Oil and Gas in Nigeria

Nigeria is the 12th largest producer of petroleum in the world and the 8th largest exporter, and has the 10th largest proven reserves. (The country joined OPEC in 1971.) Petroleum plays a large role in the Nigerian economy, accounting for 40% of GDP and 80% of Government earnings. However, agitation for better resource control in the Niger Delta, its main oil-producing region, has led to disruptions in oil production and prevents the country from exporting at 100?pacity.

The Niger Delta Nembe Creek Oil field was discovered in 1973 and produces from middle Miocene deltaic sandstone-shale in an anticline structural trap at a depth of 2 to 4 kilometres (7,000 to 13,000 feet). In June 2013, Shell announced a strategic review of its operations in Nigeria, hinting that assets could be divested. While many international oil companies have operated there for decades, by 2014 most were making moves to divest their interests, citing a range of issues including oil theft. In August 2014, Shell Oil Company said it was finalising its interests in four Nigerian oil fields.