Issues and challenges crude oil exploration, exploitation. The niger delta region has a steady growing population of approximately 30 million people as of 2005, and accounts for more than 23% of nigeria s total population. The experience of the oil producing states uduma, d. 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. Oil exploitation and its socioeconomic effects on the niger.
Oil exploration in colonial nigeria university of helsinki. The pre1950s search for oil is a largely neglected period in nigerian oil history with no article nor book devoted exclusively to the topic. Later in 1946 shell democracy the predecessor of shell petroleum development company spdc of nigeriadiscovered oil in oloibiri. Oil exploration in nigeria has caused a great deal of damage to the water in the environment where the exploration is done. 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. History of oil and gas in nigeria royal dutch shell.
That was still four years before nigeria gained its independence. The discovery of crude oil in nigeria provided for its socioeconomic viability and has. In july 1979 the forcados tank 6 terminal in delta state incidence spilled 570,000 barrels of oil into the forcados estuary polluting the aquatic environment and surrounding swamp forest ukoli, 2005. Yet, records show that organised exploration activities in nigeria did not commence until 1903 and 1904, when the secretary of state for colonies conducted mineral surveys of the southern and northern protectorates respectively. The colonial authorities of the british crown asserted that all the minerals found are their property. In 1956, shell british petroleum discovered crude oil in the niger delta within nigeria and since then oil exploration and exploitation have been ongoing for several decades. Problems of mineral exploitation in nigeria and solutions. Daily, pipelines are vandalized, oil wells constructions are halted, oil workers are held hostage, lives are lost and property destroyed. Ahistoryofnigeria assets cambridge university press. The legislative framework regulating the nigerian oil industry, including the constitution of nigeria 1999, land. Review of some impacts of oil exploration and production in. Our point of discuss is the stake of host communities and the general public.
Nigeria joined the ranks of oil producers in 1958 when its first oil. Jul 01, 2012 the ascendancy of oil to the prime position in nigeria and the neglect of all other non oil sector gave nigeria a monocultural economy or a one legged economy. The impact of oil exploration, extraction and transport on mangrove vegetation and carbon stocks in nigeria biomass research report 1401 bibliographical data. The discovery was made by shellbp, at the time the sole concessionaire.
Nigerias oil producing communities 1630 connecticut ave, n. Oil exploration, security challenges, nigerdelta, environmental problems, and oil spillages. Eromosele 1997 observed that after almost half a century of oil exploration in nigeria, the oil. This report is an exploration of human rights violations related to oil exploration and. Environmental impacts of oil exploration and exploitation in the niger delta of nigeria. The history of oil exploration in nigeria could be traced to. Sep 21, 2017 the nigeria national petroleum cooperation nnpc said it has started the process that would lead to the exploration of oil and gas in the sokoto basin. However, both companies did not find oil of commercial. Oil exploration and spillage in the niger delta of nigeria colonel drake drilled a 70 feet well in titusville, pennsylvania and discovered oil. History of mining and quarrying in nigeria richbon group. Nigeria and angola already supply china with as much oil as saudi arabia. Department of history and international studies adekunle. Since oil operations began, 546 million gallons of oil have spilled into nigeria s niger delta. This paper examines some selected british mining and oil regulations in nigeria from1914 up to the era of decolonization.
Delany delany environmental study executed at the request of milieudefensie friends of the earth netherlands, amsterdam, the netherlands. Pdf being rich with crude oil and other numerous natural resource, nigeria is potentially among. Ahistoryofnigeria nigeria is africas most populous country and the worlds eighth largest oil producer, but its success has been undermined in recent decades by ethnic and religious con. 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. Overview nigeria, with an estimated population of 140 million, ranks among the top 10 nations in proved oil and natural gas reserves. Oil exploration and poverty in the niger delta region of.
The fortunes of the people have however, changed since the advent of oil in the region. The stakeholders involved in oil and gas development in nigeria can be categorized as. The dynamics of oil exploration and production in nigeria having seen in a nutshell the origin and contributions of the petroleum sector to the revenues of nigeria, it is reasonable to explain in some detail the forces that had propelled the direction of the industry generally, and the exploratory and production aspects in particular. 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.
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. Impacts and management of oil spill pollution along the nigerian coastal areas peter c. It was the first commercial oil discovery in nigeria. This paper examines the question as to whether crude oil resource is a blessing or curse to 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. Introduction akwa ibom state is one of the thirtysix states that makeup nigeria and one of the nine oil and gas producing states of the nigerdelta region in. Oil and gas exploration and production laws in nigeria. Jul, 2011 since oil operations began, 546 million gallons of oil have spilled into nigeria s niger delta. History of the nigerian petroleum industry oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Darke in 1859 to 1956 when crude oil was first discovered in commercial. Royal dutch shell pioneered nigeria s oil and gas industry and remains a major investor in the west african country. Implications for relevant qualitative data collection and analysis to improve rural economy.
The mineral industrys export makes an important part of the african gross income, but the process of mineral development however. Through these bodies, the nigerian government regulates exploration and production of natural gas and crude oil as a result of the authority provided through the nigerian constitution and the petroleum act pa, which vests the entire ownership and control of petroleum in the nigerian government on behalf of the people of nigeria. Crude oil was first discovered in commercial quantities in nigeria in 1956, while actual production started in 1958. The most controversial spills come from pipeline blasts. Oil exploration comes with necessary required actions that ultimately impact on the environment and influence the sociocultural lives of the people.
Oil exploration and spillage in the niger delta of nigeria. Hopkins called on africanists in 1976 to return to the study of imperial business, both as an extension of european and american business history and. During the 1950s prior to independence, oil was discovered off the coast of nigeria. Oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Jan 07, 2019 a structured guide to oil and gas exploration and production laws in nigeria. These pioneering efforts ended abruptly with the outbreak of the first world war in 1914. Petroleum exploration and production in the nigerias niger delta region and export of oil and gas resources by the petroleum sector has substantially improved the nations economy over the past five decades. Each country, and even regions within countries, has its own distinct path of discovery. In terms of ioc and investor incentive, the country boasts. Oloibiri oilfield was discovered on sunday 15 january 1956 by shell darcy. Toyin falola, a leading historian intimately acquainted. Oil revenues account for about 95% of nigeria s foreign exchange earnings.
Environmental impacts of oil exploration and exploitation. The discovery was made by shellbp, at the time the sole. At the same time, nigeria pays a high price for the oil. Historically, crude oil exploration and production in nigeria began when the nation was still under british colonialism. Nevertheless, 17 assessed oil exploration and spillage in the niger delta region of the country, using comparative analysis of secondary data covering periods from 1976 to 2000 on descriptive. A historical perspective of petroleum on nigerias economic crisis. As expected, the mining and oil exploration activities by multinational companies in colonial nigeria were guided by certain regulations. Over the past two decades, at least a dozen pipeline disasters have killed thousands in nigeria. Positive and negative contribution of petroleum to. Get the knowledge you need in order to pass your classes and more. Stakeholders engagement in the oil and gas industry in. Ever since oil was discovered in the country in 1956.
Impacts and management of oil spill pollution along the. Petroleum exploration history american association of. Nigeria joined the ranks of oil producers in 1958 when its first oil field came on stream producing 5,100 bpd. An overview of the nigerian oil and gas industry local. Shell started business in nigeria in 1937 as shell darcy and was granted an exploration license. Aug 01, 2017 screenshot of members of an oil exploration team kidnapped by boko haram in northeastern nigeria, july 29, 2017. Oil and gas resources in the federal republic of nigeria wumi iledare1 and rotimi suberu2 1.
Gabrich global is pleased to bring to you the history of the nigerian petroleum industry. Almost immediately, the revenues from oil began to make nigeria a wealthy nation. 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. The history of oil exploration in nigeria dates back to 1903 when nigerian bitumen. Crude oil exploration in nigeria dates back to 1908 with the discovery of deposits at araromi area in ondo state. Nigeria is the largest oil and gas producer in africa. 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 positive and negative contribution of petroleum to nigerian economy can be quite obvious. The nigeria petroleum refining company nprc exploration for crude oil commenced in nigeria in 1937 when shell darcy was granted the sole concessionary rights over the whole territory of the country nigerian national petroleum corporation nnpc.
Nigeria, and an important element of the economy was mining. The west african offshore oil and gas industry has a history of exploration of more than 50 years, with international majors and smaller firms having held, and relinquished, licences all along the. Framework paperi oil and gas resources in the federal. Shell d arcy granted exploration license to prospect for oil throughout nigeria. Pdf petroleum exploration and production in the nigerias niger delta region and export of oil and gas resources by the petroleum sector has. Most of the crude oil in nigeria comes from numerous, small, producing fields, located in the swamps of the niger delta, anambra state, benue state, trough, chad basin, and benin and product is exported through 7 terminals, and a number of floating production vessels.
Lekoil nigeria limited is an international oil and gas company in nigeria focused in the areas of exploration and production. Oil exploration and security challenges in the nigerdelta. Come browse our large digital warehouse of free sample essays. In 1956, shell nigeria discovered the first commercial oil field at oloibiri in the niger delta and started oil exports in 1958. The first oil spill in nigeria was at araromi in the present ondo state in 1908 tolulope, 2004. Pdf origin and occurrence of crude oil in the niger delta. Egypt is the largest nonopec oil producer in africa and the continents second largest gas producer after algeria. Linkages between crudeoil exploration and agricultural. Prior to the commercial production of oil in the late. Petroleum exploration and production in the nigeria s niger delta region and export of oil and gas resources by the petroleum sector has substantially improved the nations economy over the.
Despite being the 8th largest producer of crude oil, what we have in the country to show the world is unprecedented level of unemployment. In june 1956, shellbp discovered oil in the oloibiri community. Public regulation of the oil and gas industry in nigeria. From the point of discovering a prospect, oil exploration turns to oil prospecting. Linkages between crude oil exploration and agricultural development in nigeria. Department of agricultural economics and extension, joseph ayo babalola university, ikejiarakeji, nigeria email. The pace of oil discoveries picked up in the subsequent years. Nnpc begins exploration of oil in sokoto bellanaija.
From that day the history of crude oil in nigeria was made. A structured guide to oil and gas exploration and production laws in nigeria. Business business, international petroleum, energy and mining offshore oil fields discovery and exploration oil and gas exploration petroleum exploration petroleum in submerged lands. Oil exploration in the nigerias niger delta resumed in 1946 after world war ii and shell darcy drilled a number of oil exploration wells in 1951. May 03, 2015 oil was discovered in nigeria in 1956 at oloibiri in the niger delta after half a century of exploration. Thereafter, license was given to darcy exploration company and whitehall petroleum. Only two authors, carland and njeze, have addressed oil exploration in colonial nigeria in any depth, with carland limiting his focus to the relationship between the nigeria bitumen corporation and the colonial office between 1906 and 1914. Boko haram blocks oil exploration in northeast nigeria. A case for reform in nigeria executive summary nigeria s national oil company, the nigerian national petroleum corporation nnpc, sells around one million barrels of oil a day, or almost half of the countrys total production. Origin and occurrence of crude oil in the niger delta, nigeria article pdf available in journal of petroleum science and engineering 612. Thats the equivalent of an exxon valdez disaster happening every year for nearly 50 years.
But over the decades it has come under fire over spills in the delta region and. The second part of the article will focus on the public regulation of the oil and gas industry in nigeria. An assessment of the distribution of petroleum products in. At the initials stage, shell darcy later shell british petroleum enjoyed a complete monopoly of oil exploration for a considerable long time 1938 1955. Eventually, however, bp left nigeria and shell teamed up with other companies see profiles in part 2. The niger delta is home to an extraordinary variety of people. Resource curse, nigeria, oil and gas, gdp, infrastructure, corruption. Review of some impacts of oil exploration and production.
United states of america where the first all well was drilled by edwin l. May 18, 2016 the oil exploration and exploitation industry which is majorly centred in the niger delta region is without doubt currently the most important earner of foreign exchange to the nigerian economy. From the time humans realized naturally occurring petroleum had myriad uses, they organized means and methods to try and collect it and utilize it to its fullest potential. The paper traces the origin of oil exploration and exploitation from titusville in pennsylvania. Crude oil was first discovered in commercial quantity in oloibiri in presentday bayelsa state in 1956. Being one of the regions oldest upstream sectors its first exploration in 1860 and commercial production in 1909 egypts a mature oil and gas producer. Evaluation of some oil companies in the development of. 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. May 07, 2016 by michael eboh nigerias quest for increased crude oil production and reserves is on the verge of being achieved with the commencement of oil exploration in offshore lagos, at the aje field. Where prospecting ventured offshore, it was in areas not greater than 200m water depth. The historical trajectory of crude oil exploration and.
Deep water exploration from the very beginning of oil exploration in nigeria in 1937, till early 1993, virtually all exploration and production activities were restricted to land and swamps. The early history 1908 1960 the history of oil exploration in nigeria dates back to 1908 when nigerian bitumen corporation conducted exploratory work in the country. Abstract it is a fact that there is terrorism in the oil producing states of nigeria. The history of petroleum exploration around the world is colorful and fascinating. Major events in the history of the nigerian oil and gas. Prior to the discovery of oil, nigeria like many other african countries strongly relied on agricultural exports to other countries to support its economy. It has had disastrous impacts on the environment in the region and has adversely. Plc spudded the umu4 well at umusadege marginal oil field in the central niger delta in nigeria. Similar tactics have been used by militants against oil workers in the niger delta. Badejo abstract nigeria has a coastline of approximately 853km facing the atlantic ocean.
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