Nigeria, a leading oil producer in Africa, has seen vast developments in its crude oil exploration and production. Historically concentrated in the Niger Delta region, oil exploration is expanding across the country, with significant activities now occurring in the north, east, and offshore areas. These explorations come as part of Nigeria’s broader strategy to maximise its oil reserves, diversify its exploration sites, and strengthen the economy through increased exports.
Key Crude Oil Exploration Sites in Nigeria
Niger Delta
The Niger Delta has long been Nigeria’s primary oil-producing region, housing over 70% of the country’s crude oil reserves. Key states within this region, including Rivers, Delta, and Bayelsa, are home to both onshore and offshore oil fields. Offshore developments in the Bonga and Egina fields have added significantly to Nigeria’s crude oil output. In 2023, the Egina field alone was contributing nearly 200,000 barrels per day (bpd) to Nigeria’s oil production.
New discoveries are consistently being made, with ongoing exploration leading to untapped reserves in deeper offshore locations. These discoveries have made the Niger Delta a focal point of international oil companies (IOCs), with companies such as Shell, Chevron, and TotalEnergies spearheading exploration and production in the region. The region primarily produces Bonny Light, a high grade sweet crude oil favoured for its low sulphur content, making it a top choice for export.
Offshore Developments
Offshore oil exploration in Nigeria has become increasingly critical as the country looks to harness its deepwater and ultra-deepwater reserves. The Bonga oil field, located 120 km offshore, was Nigeria’s first deepwater discovery. The addition of Egina, Agbami, and Akpo oil fields has strengthened offshore production, making it a major contributor to Nigeria’s daily output.
Deepwater explorations have uncovered premium crude grades such as Brass River and Qua Iboe. These grades have high demand in international markets, particularly in Europe and Asia, due to their quality, boosting Nigeria’s export profile.
Northern Crude Oil Exploration
In recent years, Nigeria has been expanding oil exploration to northern regions, particularly in the Gongola and Chad basins. The government’s efforts to explore inland basins have led to discoveries in Bauchi and Gombe states. These developments mark a historic shift in Nigeria’s oil geography, with the Kolmani Integrated Project leading the charge in northern oil production.
The Kolmani oil field, inaugurated in 2022, is expected to produce around 50,000 bpd in its initial phase, with future potential to rise as additional wells are drilled. While these are early stage projects, they are critical to diversifying Nigeria’s oil portfolio and reducing over-reliance on the Niger Delta. The northern crude discoveries are essential for fostering regional economic development and strengthening Nigeria’s overall energy security.
Gas Exploration and the Eastern Region
Nigeria is not just focusing on crude oil but also on gas exploration, particularly in the eastern region. The Anambra and Imo states are leading the charge, with the government prioritising gas development in line with its Decade of Gas initiative. This initiative aims to shift Nigeria’s energy mix towards gas, leveraging the country’s vast natural gas reserves the largest in Africa, at over 206 trillion cubic feet.
The development of gas fields in eastern Nigeria, such as the Okpai and Obiafu-Obrikom fields, is critical for boosting gas exports, supporting domestic electricity generation, and powering industries. Nigeria’s Liquefied Natural Gas (LNG) export capacity, through the Bonny LNG terminal, has also expanded, with ongoing projects increasing Nigeria’s role in the global gas market. The gas produced in this region, primarily wet gas, is crucial for the production of LPG (liquefied petroleum gas) and other gas products used locally and abroad.
New Discoveries and Nigeria’s Crude Grades
Nigeria’s crude oil discoveries have yielded several types of crude grades, each with its unique characteristics and export destinations. The main crude grades produced in Nigeria include:
- Bonny Light – Known for its low sulphur content, it remains the most exported grade from Nigeria, primarily shipped to Europe and North America.
- Forcados – Another light crude, often exported to Europe and Asia.
- Qua Iboe – A premium crude grade, similar to Bonny Light, heavily sought after by refineries due to its quality.
- Brass River – Known for its sweet characteristics, with Europe being the main export destination.
- Escravos – Primarily exported to Asian refineries.
In recent years, Bonny Light has remained Nigeria’s top crude grade, accounting for about 30% of total exports. The highest exploration volumes currently come from the Niger Delta and offshore fields, particularly Egina and Bonga. These locations have proven to be pivotal in stabilising Nigeria’s oil production, which fluctuates between 1.2 to 1.4 million bpd due to challenges like pipeline vandalism and oil theft.
With the expansion of crude oil exploration into the northern and offshore regions, alongside the growing emphasis on gas development, Nigeria’s energy landscape is evolving. The government’s initiatives under the Decade of Gas and ongoing oil exploration projects are set to secure Nigeria’s position as a top energy supplier globally.
Nigeria’s crude oil exploration continues to drive economic growth, with developments across the Niger Delta, northern regions, and offshore locations positioning the country as a vital player in the global oil and gas markets. With a focus on diversifying exploration efforts and tapping into gas resources, Nigeria’s future in the energy sector remains promising, with significant opportunities for both domestic development and international exports.
