ABSTRACT
The first attempt to prospect and develop the oil industry in Nigeria can be traced to the year 1908 when a German company, the Nigerian Bitumen Company, began to explore the entire coast of Nigeria for bitumen. After many years of oil prospecting, heavy investment and almost near frustration, Shell BP struck the first oil. The first exploration well was drilled in 1951 at a village called Ihuo about 16 kilometres to the north east of Owerri. Thirteen oil companies operate in Nigeria. Some have been granted licences for oil exploration or prospecting. Others have been granted oil mining leases. There has been a dramatic decline in Nigeria's daily average production rate of crude oil. Only about 16 per cent of Nigeria's oil production is consumed locally. Nigeria's consumption of petroleum products is expected to rise in the coming years. The Kaduna refinery has not yet attained full production capacity.
