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Nigeria's petroleum industry is well grounded in successful exploration,
beginning with the first commercially viable discovery at Oloibiri in the Niger
Delta in 1956, with a modest production rate of 5,100 barrels per day. Reserves
of crude oil stand at 28.2 billion barrels. Natural gas reserves total 165
trillion standard cubic feet (scf), including 75.4 trillion scf of nonassociated
An important ingredient in NNPC's exploration success is the Integrated Data Services Ltd (IDSL), a subsidiary of NNPC. IDSL is one of the largest and most advanced earth science facilities in Africa. Field data is sent to IDSL for analysis using advanced computer systems, giving the company the critical edge in its upstream operations. IDSL processes and interprets in 3-D configurations data from the hydrocarbon reservoirs. This technological capability is instrumental in developing reservoir management strategies, which provide optimum recovery rates over the life of a field.
IDSL has been responsible for most of the country's major oil discoveries and is continuing an intensive exploration programme to increase the nation's hydrocarbon reserves.
A capacity of 6 million b/d though achievable but is not the answer to the state requirements of revenue, while 12 million b/d canít be maintained for a long time and requires higher investment within a short number of years and involves a high risk if the markets cannot absorb it. Committing huge investments to end up with an idle capacity is not an ideal scenario for Iraq. In my view itís more prudent to adopt a phased approach targeting 9 million b/d of production capacity by the end of this decade, taking into consideration that domestic demand for refined products and power generation would need at least 1.5 million b/d within the same timeframe. This leaves us with about 7.5 million b/d of exports to market.
* Lukoil, formed in 1993, is the largest of Russiaís newly integrated oil companies, with estimated reserves of around 8 billion barrels. It has four refineries with a total refining capacity of 470,000 barrels per day. In 1995, the a company produced 1.1 million barrels per day.
* Yukos is the second largest producer, with reserves of around 7.3 billion barrels. The company produced 719,000 barrels per day in 1995. From the company's three refineries, with a combined capacity of 653,000 barrels per day, 1994 refining throughput was 363,490 barrels per day.
* The third largest producer is Surgutneftegas, with reserves estimated at almost 5.5 billion barrels. The company has one refinery with a refining capacity of 386,000 barrels per day. 1995 production averaged 669,000 barrels per day while refining throughput was 243,000 barrels per day.
* Sidanko, with reserves estimated at just over 6.5 billion barrels, has three refineries. The company is the largest of Russiaís refiners, with a capacity of 790,000 barrels per day. Crude production for 1995 averaged 459,000 barrels per day, and refining throughput averaged 400,000 barrels per day.
* The newest company,Oil Company, produced 456,000 barrels per day in 1995. The company owns one refinery, with a capacity of 360,000 barrels per day. In 1995, its refining throughput averaged 148,000 barrels per day. Its reserves are estimated at 6.5 billion barrels.
* The Siberian Oil Company (Sibneft) owns one refinery and has reserves estimated at 2.9 billion barrels. Production in 1995 averaged 409,000 barrels per day for the company, while refining throughput was 330,000 barrels per day. Its refining capacity is 524,000 barrels per day.
* The company Slavneft has two refineries and production of 266,000 barrels per day in 1995. One refinery is located in Belarus. The combined refinery capacity is 670,000 barrels per day.
* Rosneft was once the Russian state holding company but was
turned into an integrated company during the restructuring in the second half of
1995 after many of its producers, refineries, and product distributors were
parceled out to other companies. The company will continue to remain solely
responsible for the governmentís share under production sharing agreements drawn
up with foreign companies. The company now has three refineries, with 477,000
barrels per day combined capacity. Reserves are estimated at just under 3.3
billion barrels. Production averaged 254,000 barrels per day while refining
throughput was 97,700 barrels per day in 1995.
* The three smaller companies - Eastern Oil Company, Orenburg Oil Company (ONAKO), and Komitek - each has one refinery. In 1995, Eastern Oil Companyís production averaged 224,000 barrels per day, while refining throughput was 110,000 barrels per day. ONAKO's production averaged 144,000 barrels per day while its refining throughput was 88,000 barrels per day. Komitekís production averaged 89,000 barrels per day while its refining throughput was 54,000 barrels per day.