Nigerian Oil and Gas Industry

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Questions and Answers

What percentage of the entire GDP of Nigeria does the oil sector contribute to?

Which basin in Nigeria does the crude oil come from, and what are the two types of crude oil from this basin?

Niger Delta basin, light and heavy

What is the API gravity of the lighter type of crude oil from the Niger Delta basin?

$36$

What is the API gravity range of the comparatively heavier type of crude oil from the Niger Delta basin?

$20-25$ Signup and view all the answers

What is the sulphur content like in both types of crude oil from the Niger Delta basin?

Low Signup and view all the answers

When did Nigeria start exporting over one million barrels per day to the United States?

$2010$ Signup and view all the answers

What percentage of U.S. total crude oil and petroleum products imports did Nigeria's export represent in 2010?

9% Signup and view all the answers

When was the Petroleum Industry Bill birthed?

July 18, 2008 Signup and view all the answers

When did the history of oil exploration in Nigeria begin?

1903 Signup and view all the answers

Why were operations of Nigerian Bitumen Corporation stopped during World War I?

Lack of technological and financial resources Signup and view all the answers

What percentage of Nigeria's government revenue did oil and gas exports account for by 2000?

83% Signup and view all the answers

What is the estimated range of Nigeria's proven oil reserves in billion barrels?

$16 - 22$ billion barrels Signup and view all the answers

Where are almost all of Nigeria's oil reserves located?

Around the delta of the Niger River Signup and view all the answers

What is the name of the most productive region for oil production in Nigeria?

Coastal Niger Delta Basin Signup and view all the answers

What classification does Nigeria's oil mostly fall under?

"Light" and "sweet" Signup and view all the answers

'Bonny light' is a term used to refer to which type of oil?

'Bonny light' refers to sweet crude oil Signup and view all the answers

'Qua Ibo,' 'Escravos blend,' and 'Brass River' are examples of:

Nigerian crude oils named after export terminals Signup and view all the answers

What led to a significant increase in government revenue and earnings in Nigeria?

Discovery of oil reserves Signup and view all the answers

What has disrupted production intermittently in Nigeria?

Protests from Niger Delta inhabitants Signup and view all the answers

What steps has the Nigerian government taken regarding the oil and gas industry?

Privatization to allow for greater equity and economic gain for the people Signup and view all the answers

Which country was the largest consumer of Nigerian oil as of 2014?

India Signup and view all the answers

How many petroleum exportation terminals are there in Nigeria?

6 Signup and view all the answers

Which company owns the Escravos Terminal in Nigeria?

Chevron Signup and view all the answers

What is the storage capacity of the Brass Terminal in Nigeria?

$3,558,000$ barrels ($565,700 m^3$) Signup and view all the answers

What is the primary operation location for Mobil in Nigeria?

$Qua Iboe$ Terminal Signup and view all the answers

What is the depth threshold for deepwater production in offshore drilling?

$400$ metres ($1,300 ft$) Signup and view all the answers

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Study Notes

Nigeria's oil and gas exports accounted for over 98% of export earnings, 83% of federal government revenue, and 14% of its GDP by 2000. They provided 95% of foreign exchange earnings and about 65% of government budgetary revenues.
Nigeria's proven oil reserves were estimated to be between 16 and 22 billion barrels (2.5×109 and 3.5×109 m3) by the US Energy Information Administration, making it the tenth most petroleum-rich nation and the most affluent in Africa.
Crude oil production averaged around 2,200,000 barrels (350,000 m3) per day in mid-2001 and was expected to remain profitable at an average benchmark oil price of $85-$90 per barrel.
Almost all of Nigeria's oil reserves are located around the delta of the Niger River, with offshore rigs also prominent in the coastal region.
Nigeria has a total of 159 oil fields and 1481 wells in operation, with the most productive region being the coastal Niger Delta Basin. This region encompasses 78 of the 159 oil fields and produces most of Nigeria's oil.
The vast number of small, scattered oil fields led to the development of an extensive pipeline network to transport the crude oil.
Money from jointly operated companies was continually directed towards petroleum exploration and production due to the lack of highly productive oil fields.
Nigeria's oil is classified mostly as "light" and "sweet," as it is largely free of sulfur, making it the largest producer of sweet oil in OPEC.
The oil is known as "Bonny light," and there are several other Nigerian crudes named after their export terminals, such as "Qua Ibo," "Escravos blend," "Brass River," "Forcados," and "Pennington Anfan."
Production has been disrupted intermittently due to protests from the Niger Delta's inhabitants, who feel they are being exploited.
Nigeria's proven oil reserves were first discovered in 1956 by Shell-BP in Oloibiri, Nigeria, in the Niger Delta.
The discovery of oil led to a significant increase in government revenue and earnings, but the profits were primarily kept by the government and foreign oil companies, leaving little economic benefit for the people.
The Nigerian government has taken steps to privatize the oil and gas industry to allow for greater equity and economic gain for the people.