Oil Drilling and Exploration

Nigeria has for long been a major producer of crude oil ever since the first commercial well was drilled in Oloibiri in present day Bayelsa state in 1956.

There are about five hundred (500) oil fields in the Niger Delta. Over fifty-five percent (55%) of these are onshore, while the remaining is in the shallow waters (less than 500 metres). Of these fields, one hundred and ninety-three (193) are currently producing while twenty-three (23) have either been closed-down or abandoned. Investment opportunities in the oil and gas industry in Nigeria can be stratified along three categories namely the up-stream, middle stream and down-stream sectors. While the middlestream and downstream sectors has to do with importation, storage and marketing of refined petroleum products, the upstream sector is devoted to the exploration, production and refining of hydrocarbons.

Harvard Petroleum is in the process of expanding drilling capabilitiess to increase upstream operations. We currently own two oil fields. And in collaboration with Orient Oil, our ability to supply crude oil is greatly enhanced.

The country presently has an estimated thirty-five billion, three hundred million (35,300,000,000) barrels of hydrocarbon both onshore and offshore assets mostly domiciled in the Niger Delta basin.

Crude oil reserves of Nigeria increased from 16 billion barrels in 1997 to thirty-seven billion (37,000,000,000) barrels in 2020 growing at an average annual rate of five point zero four percent (5.04 %). Nigeria’s hydrocarbon is classified mostly as “light” and “sweet”, as the oil is largely free of sulphur. Nigeria is the largest producer of sweet oil in The Organization of the Petroleum Exporting Countries (OPEC), the organization for petroleum exporting countries.

This sweet oil is similar in composition to petroleum extracted from the North Sea. This crude oil is known as “Bonny light”. Names of other Nigerian crudes, all of which are named according to export terminal, are Qua Ibo, Escravos blend, Brass rivers, Forcados, and Pennington Anfan.

Nigeria presently ranks tenth in the most petroleum-rich nation, and by the far the most affluent in Africa producing about two and half million (2,500,000) barrels per day. Six oil companies – Shell, Chevron, Mobil, Agip, Elf and Texaco – currently dominate the oil industry in the country. Together, they hold some ninety-eighty percent (98%) of the oil reserves and operating assets. About 50 other companies have minor interests, some of which were recently acquired. Today, recoverable reserves are estimated at twenty-eight billion, five hundred million (28,500,000,000) barrels, with an average productivity of about two million five hundred thousand (2,500,000) barrels per day, including condensates. Average oil depletion rate is fifteen percent (15%) but the reserves base has continued to increase due to increase additions from exploration and appraisal drilling and deep offshore exploration.