly with the outbreak of the first world war in 1914. Overview of the oil and gas sector nigeria is one of the worlds largest producers of crude oil. Only about 60 percent of exploratory wells produce oil. Nigeria and angola are the largest oil producers in west africa.