The Three Core Sectors
1. Upstream
Exploration & Production (E&P)
The high-risk, high-reward search for and extraction of crude oil and natural gas from deep within the earth.
- ▪Exploration: Using seismic surveys to find deposits.
- ▪Drilling: Onshore and offshore wells to access reserves.
- ▪Production: Bringing raw hydrocarbons to the surface.
2. Midstream
Transport & Storage
The crucial link that moves and stores raw resources, connecting production sites to processing facilities.
- ▪Transportation: Pipelines, tankers, and FPSO vessels.
- ▪Storage: Tank farms and facilities for Liquefied Natural Gas (LNG).
- ▪Processing: Removing impurities from raw natural gas.
3. Downstream
Refining & Retail
The final stage where crude oil is refined into finished products and sold to consumers and industries.
- ▪Refining: Turning crude into gasoline, diesel, and more.
- ▪Marketing: The wholesale selling of petroleum products.
- ▪Distribution: Delivering fuel to gas stations and LPG to homes.
Who Runs the Show?
The Major Players in Nigeria's Oil & Gas Sector
The industry is a mix of state, international, and local entities. Recently, many International Oil Companies (IOCs) have been selling their onshore assets to Nigerian indigenous companies, shifting the operational landscape.
The Rule Makers
The Petroleum Industry Act (PIA) of 2021 reshaped the industry's governance, creating clear regulatory bodies for each sector to improve transparency and attract investment.
NUPRC
Regulates the Upstream sector (exploration & production).
NMDPRA
Regulates Midstream & Downstream (transport, refining, retail).
NCDMB
Promotes Local Content across all sectors to build domestic capacity.