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Oil Companies in Nigeria

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Oil Companies in Nigeria

Oil production is a big deal in Nigeria and has increased rapidly over the last decade. This has led to a sharp increase in oil exploration and extraction equipment demand. Indeed, Nigeria is Africa's largest crude oil and natural gas producer. The country also holds the third-largest proven petroleum reserves after Saudi Arabia and Venezuela. In 2016 alone, Nigeria produced 2.2 million barrels per day of crude oil, accounting for nearly 20% of the global supply. While the impact of oil on the country's growth is massive and worth discussing, this article focuses on the oil companies in Nigeria.

Shell

The Shell Group is one of the world’s leading integrated energy businesses. Since its founding, Shell has operated in Nigeria and employs more than 100,000 people. Also, Shell sells its products in about 180 countries through several dealers.

Its core business consists of upstream, midstream, and downstream. Upstream activities include oil and gas exploration; midstream includes pipelines. Meanwhile, downstream covers crude oil and natural gas liquids refining.

Moreover, Shell has consistently adhered to the safety regulations for its surroundings. Shell has invested in Nigerian oil reserves to conduct oil exploration and production. Through the Bonga Field, Shell generates 150 million standard cubic feet of gas daily and 200,000 barrels of crude oil daily.

Additionally, the business has invested in several gas-related projects. Shell has also constructed other gas power plants throughout the nation.

Chevron

Due to their significant investment in Nigeria's crude reserves, Chevron is among the top oil companies. According to information, Chevron produced 200,000 barrels of oil in 2018. Then, in 2020, they had about 1.6 million barrels of oil daily.

The company operates in many parts of the Niger Delta. And this includes the Agbami Field, which contains the largest deepwater discovery.

Chevron operates in many African nations, including Ghana, Cameroon, and Gabon. Also, it operates a joint venture with the NNPC, which receives 60% of the proceeds of operations and 40% from Chevron. And asides being an oil company, it is also involved in chemicals, plastics, and energy trading.

Total

French multinational Total S.A. is another major player in the Nigerian oil industry, with operations in Nigeria, Ghana, Benin, Togo, Burkina Faso, and more. The firm has been operating in Nigeria since 1962, and its headquarters is in Paris, France. Also, Total is involved in LNG, petrochemicals, and energy trading. 

In Nigeria, Total produces about 1.7 million barrels of oil per day. It also owns a 50 percent stake in the Bonny Light offshore oilfield.

ExxonMobil

Exxon has been around since 1955 and is one of Nigeria's most important businesses. The company has more than 300 wells producing more than 500,000 barrels daily. Also, it works in partnership with the Nigerian National Petroleum Corporation (NNPC).

ExxonMobil's main business is getting oil out of the ground, making it, shipping it around the country and the world, and selling it. They have also bought power plants to ensure the country has enough electricity. Moreover, they are famous worldwide for funding research in these business areas.

Addax Petroleum

About 20 years ago, Addax Petroleum Nigeria began production activities in Nigeria. First, they established a joint venture with the Nigerian National Petroleum Corporation (NNPC). And this organization comprised two contracts for production sharing (PSC).

With assets encompassing 11 field complexes and up to 110 producing wells, ADDAX is undoubtedly one of Nigeria's top oil and gas firms.

Forte

Forte Oil & Gas Limited is a leading independent oil and gas company based in Nigeria. At present, the company is listed on the London Stock Exchange and trades under the symbol FORT.

Forte is active in all aspects of the upstream oil and gas sector. This includes drilling, production, processing, transportation, refining, marketing, and distribution. In addition, Forte has interests in downstream sectors such as retailing, manufacturing, logistics, and finance.

Nigerian National Petroleum Commission

The federal government created the Nigerian National Petroleum Commission (NNPC) in 1977, and it's responsible for regulating oil and gas companies in the country. Its primary purpose is to regulate the petroleum industry in Nigeria. The commission oversees hydrocarbons' exploration, development, production, and export. It also ensures a sufficient supply of oil and gas for domestic consumption.

Petrobras

Since its inception in Nigeria in 1988, Petrobras has grown into a large international corporation. Currently, the company is headquartered in Rio de Janeiro, Brazil, but it also has offices in Lagos, Abuja, Port Harcourt, Ibadan, Kaduna, and Calabar.

The company has various activities, including oil and gas exploration, production, refining, and marketing. Their products include gasoline, diesel fuel, jet fuel, kerosene, liquefied natural gas, and crude oil.

Equinor

Formerly known as Statoil, Equinor has been one of the biggest oil companies since it came to Nigeria. Today, the Norwegian firm operates in over 30 countries across five continents. In Nigeria, Equinor produces approximately 200,000 barrels of oil per day, which accounts for about 10% of the total national output. The company is also involved in the exploration of new oil fields.

Nexen

Nexen Energy Inc., formerly Nexen Petroleum Ltd., was founded in 1997. Since then, the Canadian firm has become one of the largest energy companies in Canada. Nigeria produces oil and gas from Bonny Island, Warri, and Port Harcourt.

Intels Nigeria Limited

Intels Nigeria Limited is a subsidiary of Intels International Group, a multinational electronics manufacturer specializing in semiconductors and solar cells. The firm was incorporated in 2001 and is located in Lagos, Nigeria.

Conclusion

Different types of oil and gas companies operate in Nigeria. Some are state-owned, while others are privately owned. There are also some foreign oil companies operating in the country. While each type of company has unique characteristics, they all share common traits of being involved with oil and gas production. They all have challenges, but those who overcome them reap great rewards.

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