Nigeria has a population of over 120 million people and an abundance of natural resources, especially hydrocarbons. It is the 7th largest oil producer in the world, the third largest in Africa and the most prolific oil producer in the sub-Saharan Africa.
The Oil industry is the backbone of the Nigerian economy, accounting for over 90% of our total foreign exchange revenue. Estimates of the total crude oil reserves vary, but are generally accepted to be about 25-30 billion barrels although new offshore discoveries are likely to push this figure to about 40 billion barrels in the near future.
In 1971, Nigeria joined OPEC and in line with OPEC resolutions, the Nigerian National Oil Corporation (NNOC) was established, later becoming the Nigerian National Petroleum Corporation (NNPC) in 1971. This giant parastatal controls and dominates all sectors of the oil industry.
The structure is soon to be changed with the passage of the Petroleum Industry Bill currently before the 2 Houses of Assembly in Nigeria which seeks to create limited liability companies which will warehouse a number of the current joint venture assets between Nigeria and the Oil majors, it also seeks to reorganize the structure internally in the Nigerian Oil and Gas sector.Nigeria is currently positioning for deregulation of the downsstream sector of the Oil industry as such the petroleum products will be left to the market forces in which case demand and suply will determe the selling price in country.With this in view Webb ENERGY is positioning to build a 60kbd refinery in the country this will go to compliment our stake in our Sogara refinery in Gabon (SOGARA)The Government over the last 5 years is placing alot more emphasis on the utilisation of gas for its domestic requirements since Nigeria already maintains a strong global position in the area of LNG supplies and transportation through the NLNG.
The Department of Petroleum Resources (DPR) regulates the Petroleum industry in Nigeria. The government retains close control over the industry and the activities of the NNPC. The Governments new local content policy stipulates the indigenous companies must have an active part in any oil and gas industry investments /operation totally a minimum 40% equity stake in all Nigerian Oil&Gas industry activities.
Source: Adewale A Otegbola. ceo Webb Energy