In 1970, the top of the Biafran conflict coincided with the rise on the earth oil value, and Nigeria was able to reap instantaneous riches from its oil production. Nigeria joined the Organisation of Petroleum Exporting Nations (OPEC) in 1971 and established the Nigerian Nationwide Petroleum Company (NNPC) in 1977, a state owned and managed firm which is a significant player in both the upstream and downstream sectors.

Following the discovery of crude oil by Shell Drcy Petroleum, pioneer production began in 1958 from the company oil subject in Oloibiri in the Japanese Niger Delta. By the late sixties and early seventies, Nigeria had attained a manufacturing degree of over 2 million barrels of crude oil a day. Although manufacturing figures dropped in the eighties as a result of financial slump, 2004 noticed a total rejuvenation of oil manufacturing to a record stage of two.5 million barrels per day. Present improvement methods are geared toward rising production to 4million barrels per day by the yr 2010.

Petroleum manufacturing and export play a dominant position in Nigeria’s economy and account for about ninety% of her gross earnings. This dominant role has pushed agriculture, the normal mainstay of the economy, from the early fifties and sixties, to the background.

Main Events within the historical past of the Nigerian Oil and Gas
1908
Nigerian Bitumen Co. & British Colonial Petroleum commenced operations around Okitipupa.

• 1938
  Shell D’ Arcy granted Exploration license to prospect for oil throughout Nigeria.
• 1955
  Mobil Oil Corporation started operations in Nigeria.
• 1956
  First successful effectively drilled at Oloibiri by Shell D’Arcy
• 1956
  Changed title to Shell-BP Petroleum Improvement Firm of Nigeria Restricted.
• 1958
  First shipment of oil from Nigeria.
• 1961
  Shell’s Bonny Terminal was commissioned.
  Texaco Overseas started operations in Nigeria.
• 1962
  Elf began operations in Nigeria. (As Safrap)
  Nigeria Agip Oil Company started operations in Nigeria
• 1963
  Elf found Obagi discipline and Ubata gas discipline
  Gulf’s first manufacturing
• 1965
  Agip discovered its first oil at Ebocha
  Phillips Oil Company started operations in Bendel State
• 1966
  Elf began production in Rivers State with 12,000 b/d
• 1967
  Phillips drilled its first properly (Dry) at Osari
  Phillips first oil discovery at Gilli-Gilli -I
• 1968
  Mobil Producing Nigeria Limited) was formed.
  Gulf’s Terminal at Escravos was commissioned
• 1970
  Mobil began manufacturing from four wells at Idoho Discipline
  Agip began production
  Department of Petroleum Resources Inspectorate started.
• 1971
  Shell’s Forcados Terminal Commissioned
  Mobil’s terminal at Qua Iboe commissioned

1973
First Participation Settlement; Federal Government acquires 35% shares in the Oil Firms
Ashland started PSC with then NNOC (NNPC)
Pan Ocean Corporation drilled its first discovery effectively at Ogharefe

1974
Second Participation Agreement, Federal Authorities increases fairness to fifty five%.
Elf formally changed its title from “Safrap”
Ashland’s first oil discovery at Ossu

1975
First Oil lifting from Brass Terminal by Agip
DPR upgraded to Ministry of Petroleum Resources

1976
MPE renamed Ministry of Petroleum Assets (MPR)
Pan Ocean commenced manufacturing via Shell-BP’s pipeline at a rate of 10,800 b/d

1977
Government established Nigerian National Petroleum Company (NNPC) by Decree 33, (NNOC & MPR extinguished).

1979
Third Participation Agreement (all through NNPC) will increase fairness to 60%
Fourth Participation Settlement; BP’s shareholding nationalised, leaving NNPC with 80% fairness and Shell 20% in the joint Venture.
Changed title to Shell Petroleum Development Firm of Nigeria (SPDC)

• 1984
  Settlement consolidating NNPC/Shel1 joint Enterprise.
• 1986
  Signing of Memorandum of Understanding (MOU)
• 1989
  Fifth Participation Agreement; (NNPC=60%, Shell = 30%, Elf=5%, Agip=5%).
• 1991
  Signing of Memorandum of Understanding & joint Enterprise Operating Agreement (JOA)

1993
Production Sharing Contracts signed -SNEPCO
Sixth Participation Agreement; (NNPC=fifty five%, Shell=30%, Elf= 10%, Agip=5%).
The coming on-stream of Elf’s Odudu mix, offshore OML one hundred.

• 1995
  SNEPCO begins drilling first Exploration properly.
  NLNG’s Last Investment Resolution taken
• 1999
  NLNG’s First shipment of Gas out of Bonny Terminal.
• 2000
  NPDC/NAOC Service Contract signed
• 2001
  Manufacturing of Okono offshore field.
• 2002
  New PSCs settlement signed.
  Liberalisation of the downstream oil sector.