Exploration activities in oil and gas are carried out beneath the earth surface in search for hydrocarbon deposits for commercial purposes. Where significant deposits are found, production activities are undertaken to extract the hydrocarbon find, separating the oil, gas and other non-saleable elements in preparation for sales. Nigeria produces crude oil and natural gas from its upstream petroleum activities. Federation equity crude oil is lifted and exported by the NNPC on behalf of the federation. Federation gas is also sold by NNPC to buyers .

Exploration

During the year under review, the industry acquired a total of 1,906.80 sq. km of 3-D seismic data consisting of 675.7987 sq. km of data on land, 775.497 sq. km offshore and 455.505 sq. km deep offshore . More data on rig and well activities can be found in the 2015 oil and gas annual report of the Department of Petroleum Resources (DPR). No exploration activities were carried out in the joint development zone of Nigeria and Sao Tome and Principe .
Seismic data acquisition is ongoing in all inland basins in the country including the Sokoto basin . Data acquisition and drilling activities are also expected to continue in the Chad basin as soon as the security situation is brought under control . In addition to these activities, the NNPC has also announced research collaboration with Halliburton Corporation to enhance the search for commercial hydrocarbons in the inland sedimentary basin of Nigeria.

Buyers include sales to NGC, feedstock sales to NLNG and other off takers.
DPR 2015 Oil and Gas Annual Report (https://dpr.gov.ng/index/oil-gas-industry-annual-reports-ogiar/)
Populated data templates from NSPJDA
http://www.nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/852/Tambuwal-Wants-NNPC-to-Explore-Oil-in-Sokoto-Basin.aspx
http://nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/814/NNPC-Secures-2Billion-Discounts-on-Renegotiated-Upstream-Contracts.aspx

Production

Since 1999, Nigeria has produced about 14,068,235,000 barrels of crude oil averaging about 827,543,235 barrels per year .
Production activities concentration

Crude oil and gas is currently being produced from three sedimentary basins: the onshore Anambra, the offshore Benin (deep-water and ultra-deep-water) and the Niger Delta (shallow and deep-water basins). There are varied types and levels of operation in ten of Nigeria’s thirty-six states (Abia, Akwa Ibom, Bayelsa, Cross Rivers, Delta, Edo, Imo, Lagos, Ondo and Rivers). There is also off-shore activity in the Bight of Bonny, Bight of Benin and the Gulf of Guinea.

Figure 1: Map of Nigeria showing sedimentary basins
fig1Source: NEITI 2013 oil and gas report

http://nnpcgroup.com/PublicRelations/NNPCinthenews/tabid/92/articleType/ArticleView/articleId/818/NNPC-RD-Collaborates-with-Halliburton-for-Oil-Search-in-Inland-Basins.aspx
NEITI Reports (1999 – 2015) (http://www.neiti.gov.ng/index.php/neiti-audits/oil-and-gas)
http://neiti.gov.ng/index.php/neiti-audits/oil-and-gas/category/161-2013-audit-report


Crude oil and gas produced as gathered from NEITI oil and gas industry reports from 1999 – 2015 is presented in the figures below;

Figure 2: Crude production (1999 – 2015)
fig2

Source: NEITI oil and gas industry reports (1999 – 2015)


Figure 3: Gas production (1999 – 2015)
fig3

Source: NEITI oil and gas industry reports (1999 – 2015)

http://www.neiti.gov.ng/index.php/neiti-audits/oil-and-gas


In 2015, total crude oil production was 776.668 million barrels with an estimated value of $40.6 billion. The production data was supplied by COMD and it includes production from the Joint Venture, Production Sharing Contracts, Service Contracts, Sole Risk and Marginal Fields. The crude oil monthly Average Selling Price ($) per barrel was computed using the monthly total sales supplied by COMD. The total estimated production value was arrived at, by multiplying the monthly volumes with the average monthly price.

The total gas produced in 2015 was 3.251 mmscf, valued at $9,903 billion. There are varying prices for the sales of gas in Nigeria depending on the purchaser from NGC. The price per mscf for power generation is $1, for commercial - $3.06, while Notore price is $0.689 and ALSCON price is $0.25.
Therefore, to estimate the total value of gas produced in Nigeria, the rate for commercial buyers was used to compute value for utilized gas, re-injected gas, gas flared and unaccounted gas. The commercial rate was used because gas sold for commercial use accounts for 99% of the total gas sold in 2015.
Gas produced is utilized for sales, used as fuel gas, re-injected and flared into the atmosphere. Federation equity gas sale was made by NNPC and was categorized as export gas.

There was no production from the joint development zone between Nigeria and Sao-tome and Principe in the year. For further details on production and lifting during the year see Chapter 9 of the main report.

Export

Total lifting of crude oil was 780.429 million barrels. All federation lifting was 313.336 million barrels while company lifting was 467.093 million barrels. Actual lifting as per sales invoice was 298.284 million barrels with a sales value of US$15.372 billion. Domestic allocation for the year was 153.918 million barrels with a sales value of US$7.775 billion (N1.505 trillion) . Federation share of equity crude is allocated for export and for domestic use. The portion allocated for domestic use is further allocated for the offshore processing arrangement, refinery processing and direct export. Gas was sold by NNPC for domestic use to NGC. All other gas sales are categorized as export gas. Gas sales in the year was 968.37 thousand MT and 703.29 mmbtu valued at US$1.353 billion. See NLNG Exports in 2015 for details of exports by NLNG and for more details see Chapter 6 of the main report.

Federation lifting includes federation export crude, domestic allocation, tax oil on account of FIRS, royalty oil on the account of DPR, lifting on behalf of MCA, RDP/QIT, lifting on behalf of NPDC and Panocean.
Note that federation lifting is valued in US$ while domestic export is valued in N