The early history (1908 – 1960) – The history of oil exploration in Nigeria dates again to 1908 when Nigerian Bitumen Company conducted exploratory work within the country; nonetheless, the agency left the country on the onset of World War I. Thereafter, license was given to D’Arcy Exploration Company and Whitehall Petroleum. Nonetheless, both firms did not find oil of business worth and returned their licenses. In 1923 new license masking 357,000 sq. miles was given to a new firm referred to as Shell D’arcy Petroleum Development Firm of Nigeria. The brand new firm was a consortium of Shell and British Petroleum (then known as Anglo-Iranian). The company began exploratory work in 1937. The consortium was granted license to discover oil everywhere in the territory of Nigeria however in 1951 and then between 1955 and 1957, the acreage allotted to the corporate in the unique license was decreased. Drilling activities began in 1951 and the primary check nicely was drilled in Owerri area. Shell-BP within the pursuit of commercially obtainable petroleum found oil in Oloibiri, Nigeria in 1956 and got here on stream producing 5,one hundred bpd. Manufacturing of crude oil started in 1957 and in 1960, a total of 847,000 tonnes of crude oil was exported.

Major Dates in Early Historical past of Nigerian Oil and Fuel Business

• 1908: Nigerian Bitumen Co. & British Colonial Petroleum commenced operations around Okitipupa.
• 1938: Shell D’ Arcy granted Exploration license to prospect for oil all through Nigeria.
• 1955: Mobil Oil Company started operations in Nigeria.
• 1956: First profitable well 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.
• 1960: Other non-British firms were granted license to discover for oil like Tenneco

The Mid History (1961 – 1990) – at this interval, Nigeria was just understanding its latest grounds as an oil exporter and developing its export market. It was throughout this time that business exploitation of the country’s reserves started with the Nigerian Government introducing its first laws governing the taxation of oil trade earnings in which the income have been to be shared 50-50 between the federal government and the oil corporations. By the later part of the 1960s, the Nigerian Government considered methods to make the most of the useful resource being exploited by the western international locations to develop the nation and with this thought formulated its first agreement for taking fairness in one of the producing corporations, the Nigerian Agip Oil Firm, jointly owned by Agip of Italy and Phillips of the United States. The option to take up an equity stake-in effect the first step towards the creation of the NNPC-was not, nonetheless, exercised until April 1971. In 1970, the tip of the Biafran war coincided with the rise on the earth oil value, and Nigeria was in a position to reap instant riches from its oil manufacturing.

Major Dates in Mid History of Nigerian Oil and Gas Industry

• 1961: Shell’s Bonny Terminal was commissioned; Texaco Overseas began operations in Nigeria.
• 1962: Elf started operations in Nigeria. (As Safrap), Nigeria Agip Oil Company began operations in Nigeria
• 1963: Elf discovered Obagi area and Ubata gas area, Gulf’s first manufacturing
• 1965: Agip found its first oil at Ebocha, Phillips Oil Company began operations in then Bendel State
• 1966: Elf began production in Rivers State with 12,000 b/d
• 1967: Phillips drilled its first properly (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 began manufacturing from four wells at Idoho Area, Agip started manufacturing, Division of Petroleum Resources Inspectorate began.
• 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 Companies, Ashland began PSC with then NNOC (NNPC), Pan Ocean Corporation drilled its first discovery effectively at Ogharefe -I

1974: Second Participation Settlement, Federal Authorities increases fairness to 55%, Elf formally modified its name 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 Assets (MPR), Pan Ocean commenced manufacturing via Shell-BP’s pipeline at a rate of 10,800 b/d

1977: Government established Nigerian Nationwide Petroleum Corporation (NNPC) by Decree 33, (NNOC & MPR extinguished).

1979: Third Participation Settlement (all through NNPC) will increase equity to 60%, Fourth Participation Agreement; BP’s shareholding nationalized, leaving NNPC with 80% equity and Shell 20% in the joint Enterprise, Changed name to Shell Petroleum Growth Firm of Nigeria (SPDC)

• 1984: Agreement consolidating NNPC/Shel1 joint Venture.
• 1986: Signing of Memorandum of Understanding (MOU)

1988: Formation of 12 strategic business models, protecting your complete spectrum of oil industry operations: Nigerian Petroleum Development Firm (NPDC), Nigerian Fuel Company (NGC), Merchandise and Pipelines Marketing Company (PPMC), Built-in Data Services Restricted (IDSL), Nationwide Engineering and Technical Firm Limited (NETCO),Hydrocarbon Providers Nigeria Restricted (HYSON), Warri Refinery and Petrochemical Co. Limited (WRPC), Kaduna Refinery and Petrochemical Co. Limited (KRPC), Port Harcourt Refining Co.