The discovery of Oil and Gas in Nigeria.
On Sunday 15 January 1956, Shell Darcy discovered Oloibiri
Oilfield. It was the first commercial oil and Gas detection in Nigeria. The
discovery ended 50 years of unsuccessful oil and gas exploration in the country
by different international oil companies and launched Nigeria into the
limelight of the Petro-State.
Having discovered oil and gas in commercial quantities in
Oloibiri, Shell stepped up exploration in the Niger Delta. By 1958 Shell Darcy had discovered oil in
twelve areas in the Niger Delta of which Oloibiri, Bomu and Afam were the most promising.
Discovery well Oloibiri −1 was spudded on 3 August 1955 and
drilled vertical to a total depth of 12008 feet (3660m). This well was tested
and it flowed at the rate of about 5,000 barrels (790 m3) of oil per day; it
was deemed to be a commercial discovery. Some gas was also discovered with the
oil. The oil discovery was made in the Tertiary Agbada.
The location of Oloibiri Oilfield
The Oloibiri Oilfield is an onshore oilfield located in
Oloibiri in Ogbia LGA of Bayelsa State, Nigeria, about 45 miles (72 km) east of
Port Harcourt in the Niger Delta. Oloibiri field is about 13.75 square
kilometres (5.31 sq mi). It lies in a swamp within OML 29. Oloibiri Oilfield is
named after Oloibiri, a small, remote creek community, where it is located. In
Nigeria, oilfields are usually named after the host community where it is
located or a local landmark.
The field is currently operated by Shell Petroleum
Development Company of Nigeria Limited (SPDC).The field was originally operated
by Shell Darcy. On 30 April 1956, Shell Darcy changed its name to Shell-BP
Petroleum Development Company of Nigeria Limited to reflect BP's interest. In
1979, it changed its name again to Shell Petroleum Development Company of
Nigeria Limited (SPDC) following the nationalisation of BP's interest by the
government.
Appraisal of the field
Between 26 June 1956 and 28 October 1958, 11 appraisal wells
were drilled vertical to appraisal the extension of the reservoir to different
sections of the field. The first appraisal well was Oloibiri-2, it was spudded
on 26 June 1956 and drilled vertically to a total depth of 2932m and it
encountered oil in the Agbada Formation. Six of these appraisal wells were a
success and encountered oil pay.
An appraisal well Oloibiri-17 was spudded on 9 June 1967
after 9 years of production and drilled deviated to a measured depth of 12520
feet (3816 mD) but the result was not encouraging. Oloibiri-17 was plugged and
abandoned. The field production was on depletion from its peak production and
the well was drilled to appraisal another section of the field so as to
increase production.
Another appraisal well Oloibiri-18 was spudded on 21 April
1979 and drilled to a vertical depth of 9616 feet (2931 m) but the result was
also discouraging. The field was almost depleted at that time. The main
objective of the Oloibiri-18 was to appraise a new section and improve the
drainage of the reservoir but the well was dry with shows and so it was plugged
and abandoned.
Productivity and Development
Following the successful completion of the appraisal of the
field, four development wells were drilled in 1958 (between 17 June 1958 and 27
November 1958) for the development of the field. The four development wells and
the six successful appraisal wells were completed as oil production wells.
The discovery well, Oloibiri-1 was completed on 5 June 1956
as a commercial oil production well. Thus, Oloibiri-1 made history as the first
truly commercial oil well in Nigeria. This brings the number of completed
production wells on field to eleven.
The first Oil and Gas commercial Production in Nigeria.
The field started oil production between late 1957 and early
1958 and the first oil production from the field came at the rate of 4,928
barrels per day (783.5 m3/d). The field produced at an average rate of 5,100
barrels (810 m3) of oil per day for the first year. The production increased
thereafter as more wells were completed and put onto production and reached its
peak in 1964. The field was drained from eleven production wells. The oil
produced from the field is sour and heavy and has an API of 20.6. The gas
produced with the oil was flared off as a result of lack of gas processing and
utilisation facility in the country then, so the gas was not considered
necessary.
Royal Dutch Shell laid the first crude oil pipeline in the
country from the Oloibiri field to Port Harcourt on Bonny River to access
export facilities. Nigeria exported its first crude oil in February 1958 from
the Oloibiri oil field, initially at the rate of 5,100 barrels per day (810
m3/d). The oil was being pumped from the field via the country's first
pipeline, laid by Shell.
The Oloibiri oilfield produced over 20 million barrels
(3,200,000 m3) of oil during its 20 years life cycle. Oil production finally
stopped in 1978 and the field was abandoned the same year. The Oloibiri
oilfield was abandoned without any improved recovery to drain some of the 21.26
million barrels (3,380,000 m3) of hydrocarbon still left on the field.
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