Oil Producing States in Nigeria & Barrels per Day, History and Refineries

Oil Producing States in Nigeria
Share this Post:

This article extensively covers the top oil producing states in Nigeria and the number of barrels they produce. It goes ahead to highlight the history of crude oil in Nigeria, the refineries, and the top oil companies in Nigeria.

Let’s get right to it.

Oil Producing States in Nigeria – An Introduction

Nigeria is the most populous black nation in the world.

It also ranks as one of the largest nations in Africa.

Aside from the military might, Nigeria is home to many natural resources, including crude oil.

Even as the country is walking towards an exit from a mono-product economy, it is fact that the bulk of the nation’s revenue is generated from crude oil. 

It’s worthy to note that Nigeria is a member of the Organization of Petroleum Exporting Countries (OPEC), with her membership dating back to 1971.

Besides being the highest crude oil-producing country in Africa, Nigeria is at the moment the 15th oil-producing country in the world behind Qatar and above Angola, according to Trading Economics

Related: Most Populated State in Nigeria; Top 10

History of Crude Oil in Nigeria

The oil and gas industry in Nigeria goes as far back as 1908.

As at the time, a German business outfit, Nigerian Bitumen Corporation, started their oil exploration activities within an area called Araromi, in Ondo State, Nigeria.

The company’s activities progressed until there was an interruption in 1914 due to the First World War.

The company exited afterward.

Years after, in 1937, oil exploration in Nigeria resumed.

This was after the Shell Petroleum Development Company of Nigeria (Shell D’Arcy), a multinational company, got the sole concessionary coverage of the entire territory.

Their exploratory activities suddenly halted because of the Second World War. 

The company resumed her exploration activities in 1947 and reinforced its effort by investing over 30 million Naira.

This investment and its utilization led to the first discovery of oil in commercial quantity in Nigeria, in a place called Oloibiri, in the year 1956.

Thus, it’s safe to say that;

Crude oil was discovered in Nigeria in 1956 in a place called Oloibiri, in the present-day Bayelsa State, one of the south south states in Nigeria.

This discovery of crude oil in Nigeria for commercial purposes, industrialized the Nigerian oil industry in 1961.

It was during this time that oil companies such as Agip, Mobil, Safrap (Elf), Tenneco (Texaco), and Amoseas (Chevron) started operations in Nigeria. 

There was a massive onshore and offshore exploration in the country, and the sole concessionary right earlier given to Shell was withdrawn and extended to these other companies. 

Crude Oil production from Oloibiri, Bayelsa State, started at the rate of 5,100 barrels per day, in 1958.

This quantity doubled within the following years, growing to the rate of 2 million barrels per day in 1972.

By this time, more companies had joined in the exploration following the discovery of oil in Nigeria. 

Nigeria was in that year ranked the 7th highest oil producing country in the world. 

Production kept increasing until the country started producing up to 2.40 million barrels per day in 1979

The data reached an all-time high of 2,496.000 Barrel/Day in Nov 2005 and a record low of 1,419.000 Barrel/Day in Aug 2016, according to CEIC Data.

Related: ExxonMobil Nigeria Salary Structure; Know How Much

With the history and discovery of oil in Nigeria covered, let’s look at the top oil producing states in Nigeria and how many oil barrels they produce per day.

Oil Producing States in Nigeria 2020

According to Global Edge, as of 2018, Nigeria’s oil production was about 2,057492 thousand bbl/day, while the oil consumption in 2017 was about 429 thousand bbl/day.

Furthermore, the oil sector provides for 95% of Nigeria’s foreign exchange earnings and 80% of its budgetary revenues.

Reinforcing the oil and gas industry statistics, based on current CEIC reports, Nigeria, in 2019, had an average production of 2.10 million barrels per day.

In July 2020, the country recorded the production of 1,488,000 barrels per day.

This was a 9,000 bpd decrease from the 1,497,000 barrels per day produced in June 2020.

Of course, Nigeria’s maximum daily production capacity still stands at over 2.5 million barrels, and the daily consumption of Oil in Nigeria stands at over 430,000 barrels per day as of 2020.

The statistics show that Nigeria is actively producing and exporting crude oil.

It’s crucial to point out the frontier oil producing states in Nigeria (the Niger Delta states) and the barrels they produce per day.

Although many states have oil reserves, below are the top nine oil-producing states in Nigeria and their barrels per day:

Top Read: Construction Companies in Nigeria; Complete List & All to know

Top Nine Oil Producing States in Nigeria 2020 and their Barrels per day.

1. Akwa Ibom State

Akwa Ibom State is one of the highest oil producing states in the country. The state is located within South-South Nigeria – the Niger Delta area.

It is home to about three Nigerian popular ethnic groups – Annang, Ibibio, and Oron.

The population of Akwa Ibom State hit six million as of 2018, spreading across thirty-one (31) Local Government Areas.

Akwa Ibom State is the largest oil producing state in Nigeria after it overtook Rivers and Delta States recently. The state produces around 504,000 barrels per day (BPD) and accounts for about 31.4% of the total daily oil production in Nigeria.

The state also has mineral resources like coal, limestone, clay, and glass sand.

Related: Top Tourist Attractions and Top Things to do in Akwa Ibom

2. Delta State

Delta State is one of the states in the south-south area of Nigeria.

The Niger Delta state has a population of over four million people, across the twenty-five (25) Local Government Areas of the state.

Itsekiri, Urhobo, and Isoko are the major ethnic groups in the state.

Delta State ranks 2nd when it comes to the list of oil producing states in Nigeria 2020 with a daily production of 346,000 barrels, which accounts for 21.56 % of the total daily production in Nigeria

Warri, which is at the central part of the state, has a petrochemical plant as well as one of the refineries in Nigeria.

Related: Tourist Attractions and Things to do in Delta State

3. Rivers State

Rivers State is one of the Niger Delta states in Nigeria and has its capital as Port Harcourt.

With a population of over five million, the state ranks as one of Nigeria’s most populous states

Initially, Rivers State was the largest oil producing state in Nigeria, before production stepped up in Akwa Ibom State. 

Currently, Rivers State produces about 344,000 BPD, which is about 21.43 % of the country’s total crude oil production.

Related: Top Shipping Companies in Nigeria; Complete List.

4. Bayelsa State

Oil was first discovered in commercial quantity in Nigeria, in a community called Oloibiri in the year 1956.

This city is located in the present-day Bayelsa State and plays a significant role in oil and gas history in Nigeria

Bayelsa State is the 4th highest oil producing state in Nigeria with a production rate that amounts to 18.07% of the total crude oil production in Nigeria, at the rate of 290,000 BPD.

Bayelsa State remains one of the least populated states in Nigeria, with fewer than two million people distributed across eight Local Government Areas.

It’s among the southern states in Nigeria that have their territory covered majorly by water.

Related: Top Tourist Attractions and Top Things to Do in Bayelsa State

5. Ondo State

Ondo State is the 5th oil producing state in Nigeria and is first on the list of southwestern states that produce crude oil.

The state has nineteen (19) Local Government Areas, occupied by over 2.3 million individuals

Ondo State produces about 60,000 BPD of oil, which is about 3.74 % of the country’s total production

The state also enjoys revenue from Tar Sand and Bitumen.

6. Lagos State

Lagos State is the 6th oil highest producing state in Nigeria, even though oil was discovered earlier than the previously mentioned states. The state accounts for 40,000 BPD, which is about 2.64% of the nation’s total output.

Lagos State is of the southwestern region of the country and is home to over fourteen million residents.

It is the commercial hub of the country and the most populated state in Nigeria.

With Ikeja as its capital city, Lagos State the most cosmopolitan state in the country, accommodating many other tribes, asides the indigenous Yorubas.

Related: Top 18 Places to Stay in Lagos

7. Edo State

Edo State has a population of over three million people and has Benin City as its capital city.

The state is a surprising addition to the list of oil producing states in Nigeria

Edo State accounts for 2.06% of the total crude oil production output in Nigeria, producing about 33,000 BPD.

The state also has some other resources in commercial quantities, including granite, iron ore, fine sand, limestone, and clay.

Related: Top Tourist Attractions and Things to do in Edo State

8. Imo State

Imo State is located in the southeastern part of the country and has Owerri as its capital city.

The state comprises twenty-seven Local Government Areas, with a population of over three million people

Imo state is the richest state in igboland 2021.

Imo State, which is one of the Niger Delta states in the southeast, is on the list of states that produce oil in Nigeria because it accounts for 17,000 BPD (1.06% of the nation’s total output).

9. Abia State

Abia State is the home to over two million people, spread across seventeen Local Government Areas.

Umuahia is the capital city of this state with amazing festivals and the legendary Ariaria International market.

This state accounts for 0.68% of the total oil production output in Nigeria. By that, Abia produces 11,000 BPD, which is the least on the list.

Nevertheless, Abia also has deposits of limestone, fine sand, zinc, and lead.

Related: Top Tourist Attractions And Top Things To Do In Abia State

Read: Third Mainland Bridge; Everything to Know

List of Oil Exploration Companies in Nigeria

Nigeria has, over the years, become home to many exploration companies. 

Some of the top oil exploration multinational companies in Nigeria are;

  • Addax Petroleum Exploration
  • Agip Energy & Natural Resources
  • Brass Exploration
  • Chevron Nigeria
  • Conoco Petroleum
  • Elf Petroleum
  • Mobil Producing Nigeria
  • Nigerian Agip Exploration (NAE)
  • Nigerian Agip Oil (NAOC)
  • Shell Nigeria Exploration & Production (SNEPCO)
  • Shell Petroleum Development Company of Nigeria
  • Total Upstream Nigeria
  • Texaco Nigeria Outer shelf
  • Texaco Overseas (Nigeria) Petroleum (TOPCON)
  • Statoil Nigeria

Additionally, there are also indigenous oil and gas companies in Nigeria that are also into crude oil exploration in Nigeria

Related: Schlumberger Nigeria; Top 17 Things You Wished You Knew About Them

Some of the companies on the list of Nigerian Local/Indigenous Oil and Gas Companies include;

  • Famfa Oil 
  • Conoil Producing
  • Nigerian National Petroleum Corporation (NNPC)
  • Nigerian Petroleum Development Company (NPDC)
  • Niger Delta Petroleum Resources
  • Atlas Oranto Petroleum
  • Amalgamated Oil
  • Noreast Petroleum
  • Sahara Energy Fields
  • Pan Ocean Oil Corporation
  • Orient Petroleum Resources
  • Midlantic Oil & Gas Company 
  • Allied Energy Resources (Nigeria)
  • Express Petroleum & Gas
  • Optimum Petroleum Development

Added to the oil and gas companies above are some other local companies and government agencies and associations that oversee the exploration activities – allied activities included. 

Refineries in Nigeria

According to the Department of Petroleum Resources (DPR), a petroleum regulatory agency in Nigeria, Nigeria currently has five refineries.

The Nigerian government owns four of these refineries, under the management of the Nigerian National Petroleum Corporation (NNPC).

In contrast, the remaining plant is owned by the Niger Delta Petroleum Resources (NDPR). 

The refineries in Nigeria are as follows:

1. Port Harcourt Refinery

This refinery is operated by the Nigerian National Petroleum Corporation (NNPC), through its subsidiary, the Port Harcourt Refining Company (PHRC).

This plant produces about 210,000 barrels of crude oil per day.

The PHRC is comprised of two refineries, with locations at Alesa-Eleme in Rivers State.

While the older refinery was commissioned in 1965, with the production capacity of 60,000 barrels per day, the newer refinery with the production capacity of 150,000, was commissioned in 1989

The Port Harcourt refinery plant produces; 

  • Premium Motor Spirit (PMS)
  • Liquefied Petroleum Gas (LPG)
  • Automotive Gas Oil (AGO)
  • Dual Purpose Kerosene (DPK)
  • High Pour Fuel Oil (HPFO) and 
  • Low Pour Fuel Oil (LPFO). 

The plant produces these using the Bonny Light Crude Oil (BLCO), a high grade of Nigeria crude oil with high API gravity and low specific gravity produced in the Niger Delta basin and named after the region around the city of Bonny (Bonny Island).

Related: Top Seaports in Nigeria

2. Warri Refinery

Warri refinery is located at Ekpan, Warri, in Delta State.

The refinery was commissioned in 1978, with a refining nameplate capacity of 100,000 barrels per day.

But then in 1987, it was upgraded to 125,000 barrels per stream day. 

This refinery is under the operation of Warri Refining & Petrochemicals Company (WRPC) Limited, which is a subsidiary of NNPC.

It was installed as a diverse conversion plant, with the capacity of producing; 

  • Premium Motor Spirit (PMS)
  • Liquefied Petroleum Gas (LPG)
  • Dual Purpose Kerosene (DPK)
  • Automotive Gas Oil (AGO)
  • Fuel Oil from a combination of Escravos crude oil and Ughelli crude oil. 

3. Kaduna Refinery

The Kaduna refinery, located in Kaduna State and operated by the Kaduna Refining and Petrochemicals Company (KRPC) has a nameplate refining capacity of 110,000 barrels per day.

It has a diverse conversion configuration, and also a fuel plant which was commissioned in 1983

This refinery also has a Petrochemical Plant, which was commissioned in 1988.

The plant also has two distillation units, which use Ughelli and Escravo’s crude oils to produce fuel and other products.

4. Niger Delta Petroleum Resources (NDPR) Refinery 

This refinery is located in Ogbelle, Rivers State.

It has a production capacity of 1,000 barrels per day.

The refinery produces diesel for its internal consumption, and sells the excess to the immediate locality.

5. Indorama Eleme Petrochemicals Company Limited 

This refinery was initially known as Eleme Petrochemicals Company Limited (EPCL) and was acquired in 2006 from the NNPC during the privatization program by Indorama, the core investors.

The refinery complex is in Eleme, Rivers State, and is majorly into the production of petrochemicals like ranges of polyethylene and polypropylene products.

Private Refineries in Nigeria.

The top private refineries in Nigeria as of 2020 include;

  • Niger Delta Petroleum Resources (NDPR) in Ogbelle, Rivers State
  • Amakpe Internation Refinery in Eket, Akwa Ibom State.
  • Resource Petroleum and Petrocemicals Inc. in Ibeno, Akwa Ibom State
  • Kainji Resources Limited in Oguta, Imo State
  • Omega Butler Refineries Nigeria in Ikpokiri, Rivers State.
  • Dangote Industries Limited in Lekki Free Trade Zone, Lagos State.

Note that majority of these private refineries have their license and are yet to start full operation. A good number of them will have their license expiring soon. We hope they renew.

Oil Producing States in Nigeria; Private Refineries in Nigeria.
Source: Department of Petroleum Resources; Petroleum Regulatory Agency of Nigeria.

FAQ on the Oil Producing States in Nigeria

How many crude oil producing states are in Nigeria?

As of 2021, there are nine crude oil producing states in Nigeria.

These states are;

  • Akwa Ibom
  • Delta
  • Rivers
  • Bayelsa
  • Ondo
  • Lagos
  • Edo
  • Imo, and
  • Abia states.

These states are currently tapping their crude oil.

Which state is the highest oil producing state in Nigeria?

Akwa Ibom State is the highest/largest oil producing state in Nigeria.

The state produces around 504,000 barrels per day (BPD) and accounts for about 31.4% of the total daily oil production in Nigeria.

Is Anambra State an oil producing state?

Yes. Anambra State is an oil producing state.

However, it’s not on the list of top oil producing states in Nigeria in 2021.

Anambra State became an oil-producing state in 2012 following the efforts of Governor Peter Obi and the stakeholders of Orient Petroleum.

This private indigenous company discovered crude oil in the Anambra River basin.

Which states are Niger Delta in Nigeria?

The states that are Niger Delta in Nigeria are nine states.

These states are;

  • Abia
  • Imo
  • Delta
  • Rivers
  • Bayelsa
  • Edo
  • Akwa Ibom
  • Cross River, and
  • Ondo states.

That is six states in the south-south, two states in the southeast, and one state in the southwest geopolitical zone in Nigeria.

Read: States in the Niger Delta Area of Nigeria

Which is the wealthiest oil company in Nigeria?

The richest oil company in Nigeria as of 2018 is Shell Petroleum, with US$388.4 billion in revenue.

How long will Nigeria oil last?

According to the Department of Petroleum Resources (DPR), Nigeria’s crude oil reserve is about 37 billion barrels.

With two percent of this oil reserve being produced annually, Nigeria’s crude oil is expected to be depleted 49 years from 2020.

Is Lagos State an oil producing state?

Yes.

Lagos State is the 6th largest oil producing state in Nigeria and accounts for 40,000 BPD, which is about 2.64% of the nation’s total output.

The state joined the list of oil producing states around 2016 following the discovery of crude oil by Yinka Folawiyo Petroleum Company Limited in Badagry, Lagos State, Nigeria.

Which are the nine oil producing states in Nigeria?

The nine oil producing states in Nigeria in 2020 include;

  • Akwa Ibom State
  • Delta State
  • Rivers State
  • Bayelsa State
  • Ondo State
  • Lagos State
  • Edo State
  • Imo State and
  • Abia State

Is Cross River an oil producing state?

No.

Cross River State is not an oil producing state.

The state is the only state in Nigeria’s south south region that doesn’t produce crude oil.

Related: Obudu Cattle Ranch (Obudu Mountain Resort); All You Should Know

Which state in Nigeria was crude oil first discovered?

Crude oil was first discovered in Oloibiri community, a place in the current day Bayelsa State.

Does Nigeria have oil reserves?

Yes. Nigeria has oil reserves. Nigeria’s crude oil reserve is about 37 billion barrels.

When was the first oil well discovered?

The first oil well in Nigeria was discovered on the 15th of January 1956 in Oloibiri, a Bayelsa State community.

It was the first commercial oil discovery in Nigeria and was discovered by Shell Darcy, thereby ending 50 years of unsuccessful oil exploration in Nigeria.

Final Thoughts on Top Oil Producing States in Nigeria

Conclusively, Nigeria is on the global map of oil production due to the massive deposit of the commercially viable resource.

By this, Nigeria tops the list of oil-producing nations in Africa and has most of its revenue from the oil and gas industry. 

The nation has, in the past, announced plans for a diversified economy.

Although this has been a journey of a thousand miles, steps are in place to diversify, with an eye on the agricultural and information technology industries

So there you have it; the top oil producing states in Nigeria and the number of barrels they produce per day, history of crude oil in Nigeria, and the refineries in Nigeria.

We hope you found the article resourceful.

Kindly give us your questions and feedback in the comment section and do well to hit the share button to share this post on oil producing states in Nigeria.

Share this Post:

Leave a Reply

Your email address will not be published. Required fields are marked *