Opportunities in the Oil and Gas Sector


  • Petroleum Exploration and Exploitation.
  • Search for development of local substitute for such items as Medium pressure valve, pumps, shallow drilling equipment, Drilling mud, bits fittings, drilling cements etc.
  • Manufacturing of consumable materials in exploration such as explosives, detonators, steel castings, magnetic tapes etc.
  • Other areas in the services sector of the upstream are:
    1. Construction and Installation
    2. Maintenance
    3. Pipelining
    4. Well Services and Transportation Support Services.


 Domestic Production and marketing of Liquefied Petroleum Gas (LPG)

(ii) Manufacturing of LPG cylinders, valves and regulators, installation of filing plants, Retail distribution and development of simple, flexible and much less expensive gas burner to encourage the use of gas instead of wood and other fuels.

(iii) Establishment of processing plants and industries for:

– The production of refined mineral oil, petroleum jelly and grease.

– The manufacture of bituminous based water/damp-proof building materials such as roofing sheets, floor tiles, rubber products, tarpaulin. Building of asphalt storage, packaging and blending plants to handle the product for export.

(iv) Establishment of chemical industries such as distillation units for the production of naphtha and other special boiling point solvents used in plant and other food processing industries.

(v) Establishment of industries for processing Linear Alkyl Benzene, Carbon Black and Polypropylene.

(vi) Development of Phase II (Phase III to join later) of Nigeria’s Petrochemical Programmed.

(vii) Participation in all phases of the Nigeria Gas Industry development programmed from exploration, gathering, production and processing to transmission.

(viii) Establishment of small scale industries to produce chemicals and Solvents, for example Chlorinated methane, Formaldehyde, Acetylene, etc., from natural gas.

(ix) Refining: One condition for purchasing Nigerian Crude Oil is the ownership of an efficient refinery. The shelter which the domestic petroleum products market enjoys, almost completely seals the prospects and viability of privately financed refinery for locally consumed petroleum products. However, opportunities exist for the construction of a refinery in bonded premises with adequate export facilities for dedication to the export market. Companies with the technological know-how can undertake turn-around maintenance of refineries. Refineries consume a lot of chemicals and utilize a broad range of spare parts. There is tremendous scope for small scale joint venture manufacturing concerns with foreign technical partners. Such ventures can start warehousing arrangements that will ensure continuity of supply at competitive prices. Other investment opportunities contingent upon refining and Ancillary activities are the manufacture of special products such as:

– Industrial and food grade solvents

– Insecticides

– Cosmetics

– Mineral Oil, petroleum jelly grease

– Bituminous-based water/damp-proof building materials such as floor tiles, rubber products, tarpaulin, etc., and

– Asphalt storage, packaging and blending plants to handle products for export and local use. Export of refined products surplus also exists as an opportunity in refining.

(x) Products Marketing: Petroleum Product Marketing would seem sealed with hardly any opportunity except by way of establishing an independent marketing outfit or aspiring to establish dealership with the marketers.

While indeed those opportunities remain viable, far more challenging opportunities may be explored in the areas of product transportation, by road and coastal tankers.

Associated with products distribution and marketing is a chain of manufacturing and maintenance business such as lubricating oil reprocessing, LPG bottles and accessories, oil cans reconditioning, etc.

The nations pipeline and depot network consists of 3,001km of pipeline of varying sizes as well as sixteen (16) storage depots. These pipelines and networks traverse the length and breath of the country. The system therefore must be maintained in a healthy state for effective and efficient distribution of products.