The Consulate General of Nigeria - New York


Crude Oil Marketing

Requirements for Marketing Crude Oil

Prospective customers who wishes to buy and sell Nigerian crude oil must demonstrate commitment to the oil industry through allocation of adequate resources of capital, equipment and manpower to the general business of prospecting, exploration and production of crude oil.

Those Eligible to Apply

An upstream investor who has acquired an Oil Prospecting License (OPL) and must have completed a minimum amount of work on the concession

Who May Apply for Crude Oil License

  • Local Refineries
  • International Refineries
  • Reputable Oil & Gas Traders

Who May Purchase Nigerian Crude Oil

A bonafide end user who owns a refinery and sales outlet.

An established large volume trader with proof of global network, operations and volumes of crude oil handled in the last three years.

Other Conditions

All applicants must have a minimum annual turnover of at least $500million and a net worth of not less than $250 million.

Successful applicants must show commitment to the development of the Nigerian economy by investing in any number of opportunities that abound in the oil gas sector.

Successful companies will be required to post a $1 million performance bond through a first class Nigerian bank in addition to the regular crude oil contract provisions.

Upstream Opportunities

With proven oil and gas reserves of 32.5 billion barrels and 187 trillion cubic feet respectively, numerous investment opportunities abound in upstream operations of the Petroleum industry as categorised below: [Upstream Opportunities - On-shore business]

  • Surveying - tropical and planimetric; and sea bottom survey
  • Civil Works- mud pit construction, concrete works at rig sites
  • Seismic data acquisition and interpretation
  • Drilling operations
  • Pipelining
  • Crude oil transportation and storage
  • Exploration and production of oil and gas products
  • Manufacturing of consumable materials in exploration such as explosives, detonators, steel casting, magnetic tapes etc.
  • Search for development of local substitutes for items such as medium pressure valves, pumps, shallow drilling equipment, drilling mud, bits fittings, drilling cement etc.

Downstream Opportunities

Investment opportunities in the downstream sector include:

Domestic Production and Marketing of Liquefied Natural Gas (LPG).

Domestic Manufacturing of LPG cylinders, valves and regulators, installation of filling plants, retail distribution and development of simple, flexible and less expensive gas burners to encourage the use of gas instead of wood.

Establishment of processing plants and industries for the production of:

  • refined mineral oil, petroleum jelly and grease
  • bituminous based water / damp proof building materials e.g. roofing sheets, floor tiles, tarpaulin, and
  • building of asphalt storage, packaging and blending that may export these products.

Establishment of chemical industries e.g. distillation units for the production of Naphtha and other special boiling point solvents used in food processing.

Linear Alkyl Benzene, Carbon Black and Polypropylene producing industries.

Development of Phase II (Phase III to commence later) in Nigeria’s Petrochemical Programme.

The NLNG Projects.

Small-scale production of chemicals and solvents e.g. chlorinated methane, Formaldehyde, Acetylene etc. from natural gas.

Crude oil refining with efficient export facilities.

Companies with the technology can undertake turn around maintenance of refineries. There is a 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.

Products Transportation and Marketing Associated with products distribution and marketing is a chain of manufacturing and maintenance businesses e.g. Lubricating Oil reprocessing, LPG bottles and accessories, oil cans reconditioning etc.

Nigeria Gas

A lot of investment opportunities abound in the natural gas sector of the Nigerian petroleum industry. Increasing attention is now being given to this vital sector. Government's aspirations for the gas sector include creating new industries out of the old oil industry; capturing economic value and generating as much revenue from gas as from oil. Others are developing the domestic gas market and, ending gas flaring by 2030.

Nigeria Gas