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Magnusbau George
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Top 7 Oil And Gas Companies In Nigeria
Nigeria is Africa's largest oil producer and has one of the biggest oil and gas industries in the world. The sector plays a crucial role in the nation’s economy, contributing a significant percentage of government revenue and foreign exchange earnings. Over the decades, several multinational and indigenous oil and gas companies have shaped the industry through exploration, production, refining, and distribution.
In this blog post, we will explore the top seven oil and gas companies in Nigeria, their history, contributions, and future prospects.
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1. Nigerian National Petroleum Company (NNPC) Limited
The Nigerian National Petroleum Company Limited (NNPC Limited) is Nigeria’s state-owned oil corporation, responsible for regulating and participating in petroleum exploration and production. Established in 1977, NNPC has played a central role in Nigeria’s oil and gas industry.
Key Achievements and Contributions:
In July 2022, NNPC transitioned from a government corporation to a commercial limited liability company, improving operational efficiency.
Owns and operates refineries, pipelines, and storage facilities across Nigeria.
Engages in joint ventures (JVs) and production-sharing contracts (PSCs) with multinational oil companies.
Manages Nigeria’s crude oil exportation and domestic fuel supply.
With assets valued at over $153 billion, NNPC Limited remains Africa’s largest national oil company, contributing significantly to the country’s energy security.
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2. Shell Petroleum Development Company of Nigeria (SPDC)
Shell is one of the oldest and most influential multinational oil companies in Nigeria, dating back to 1936 when it first began operations. Shell Petroleum Development Company of Nigeria (SPDC) is the leading subsidiary of Shell in the country.
Key Achievements and Contributions:
Involved in onshore and offshore oil production, making it one of Nigeria’s top crude oil producers.
Historically, Shell’s joint ventures contributed over 21% of Nigeria’s total oil production.
Invested significantly in gas projects, including the Nigeria Liquefied Natural Gas (NLNG) project.
Recently divested from some onshore assets to focus on deepwater operations and cleaner energy solutions.
However, Shell has also faced controversies, including environmental and legal challenges in the Niger Delta, leading to ongoing litigation and compensation claims.
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3. ExxonMobil Nigeria
ExxonMobil Nigeria operates through two main subsidiaries:
1. Mobil Producing Nigeria Unlimited (MPNU)
2. Esso Exploration and Production Nigeria Limited (EEPNL)
Key Achievements and Contributions:
Second-largest crude oil producer in Nigeria.
Operates numerous offshore platforms, contributing to Nigeria’s daily crude oil output.
Has invested heavily in deepwater exploration and production, ensuring long-term resource sustainability.
Works closely with the Nigerian government to enhance gas utilization and power generation projects.
In 2024, ExxonMobil finalized the sale of its shallow water assets to Seplat Energy, marking a strategic shift towards deepwater exploration.
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4. Seplat Energy
Seplat Energy is a leading indigenous oil and gas company, founded in 2009. The company has gained prominence through strategic acquisitions and successful exploration ventures.
Key Achievements and Contributions:
Listed on both the London Stock Exchange (LSE) and the Nigerian Exchange (NGX).
Acquired 45% interest in three onshore oil blocks in the Niger Delta.
In December 2024, finalized a $1.28 billion acquisition of Mobil Producing Nigeria Unlimited from ExxonMobil, expanding its offshore asset portfolio.
Actively involved in natural gas development to support Nigeria’s energy transition.
Seplat has positioned itself as a key driver of Nigeria’s oil and gas future, with strong investments in gas commercialization and renewable energy solutions.
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5. Oando PLC
Oando PLC is a Nigerian multinational energy company engaged in the upstream, midstream, and downstream sectors. It has a rich history dating back to 1956, when it was first established as Esso West Africa.
Key Achievements and Contributions:
One of the largest indigenous oil companies, with operations across Africa.
Produces over 43,000 barrels of oil equivalent per day (boepd).
In 2024, acquired Nigerian Agip Oil Company (NAOC) for $783 million, further strengthening its upstream portfolio.
Owns and operates extensive petroleum storage, transportation, and distribution networks.
Oando continues to expand its reach, investing in renewable energy solutions and gas projects.
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6. Ardova PLC (Formerly Forte Oil PLC)
Ardova PLC is one of Nigeria’s leading downstream oil and gas companies, focusing on petroleum product distribution. It was formerly known as Forte Oil before rebranding in 2020.
Key Achievements and Contributions:
Supplies petrol, diesel, aviation fuel, lubricants, and liquefied petroleum gas (LPG).
Operates a nationwide network of fuel stations, making petroleum products accessible to Nigerians.
Partnering with international firms to expand its renewable energy portfolio.
Recently acquired Enyo Retail and Supply Limited, adding over 90 service stations to its network.
Ardova PLC is transforming from a traditional oil marketing company into a broader energy solutions provider, embracing the transition to cleaner fuels.
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7. Dangote Refinery
The Dangote Refinery is the newest and most ambitious project in Nigeria’s oil and gas industry. Located in Lekki Free Trade Zone, Lagos, this refinery is set to revolutionize Nigeria’s fuel supply.
Key Achievements and Contributions:
The largest single-train refinery in the world, with a processing capacity of 650,000 barrels per day (bpd).
Aims to eliminate Nigeria’s dependence on imported petroleum products.
Expected to reduce fuel prices and stabilize Nigeria’s domestic energy market.
Began producing gasoline in October 2024, marking a significant milestone.
Once fully operational, the Dangote Refinery will transform Nigeria’s oil refining landscape, reducing fuel import costs and boosting local production.
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Final Thoughts
Nigeria’s oil and gas industry remains the backbone of its economy, driven by a mix of multinational giants and indigenous companies. These seven companies have played significant roles in shaping the sector, from exploration and production to refining and distribution.
As Nigeria transitions towards cleaner energy and gas utilization, these companies must adapt to global energy trends while ensuring sustainability. Investments in gas infrastructure, renewable energy, and refining capacity will determine the future of Nigeria’s oil and gas industry in the coming decades.
For businesses and individuals looking to invest in Nigeria’s energy sector, these companies represent the best opportunities for long-term growth and sustainability.
