The early history (1908 – 1960) – The historical backdrop of oil exploration in Nigeria goes back to 1908 when Nigerian Bitumen Corporation led exploratory work in the nation; be that as it may, the firm left the nation at the beginning of World War I. From there on, permit was given to D’Arcy Exploration Company and Whitehall Petroleum. Be that as it may, the two organizations didn’t discover oil of business esteem and restored their licenses. In 1923 new permit covering 357,000 sq. miles was given to another firm called Shell D’arcy Petroleum Development Company of Nigeria. The new firm was a consortium of Shell and British Petroleum (at that point known as Anglo-Iranian). The organization started exploratory work in 1937. The consortium was allowed permit to investigate oil everywhere throughout the domain of Nigeria yet in 1951 and afterward somewhere in the range of 1955 and 1957, the real esatate distributed to the organization in the first permit was decreased. Boring exercises began in 1951 and the main test all around was penetrated in Owerri zone. Shell-BP in the quest for monetarily accessible oil discovered oil in Oloibiri, Nigeria in 1956 and went ahead stream delivering 5,100 bpd. Creation of unrefined petroleum started in 1957 and in 1960, a sum of 847,000 tons of raw petroleum was sent out.

Significant Dates in Early History of Nigerian Oil and Gas Industry

1908: Nigerian Bitumen Co. and British Colonial Petroleum initiated tasks around Okitipupa.

1938: Shell D’ Arcy conceded Exploration permit to prospect for oil all through Nigeria.

1955: Mobil Oil Corporation began tasks in Nigeria.

1956: First effective very much penetrated at Oloibiri by Shell D’Arcy

1956: Changed name to Shell-BP Petroleum Development Company of Nigeria Limited.

1958: First shipment of oil from Nigeria.

1960: Other non-British firms were conceded permit to investigate for oil like Tenneco

The Mid History (1961 – 1990) – at this period, Nigeria was simply understanding its most recent grounds as an oil exporter and building up its fare showcase. It was during this time business abuse of the nation’s stores started with the Nigerian Government presenting its first guidelines overseeing the tax collection from oil industry benefits in which the benefits were to be shared 50-50 between the administration and the oil organizations. By the later piece of the 1960s, the Nigerian Government considered approaches to use the asset being abused by the western nations to build up the nation and with this idea defined its first understanding for taking value in one of the delivering organizations, the Nigerian Agip Oil Company, together claimed by Agip of Italy and Phillips of the United States. The alternative to take up a value stake in actuality the initial move toward the making of the NNPC-was not, in any case, practiced until April 1971. In 1970, the finish of the Biafran war concurred with the ascent on the planet oil cost, and Nigeria had the option to harvest moment wealth from its oil creation.

Significant Dates in Mid History of Nigerian Oil and Gas Industry

1961: Shell’s Bonny Terminal was charged; Texaco Overseas began tasks in Nigeria.

1962: Elf began tasks in Nigeria. (As Safrap), Nigeria Agip Oil Company began tasks in Nigeria

1963: Elf found Obagi field and Ubata gas field, Gulf’s first creation

1965: Agip discovered its first oil at Ebocha, Phillips Oil Company began tasks in then Bendel State

1966: Elf began creation in Rivers State with 12,000 b/d

1967: Phillips penetrated its first well (Dry) at Osari – I, Phillips first oil revelation at Gilli-Gilli – I

1968: Mobil Producing Nigeria Limited) was shaped, Gulf’s Terminal at Escravos was charged

1970: Mobil began creation from 4 wells at Idoho Field, Agip began creation, Department of Petroleum Resources Inspectorate began.

1971: Shell’s Forcados Terminal Commissioned, Mobil’s terminal at Qua Iboe appointed

1973: First Participation Agreement; Federal Government procures 35% offers in the Oil Companies, Ashland began PSC with then NNOC (NNPC), Pan Ocean Corporation penetrated its first revelation well at Ogharefe – I

1974: Second Participation Agreement, Federal Government expands value to 55%, Elf officially changed its name from “Safrap”, Ashland’s first oil disclosure at Ossu – I

1975: First Oil lifting from Brass Terminal by Agip, DPR moved up to Ministry of Petroleum Resources

1976: MPE renamed Ministry of Petroleum Resources (MPR), Pan Ocean initiated creation through Shell-BP’s pipeline at a pace of 10,800 b/d

1977: Government set up Nigerian National Petroleum Corporation (NNPC) by Decree 33, (NNOC and MPR quenched).

1979: Third Participation Agreement (all through NNPC) expands value to 60%, Fourth Participation Agreement; BP’s shareholding nationalized, leaving NNPC with 80% value and Shell 20% in the joint Venture, Changed name to Shell Petroleum Development Company of Nigeria (SPDC)

1984: Agreement merging NNPC/Shel1 joint Venture.

1986: Signing of Memorandum of Understanding (MOU)

1988: Formation of 12 vital specialty units, covering the whole range of oil industry tasks: Nigerian Petroleum Development Company (NPDC), Nigerian Gas Company (NGC), Products and Pipelines Marketing Company (PPMC), Integrated Data Services Limited (IDSL), National Engineering and Technical Company Limited (NETCO),Hydrocarbon Services Nigeria Limited (HYSON), Warri Refinery and Petrochemical Co. Constrained (WRPC), Kaduna Refinery and Petrochemical Co. Constrained (KRPC), Port Harcourt Refining Co. Restricted (PHRC), NNPC Retail, Duke Oil

1989: Fifth Participation Agreement; (NNPC=60%, Shell = 30%, Elf=5%, Agip=5%).

Ongoing History (1991 – date) –

1991: Signing of Memorandum of Understanding and joint Venture Operating Agreement (JOA)

1993: Production Sharing Contracts marked – SNEPCO, Sixth Participation Agreement; (NNPC=55%, Shell=30%, Elf= 10%, Agip=5%), the going ahead stream of Elf’s Odudu mix, seaward OML 100.

1995: SNEPCO begins penetrating first Exploration well, NLNG’s Final Investment Decision taken

1999: NLNG’s First shipment of Gas out of Bonny Terminal.

2000: NPDC/NAOC Service Contract marked

2001: Production of Okono seaward field.

2002: New PSCs understanding marked, Liberalization of the downstream oil part, NNPC initiates retail outlet plot.