NIGERIA NATIONAL PETROLEUM CORPORATION

How has commercialization of the Nigeria National Petroleum Corporation affected the country's economy?

TABLE OF CONTENTS

Introduction3

Statement of Research Problem5

Research Questions6

Significance of the study6

Brief Literature Review and Research Process8

Research Process10

Methodology11

Previous attempts at eliminating flaring activities in Nigeria14

Existing gas projects in the country15

Domestic natural gas utilization for cooking26

Domestic natural gas utilization for electricity generation28

Results and discussion29

Proposed natural gas domestic market development implications for elimination of natural gas flaring36

Conclusion37

How has commercialization of the Nigeria National Petroleum Corporation affected the country's economy?

Introduction

Before the breakthrough of oil in Nigeria in 1956, oil multinationals, mostly BP {British petroleum}, Shell and Mobil were to blame for the importation and trading of perfected fuel. The foremost players in the oil and gas commerce are the worldwide oil businesses which encompass the Shell Group, ExxonMobil Corporation, Agip International B.V., Texaco Corporation, Chevron Corporation, etc. These multinational oil businesses function in Nigeria through in the local area listed affiliates and subsidiaries; namely, Shell Petroleum Development Company of Nigeria Limited, Nigerian Agip Oil Company Limited, Chevron Nigeria Limited, Mobil Producing Nigeria Unlimited, Texaco Nigeria Limited, Total Nigeria Limited, etc.

Following the implementation of Nigerian localized content principle, exact oil blocks have been earmarked for Nigerians, and these blocks have been termed 'indigenous blocks'. Consequently, the Nigerian holders of these blocks are needed to keep a smallest of 60% equity stake in indigenous blocks at all times. Nigerian indigenous oil businesses encompass South Atlantic Petroleum Nigeria Limited, Oando Plc, Obat Oil Nigeria Plc, Conoil Plc, etc.

The breakthrough of oil in Nigeria conveyed riches, but this was subsequent pursued by a string of connections of problems. Agriculture, the vintage mainstay of the finances, was effectively left behind (Dutch disease). Oil became the source of over 90% of the country's foreign exchange making www.nationsonline.org). Nigeria then connected OPEC in 1971(www.opec.com)

The members of OPEC primarily verified advantageous because it endowed the body to lift oil charges to its members' advantage. However, it subsequent backfired, as Nigeria was at some issue guarded to make at half its accessible capacity. As a outcome of the demand for oil internationally, the capability then selected up but its advancement was hampered by the anxious Niger-Delta region-the urgent position between the government, Oil businesses and the militant. The country's first refinery is located at Alesa Eleme, beside Port Harcourt. The Refinery, which was requested in October 1965, has an established capability of 35,000 barrels per day. The second oil refinery constructed at Warri (100,000 EPSD) was requested in 1973 and subsequent amplified to 125,000 barrels per day while the fuel part of the Kaduna Refinery (100,000 APSD) was requested in 1980 and has been amplified to 110,000 barrels per day (www.amec.com). The capability of the vintage Port was amplified in 1986 from 35,000 barrels per day to 60,000 barrels per day. The new refinery in Port Harcourt is close to its full capability of 150,000 barrels per day, with some teaches making unleaded gasoline that proceeds partially to the ...