ABSTRACT
The evolution of the Nigerian oil and gas industry has spanned about a century during which several challenges have been encountered and surmounted by the major oil companies. The search for oil was pioneered by the German-owned Nigerian Butimen Company in 1908.1 Initially several wells were drilled without success. Following this setback the search was discontinued and was not resumed until 1937 when Shell Petroleum Company and British Petroleum Company (BP) were given concessions by the British government to explore for oil in Nigeria.2 The need to shift to Nigeria as an oil exploration and production base was in part necessitated by the Suez Canal crisis which was at its early stage. There was a general feeling among explorationists that avoiding transportation through the Suez Canal carried a premium political value.3 The concession secured by the pioneer companies was essentially an exploration licence which was to embrace an estimated 357,000 square miles, covering the entire mainland of Nigeria.4
