Historically, the Nigerian petroleum scene opened as far back as 1908, when a German company, the Nigerian Bitumen Corporation (NBC) was attracted to what is now known as the south-western Nigerian tar sand deposit. A group also strongly believes that the very first oil field was discovered in the South-eastern Nigeria in 1923, way before the famous Oloibiri discovery. The group even claims that colonial documents and evidences exist to prove that oil was first found in Ebonyi, Anambra and Enugu states.
However, the recognised pioneer discovery is that of the Oloibiri fields. Oil was first discovered in Nigeria in 1956 at Oloibiri in the Niger Delta region, after half a century of exploration. This discovery launched the country into the limelight of petro-states. After World War 1, Shell-D’Arcy, a consortium of Shell and Royal Dutch, resumed oil exploration in 1937; this time in Owerri, on the northern frame of the Niger Delta. In 1956, after drilling 28 wells and 25 core holes, all dry, the new operator, Shell-BP, struck oil at Oloibiri.
The discovery made by Shell D’Arcy Nigeria, automatically ushered the country to join the rank of oil producers. In 1958, the first oil field came on stream, producing around 5,000 barrels per day. Following the discovery of oil in commercial quantity in Oloibiri, Shell stepped up exploration in the Niger Delta and by 1958 Shell D’Arcy had discovered oil in 12 other areas, with Oloibiri, Afam and Bomu being the most promising.
From an initial output of 5,100 barrels per day in 1956, the nation steadily rose to the sixth position on the production chart of the Organisation of Petroleum Exporting Countries, OPEC. By the mid-‘70s, Shell, the leading producer, had exceeded the production mark of 1,000,000 barrels per day. Continue reading
Source: Leadership
