Oil and gas production involves the extraction of hydrocarbon from the subsurface with an established quantity of recoverable reserve which is often of commercial quantity. The exploration and production of these deposits involve separating the oil, gas, and residuals for onward use. Crude oil 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. This share is termed the ‘’ equity crude’’, this portion is lifted and exported by the NNPC on behalf of the Nigerian state.


In 2017, a total of 2,397.99 sq. km of 3-D seismic data consisting of 775.61 sq. km of data on land, 735.28 sq. km shallow offshore and 887.1 sq. km deep offshore was acquired by the country. More data on exploration activities can be found in the 2017 oil and gas annual report of the Department of Petroleum Resources (DPR). No exploration activities were carried out in the joint development zone of Nigeria and Sao Tome and Principe.


In 2017, Nigeria produced 690.465 million barrels of oil (and field condensate) at an estimated average daily production of 1.89 million barrels of oil per day. It also produced 3.450 mmscf of gas in the period. These volumes were produced by seventy-nine (79) OMLs. More details on production in the year can be found in Chapter 2 of the NEITI 2017 Oil and Gas Industry Report

Production activities concentration

Crude oil and gas is currently being 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 off-shore activity in the Bight of Bonny, Bight of Benin, and the Gulf of Guinea. Table 2-2 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

In 2017, total crude oil production was 690.465 million barrels with an estimated value of $37.755 billion. The production data was supplied by DPR which includes production from the Joint Venture, Production Sharing Contracts, Service Contracts, Sole Risk and Marginal Fields. The crude oil monthly Average Selling Price ($) per barrel was computed using the monthly total sales supplied by COMD. The total estimated production value was arrived at, by multiplying the monthly volumes with the average monthly price for 2017.

The total gas produced in 2017 was 3.450 mmscf valued at $10.709 million. 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 year. For further details on gas production, lifting and sales during the year see 2017 Commodity Trading Report.