Oil and gas production involve the extraction of hydrocarbon from the subsurface from an established quantity of recoverable reserve which is often of commercial quantity. Crude oil exploration and production in Nigeria is domiciled in the upstream petroleum segment of the value chain. The federation gets a share of the crude produced from all the production arrangements it is a party to. All federation share of crude oil and gas is lifted and exported by the NNPC on behalf of the Nigerian state.


A total of 81 and 39 wells were drilled in 2018 and 2019 respectively: 66 and 37 development wells and 15 and 2 exploratory wells. Within the period, the country grew its production capacity by 10.24% and had a plan to expand capacity from 4mb/d to 4.4mb/d by 2021.

There were 3 active OPLs in the joint development zone between Nigeria and Sao Tome and Principe in 2018. There was however no exploration activity on those areas due to non-submission of work programme and budget by the operators. Production sharing contracts for Blocks 7,8, and 11 were signed on the 14th of March 2019 with a 3-phased 8-year work programme. The approved activities for 2019 include environmental studies (ESIA) and preparation for the 3D acquisition survey.


Nigeria produced 701.101 million and 735.244 million barrels of oil (and field condensate) in 2018 and 2019, respectively. It also produced 2,909,143.56 and 3,047507.32 mmscf of gas in the period. More details on production in the year can be found in Chapter 2 of the NEITI Oil and Gas Industry Report (2018 and 2019).

The DPR now publishes a close to real time oil production report here. This report shows crude oil and condensate volumes produced per stream. It also disaggregates values for spiked and unspiked condensate.

Production activities concentration

Crude oil and gas is currently 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 offshore activity in the Bight of Bonny, Bight of Benin, and the Gulf of Guinea. Table 25 - Appendix 6 of the main report shows location of each producing OML.


 Figure 1: Map of Nigeria showing sedimentary basins

Source: NEITI 2013 oil and gas report

Estimated value for crude oil produced was US$50.486 billion and US$48.239 billion for 2018 and 2019, respectively. The production data was supplied by DPR. The crude oil monthly Average Selling Price ($) per barrel was computed using the monthly total sales data supplied by COMD. The total estimated production value was arrived at, by multiplying the monthly volumes with the average monthly price for each year.

It also produced 2,909,143.56 and 3,047507.32 mmscf of gas valued at US$ 8.902 million and US$ 9.325 million respectively in the period. In the domestic market, there are varying prices for the sale of gas depending on the purchaser from NGC. The price per mscf for power generation is $1, for commercial - $3.06, while as feedstock (industrial), i.e. Notore price is $0.689 and ALSCON 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. Gas produced is utilized for sales, used as fuel gas, re-injected, liquefied 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 period. For further details on gas production, lifting and sales see chapters 2 and 3 of the NEITI 2018 and 2019 Oil & Gas Industry Reports.

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