OIL AND GAS INDUSTRY IN NIGERIA

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The oil and gas industry in Nigeria is the largest on the African continent. In 2014 Nigeria's petroleum industry contributes about 14% to its economy. Therefore, although the oil sector is important, since government revenues and foreign exchange are still highly dependent on this sector, it remains in fact a small part of the country's overall diversified economy. The delta basin crude oil is of two types: light, and comparatively heavy - the lightest around 36 gravity and the heaviest, 20-25 gravity. Both types are paraffinic and low in sulphur.

 EXPLORATION HISTORY
The history of oil exploration in Nigeria dates back to 1907 when the Nigerian Bitumen Corporation conducted exploratory work in the country; However, the company left the country at the beginning of the First World War. Subsequently, licenses were awarded to D'Arcy Exploration Company and Whitehall Petroleum. However, neither company found any commercially valuable oil and they surrendered their licenses in 1923. A new license covering 920,000 square kilometers (357,000 square miles) was awarded to a new company called Shell D'arcy Petroleum Development Company of Nigeria. The new company was a consortium of Shell and British Petroleum (then known as Anglo-Iranian). The company began exploratory work in 1937. The consortium was allowed to explore oil throughout Nigeria, but in 1951, and then between 1955 and 1957, the acreage allocated to the company in the original license was reduced . Drilling began in 1951 and the first test well was drilled in the Owerri area. The oil was discovered in non-commercial quantities at Akata, near Eket in 1953. Prior to the discovery of Akata, the company had spent about £ 6 million on exploratory activities in the country. Shell-BP in the pursuit of commercially available oil found oil in Oloibiri, Nigeria in 1956. Other significant oil wells discovered during the period were Afam and Bomu in Ogoni territory. Crude oil production began in 1957 and in 1960, a total of 847,000 tonnes of crude oil was exported. In the late 1950s, non-British companies obtained a petroleum exploration license: Mobil in 1955, Tenneco in 1960, Gulf Oil and later Chevron in 1961, Agip in 1962 and Elf in 1962. Prior to the discovery of oil. Nigeria (like many other African countries) relied heavily on agricultural exports to other countries to supply their economies. Many Nigerians thought that developers were looking for palm oil. But after nearly 50 years of oil exploration in the country, Shell-BP discovered oil in Oloibiri in the Niger Delta. The first oil field began production in 1958.

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