Nigeria's oil industry


 * "If U.S. troops go to Africa," G. Pascal Zachary, wrote March 14, 2006, in AlterNet, "it won't be for a humanitarian intervention; it will be to protect American oil interests in the troubled Niger Delta."

Nigeria's oil industry is nearly synonymous with violence, as kidnappings and conflict continuously disrupt operations.

"Oilmen looking for an alternative to the politically troubled oil fields of the Middle East think they see one beneath the waters off West Africa. The bad news is that the arc of nations stretching along the shore of the Gulf of Guinea from the Ivory Coast to Angola looks as politically testing as Arabian ones," Paul Maidment wrote March 10, 2003, in Forbes.

"With estimated reserves of 24 billion barrels, the Gulf of Guinea is likely to become the world's leading deepwater offshore production center. Its fields contain good-quality low-sulfur crude. They are directly across the Atlantic from refineries on America's East Coast (Africa lacks much refining capacity of its own outside Nigeria and South Africa). It is open sea--no maritime choke points to navigate," Maidment wrote.

"Being offshore isolates the fields from the vagaries of Africa's civil and border wars, coups, rebellions and revolutions. Islam is well entrenched, but it is not the dominant faith of the coastal nations. Nor is there evidence that Al-Qaeda has got a foothold in the region, as it has on the eastern side of the continent--though it may have had contacts with local fundamentalist groups in Islamic northern Nigeria," Maidment wrote.

Overview
Nigeria's oil was discovered in 1956, which "transformed Nigeria’s economy." For the next two decades, oil "provided approximately 90 percent of foreign exchange earnings, and 80 percent of federal revenue. Nigeria also has huge reserves of natural gas, yet to be fully exploited." 

As of September 2004, Nigeria was "the largest oil producer in the Sub-Saharan Africa, the fifth largest petroleum exporting country in the organization of petroleum exporting countries (OPEC), and the fifth largest oil exporting country to the United States, amounting to about 8% of US crude oil imports. Nigeria produces 30% of the total oil production in the African region. Oil revenues have historically provided about 95% of Nigeria’s foreign exchange earnings and about 85% of federal revenue.

"The source of Nigeria’s wealth is the Niger Delta, a wetland of about 70,000 sq. km. spread over a number of ecological zones along the Gulf of Guinea. The Niger Delta is made up of nine oil producing States and has an estimated population of about 20 million people, amounting to about 16.7% of the Nigerian population (120 million)." 

Source of Civil Unrest
"The oil industry is central to the ongoing civil unrest in the country. The equitable sharing of the country’s multi-billion anual oil revenues amongst its population is at stake. The Nigerian population are particularly poor and do not understand why they are so deprived of the benefits of a natural resource, which they often see as a gift of God. Oil companies are faced with increasing protests directed at oil activities and the lack of development in the delta. These have included incidents of hostage-taking, closures of flow-stations, sabotage, and intimidation of staff." 

Oil Companies in Nigeria
"In 1971, Nigeria joined the OPEC and, in line with OPEC resolutions, the Nigerian National Oil Corporation (NNOC) was established, later becoming Nigerian National Petroleum Corporation (NNPC), in 1977." 

The NNPC dominates Nigeria's oil industry and is "the major partner in the upstream joint ventures with the 'seven sisters' or major multinational petroleum exploration and production companies. These are the largest and oldest in Nigeria – Shell Petroleum Development company – SPDC or better known as 'Shell' others are: Mobil Producing Nigeria unlimited, Chevron Nigeria, Elf Petroleum Nigeria and the Nigerian Agip Oil company, NAOC & Affiliate, Agip Energy and Natural Resources, AENR." 

Nigerian Oil Companies

 * Nigerian Oil & Gas Online.
 * Also see list at MBendi.com.

International Oil Companies
"There are eighteen international oil companies operating in the country. Some of them are new entrants who have an interest in the deep offshore blocks in partnership with other operators. The oil majors account for about 99% of crude oil production in Nigeria. The international oil companies operating in Nigeria and when they established are:" --Nigerian Investment Promotion Commission.


 * Shell Petroleum Development Company Limited (since 1937)
 * Mobil Producing Nigeria Unlimited (since 1955)
 * Chevron Nigeria Limited (since 1961)
 * Texaco Overseas Nigeria Petroleum Company Unlimited (since 1961)
 * Elf Petroleum Nigeria Limited (since 1962)
 * Philip (since 1964); Pan Ocean Oil Corporation (since 1972); Bought over Ashland Oil Nigeria Limited (1973)
 * Agip Energy & Natural Resources (since 1979)
 * Statoil/BP Alliance (since 1992)
 * Esso Exploration & Production Nigeria Limited (since 1992)
 * Texaco Outer Shelf Nigeria Limited (since 1992)
 * Shell Nigeria Exploration & Production Company (since 1992)
 * Total (Nigeria) Exploration & Production Company Ltd. (since 1992)
 * Amoco Corporation (since 1992)
 * Chevron Exploration & Production Company (since 1992)
 * Conoco (since 1992)
 * Abacan (since 1992)

Publications

 * "Nigeria: The Political Economy of Oil" by Sarah Ahmad Khan, Research Fellow, Oxford Institute for Energy Studies, Oxford University Press, September 1994 (hardcover), ISBN 0197300146.

Related SourceWatch Resources

 * African Oil Policy Initiative Group
 * Angola's oil industry
 * Chad/Cameroon Development Project
 * Pax Americana, Africa

General Information

 * Country Analysis Brief: Nigeria, U.S. Department of Energy, July 2003.

Profiles

 * "Petroleum in Nigeria," Wikipedia.

1996

 * Case Study: "Iko (Nigeria) Oil Spill," Trade & Environment Data Base, The Mandala Projects, American University, The School of International Service, May 30, 1996.

1997

 * Case Study: "Ogoni and Oil. Nigeria Petroleum Pollution in Ogoni Region," Trade & Environment Data Base, The Mandala Projects, American University, The School of International Service, January 11, 1997.

1998

 * Hilary Andersson, "Fighting the oil firms," BBC, November 6, 1998.

1999

 * "Oil prices threaten Nigerian economy," BBC, January 1, 1999.
 * Monica Wilson, "More Military Crackdowns for Oil in Nigeria," Washington Peace Center, February 1999.
 * "Delta oil companies under spotlight," BBC, February 23, 1999.
 * "Nigerian chief killed over oil attack," BBC, March 12, 1999.
 * Barnaby Phillips, "New clashes in Nigeria's oil region," BBC, May 7, 1999.
 * Donny Ohia, "Multinational Companies and Human Rights in Nigeria," Hungerstrike (Human Rights.de), June 1999.
 * Tunde Obadina, "Harnessing abundant gas reserves. Nigeria alone could provide the power needs of all West Africa," Africa Recovery, June 1999 (part of article "Nigeria: Country in Focus").
 * "Nigeria reinforces oil town," BBC, June 3, 1999.
 * "Shell invests $1bn on Nigerian oilfield," BBC, October 29, 1999.

2000

 * Barnaby Phillips, "Nigerians seize Shell gas plant," BBC, March 13, 2000.
 * "Nigerians release Shell oil workers," BBC, March 17, 2000.
 * "Militants close Nigerian oil plant," BBC, May 16, 2000.

2001

 * "Oil Industry Operators Urged to End Unethical Practices," allAfrica.com, April 9, 2001.
 * Wale Adabanwi, "Nigeria: Shell of a State," Dollars and Sense Magazine (ThirdWorldTraveler.com), July/August 2001.
 * "Rig hostages freed in Nigeria," BBC, August 27, 2001.
 * James Whittington, "Nigeria's oil wealth shuns the needy," BBC, December 28, 2001.

2002

 * Symposium Proceedings: "African Oil: A Priority for U. S. National Security and African Development," Institute for Advanced Strategic & Political Studies, January 25, 2002.
 * Mike Crawley, "With Mideast uncertainty, US turns to Africa for oil," Christian Science Monitor, May 23, 2002.
 * "Nigeria: Oil, Poverty, and Rights, 2," Africa Action, July 9, 2002.
 * Charles W. Corey, Press Release: "Major West Africa Oil And Gas Conference Opens In Houston," The United States Diplomatic Mission to Nigeria, November 20, 2002.
 * Simon Robinson, "Black Gold - The U.S. is becoming less reliant on Middle Eastern oil, thanks to West Africa," TIME Online, December 23, 2002.

2003

 * Jean-Christophe Servant, "The New Gulf Oil States," Le Monde Diplomatique, January 8, 2003.
 * "Nigeria Fact Sheet Human Rights & Oil Worksheet," International and Area Studies, University of California, Berkeley, January 31, 2003.
 * Paul Maidment, "The Other Gulf," Forbes, March 10, 2003.
 * Neela Banerjee, "Oil's Pressure Points," New York Times, April 13, 2003.
 * "Nigeria in Transition: Nigeria's Oil Industry: A Cursed Blessing?" PBS Online NewsHour, July 2003.
 * "What Nigeria's oil industry must do now," Alexander's Gas & Oil Connections, July 1, 2003.
 * Salisu Na'inna Dambatta, "Tackling vandalism in Nigeria's oil industry," Alexander's Gas & Oil Connections, October 14, 2003.
 * N.K. Obasi, "Foreign Participation In The Nigerian Oil and Gas Industry," OnlineNigeria.com, December 29, 2003.
 * "Major Multinational Oil Companies Engaged In Joint-Venture Operations In Nigeria," OnlineNigeria.com, December 29, 2003.

2004

 * "Violence in Nigeria's Oil Rich Rivers State in 2004, Human Rights Watch (January 2005).
 * Sam Olukoya, "Labour-Nigeria: Oil Industry Crisis Worsening," Inter Press Service (allAfrica.com), July 29, 2004.
 * Tori Foxcroft, " Nigeria's Oil Crisis," news24.com (Energy Bulletin), July 29, 2004.
 * "Tension Over Oil in Nigeria," PBS Online NewsHour, August 25, 2005.
 * Justin Blum, "Terrorists Have Oil Industry in Cross Hairs. Economic Disruption Is a Key Goal," Washington Post, September 27, 2004.
 * Dr. Emmanuel O. Emmanuel, "Gauging Progress on Oil in Nigeria: Community Relations, Development Impact and Revenue Transparency," Center for Social & Corporate Responsibility (Port Harcourt, Nigeria), presented September 27, 2004, at "The Crude Reality: Africa’s Oil Boom and the Poor", A Panel Discussion at Fordham University School of Law, New York, NY, and September 29, 2004, at the NGO Briefing at Environmental Defense, Washington, DC.
 * "Maugein's Rich Connections: All Roads Lead to Nigeria," ATSNN.com, December 18, 2004. re Patrick Maugein and Marc Rich
 * Stephen Glain, "Yet Another Great Game (China, US & Oil)," Newsweek International (ThirdWorldTraveler.com), December 20, 2004.

2005

 * Jim Lobe, "Guns and Gangs in Nigeria's Oil Capital," Inter Press Service, January 4, 2005.
 * Dino Mahtani, "Oil industry: Hopes pinned on offshore development," Financial Times (UK), April 23, 2005. Subscription required.
 * Eric Campbell, "Nigeria Oil War," ABC News (Australia), May 31, 2005.
 * "Nigeria, oil giants to spend 41 billion dollars on oil, gas projects," Xinhua (People's Daily Online), June 25, 2005.
 * Princeton N. Lyman, "China’s Rising Role in Africa," Council on Foreign Relations, July 21, 2005.
 * Steve Inskeep, "The Race to Share in Nigeria's Oil Bounty," NPR, August 22, 2005.
 * Steve Inskeep, "Oil Pits Locals Against Companies, Government," NPR, August 23, 2005.
 * Steve Inskeep, "Deadly Oil Skirmish Scars Nigerian Town," NPR, August 25, 2005.
 * "Hundreds of firms vie for Nigerian oil," Al-Jazeera, August 29, 2005: "Representatives from hundreds of oil firms are in Nigeria for an announcement on the winners of dozens of new oil-exploration licenses for plots across Africa's largest oil producer."
 * Craig Timberg, "As Tensions Escalate in Nigeria, Chevron Shuts Down Two Flow Stations. Militant Group Threatens to Destroy Oil Industry," Washington Post, September 23, 2005.
 * "The New Face of Nigeria's Oil Industry," NigeriaBusinessInfo.com, October 10, 2005.
 * "Oil and injustice in Nigeria," Amnesty International, November 2005.
 * Paul I. Adujie, "National securities of America and Nigeria," Alexander's Gas & Oil Connections, November 1, 2005.
 * "Nigeria: Oil in the Niger Delta threatens lives," Amnesty International Canada, November 3, 2005.

2006

 * Chris Hogg, "China oil firm buys into Nigeria," BBC, January 9, 2006: "CNOOC, one of China's largest state-run oil and gas producers, has agreed to buy a stake in a Nigerian offshore oil and gas field for $2.3bn (£1.3bn)." see China's oil industry
 * Peter S. Goodman, "CNOOC Announces $2.3B Nigeria Investment," Washington Post, January 9, 2006.
 * Black River Eagle, "China in Africa: The CNOOC Nigerian Oil Deal," Jewels in the Jungle, January 10, 2006.
 * Esther Pan, "China, Africa, and Oil," Council on Foreign Relations, January 12, 2006.
 * "Twin blow cuts Nigerian oil flow," BBC, January 12, 2006: "Nigeria's oil production has been cut by 10% after an explosion and the kidnapping of four foreign oil workers."
 * Simon Freeman, "Shell quits Nigeria oil stations as violence flares," Times Online (UK), January 16, 2006.
 * Daniel Howden, "Shell may pull out of Niger Delta after 17 die in boat raid," The Independent (UK) (CorpWatch), January 17, 2006.
 * "Pouring trouble on oily waters. Rebels in the main oil region are threatening stability nationwide," The Economist, January 19, 2006.
 * Alexis Akwagyiram, "Working in a danger zone," BBC, January 20, 2006.
 * Emma Amaize, "Killings, Kidnap in Niger-Delta: Villagers flee en masse from troubled spots as pressures mount over abducted foreigners," Vanguard Online, January 21, 2006.
 * "Nigerian oil fuels Delta conflict. Nigeria's Delta region is home to vast oil reserves, which make the country one of the world's biggest oil exporters," BBC, January 25, 2006.
 * "Oil-rich Niger Delta faces 'shocking' new wave of violence," IRIN News, January 27, 2006.
 * Andisheh Nouraee, "Why is civil unrest in Nigeria costing Americans money?" Creative Loafing (Atlanta, GA), February 1, 2006.
 * Vivienne Walt, "China's African Safari," Fortune (CNN 'Money'), February 8, 2006: "In the heated race to tap Africa's oil resources, the Chinese are everywhere, despite unrest that has prompted others to pull back."
 * "OPEC Output Down 120,000 bpd in January," Platts (RIGZONE), February 14, 2006: "Nigeria's output fell further after a series of militant attacks on oil installations in the Niger Delta, although the drop was partly offset by rising deepwater offshore production from Shell's Bonga field."
 * Vivienne Walt, "China's appetite for African oil grows. African governments view China as a more cooperative partner than the West," Fortune (CNN 'Money'), February 15, 2006.
 * "Nigeria oil 'total war' warning," BBC, February 17, 2006.
 * Jad Mouawad, "Violence in Nigeria Sends Oil Higher," New York Times, February 21, 2006.
 * "Nigeria's shadowy oil rebels," BBC, February 21, 2006: "The Movement for the Emancipation of the Niger Delta, which has threatened 'total war' in Nigeria's main oil-producing region and is behind the recent kidnapping of oil workers is a shadowy group, about which little is known.".
 * Dino Mahtani, "Nigerian oil industry helpless as militants declare war on Obasanjo," Financial Times (CorpWatch), February 21, 2006.
 * Lynn J. Cook and Gregory Katz, "New Nigerian strife raises uncertainties. 'Quasi-permanent state' of violence in oil-rich delta," Houston Chronicle, February 22, 2006.
 * Lydia Polgreen, "Armed Group Shuts Down Part of Nigeria's Oil Output," New York Times, February 25, 2006.
 * Charlie Zhu and Wendy Lim, "Oil turmoils test Chinese buyers' risk appetite," Reuters (Globe and Mail), March 1, 2006.
 * Maryelle Demongeot, "Oil rises for fourth day; Nigeria, Iran support," Reuters (Boston Globe), March 2, 2006.
 * "Militants threaten new attacks on oil industry," Reuters (CNN), March 5, 2006.
 * "South Korea Wins Nigeria Oil Drilling Venture, May Spend $6 Bln," Bloomberg News, March 10, 2006.
 * G. Pascal Zachary, "Nigeria: The Next Quagmire?" AlterNet, March 14, 2006.
 * Hector Igbikiowubo and Luka Binniyat, "South Korea beats India to Nigeria’s blocs 321 & 323 ... Offers $6 Bln investment package," Vanguard Online, March 14, 2006.
 * Edward Harris, "Towers of burning gas: Nigeria's oil curse," Mail & Guardian Online (Africa), March 16, 2006.
 * Adam Wolfe, "The Increasing Importance of African Oil," allAfrica.com, March 20, 2006.
 * "Nigeria oil output to 'hang in balance' - US intel," Reuters (Engineering News (Africa)), March 23, 2006.
 * Fred Bridgland, "Big oil and the troubled waters of the Niger Delta," Sunday Herald (South Africa), March 25, 2006.
 * "Nigeria Militants Report Clash, Vow More Oil Worker Kidnappings," Bloomberg News, March 25, 2006.
 * "Chronology: Nigerian militants' attacks on oil industry," Reuters Alertnet, March 27, 2006.
 * Segun Owen, "Briton freed in Nigeria," Reuters (UK), March 27, 2006.
 * Randy Fabi, "Oil falls below $64 after Nigerian hostage release," Reuters (UK), March 27, 2006.
 * "Nigerian govt, oil firms discuss resumed production," MarketWatch, March 27, 2006.
 * Dulue Mbachu, "Update 1: China's Hu Signs Oil Deal With Nigeria," Associated Press (Forbes), April 27, 2006.