Nigeria is a country in western Africa practicing a mono economic system with the energy sector playing a vital role in balancing the economy. The country is endowed with abundance of energy resources like crude oil, gas and coal.
Crude oil was first discovered in 1958 in Oloibiri in present day Bayelsa state and is being drilled till today. With the exploration of oil in different parts of the country, Nigeria is currently ranked the largest producer of oil in sub–Saharan Africa and 11th largest oil producer in the world with an estimated production volume of 1.57 million barrels per day.
Crude oil is used in almost every aspect of our day-to-day activities like transportation, food production, pharmaceuticals, clothing and common chemicals. We might not be using the oil directly, but it is without doubt that oil is playing an important role in this era of modern technology to serve our daily needs.
Crude Oil can be drawn out from below the earth’s surface after careful research, calculations and built structures by oil companies through a structure called oil well.
Top 10 Oil Companies in Nigeria
Oil and gas companies are the major industries balancing the energy market, while playing an important role in the Nigerian economy and the world at large. In Nigeria, there are several companies and a few of them have distinguished themselves in area of growing the nation’s economy. Here is a list of the top ten oil companies in Nigeria.
10. Nexen
Nexen Nigeria is a subsidiary of CNOOC limited a Chinese based company. In 2019, the company integrated Nexen to become one team under one brand. Its Nigerian operation is located off the coast of Port Harcourt. The company was also the first to discover oil off the shores of Usan. It’s currently worth $87 billion dollars.
9 Nigerian National Petroleum Company Limited (NNPC)
NNPC was the first government owned oil company in Nigeria formed in 1977 so that the government could exert more power and control over oil revenue in the country. But, recently in July 2022, the Nigerian National Petroleum Corporation became a private limited liability company due to the problem of poor leadership, inefficiency and loss incurrence. With its transition, the NNPC has the potential of becoming the most profitable company in Africa. The company also operates joint ventures with major oil companies like shell, chevron, Agip, total and ExxonMobil. Presently NNPC assets are valued at $90 billion.
8. Addax
Addax is an international oil and gas company established in 1994 as a subsidiary of Sinopec group, an oil company based in China. The company has a vision of reaching a daily production of 500,000 barrels per day but has not been able to reach anywhere near the figure and has a current net worth of about $100 billion. The oil company also has a history of having a total of four licenses revoked by the Nigerian government due to inability of the company to develop their assets, leading to loss of revenue for the federal government.
7. Conoco
Conoco Nigeria is a subsidiary of ConacoPhilips and presently operate upstream oil and gas business. After over 40 years of operation in Nigeria, the company is still involved in the exploration and production of crude oil. It also operates both offshore and onshore oil exploration. The company net worth is valued at $100 billion
6. Total Energies
Total Nigeria is a multinational private oil company specializing in exploration, production and marketing of crude oil and its products. It began operating in 1956 and has been involved in a number of growths leading to its current production of about 20,000 barrels per day and a net worth of about $120 billion The French company is also involved in a number of outreach programmes in the country.
5. Equinor
Equinor began operations in Nigeria in 1992 and has played a significant role in developing Agbami field, the biggest deep water in the country. The company has also carried out various philanthropic projects like healthcare, quality education, employment opportunities to various Nigerians. Equinor currently has a marker cap of $124 billion.
4. AGIP
Agip Nigeria is a subsidiary of Eni, a multinational petroleum company with headquarters in Italy and has had a presence in Nigeria since 1962. The company currently operates onshore and offshore exploration and production sector of the oil economy with its subsidiaries. It was also the first international oil company to give the government of the country the option of participating in its operations after oil discovery. The company has a current net worth of $155 billion
3. ExxonMobil
ExxonMobil is involved in the exploration and production of crude oil in Nigeria. Popularly known as Mobil, Exxon Mobil is majorly involved in the sale of manufactured oil products like natural gas, petrol, diesel and even electric power generation facilities. Oil industry research shows that ExxonMobil is likely to overtake shell as the largest producer of oil in Nigeria in some few years’ time with its current net worth of $182 billion
2. Chevron
Chevron Nigeria, a subsidiary of Chevron corporation is one of the largest oil producer and largest foreign investors in Nigeria. The company was formerly known as Gulf oil company before it changed its name to Chevron Nigeria. It operates mostly on the shore and near the offshore of the Niger Delta region and has a market valuation of $190 billion.
1. Shell BP
Shell is the largest oil company in Nigeria and one of the largest in the world. The company has been in existence in Nigeria since 1937 and is recognized as the largest international oil company in Nigeria. It accounts for 21% of Nigeria’s petroleum production. The company is responsible for a great deal of crude oil spillage in the Niger delta region causing a lot of controversies in the region and eventually a Dutch court ruling to pay damages to the communities inhabiting the region. The company currently has a net worth of $261 billion.