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Speaker 1: Hello there, welcome
to the World Cafe podcast.
This podcast has been designed
with created content that
centers on the power of words.
Can we really do anything
without speaking?
Can we really do anything
without the agency of words?
Yes, that is what this podcast
is all about, and I am your host
, amakri Isubie, your
neighborhood word trader.
I believe in the power of words
, for it is the unit of creation
.
I trade in words to profit my
world.
Hi, yes, something unique.
All right, I'm going to begin
this the way I normally do yeah,
good morning, good afternoon
and good everything wherever you
are.
Yes, welcome.
I usually say this.
You hear me say this on the
show to the World Cafe podcast,
so I want to do something
different today.
That's why I am in this, should
I say, element?
First of all, you know the way
I always say it how are you?
How are you doing?
Good, I'm good.
Yes, back home it started
raining.
Yeah, in Abuja it's been
raining practically every day,
so the weather is somewhat cool
now and I like it.
Yeah, I do.
Okay, you know this space is a
safe space.
We come in here to lean on one
another's experience and to
forge a positive path.
So lately I've been going over
something.
Yes, I stumbled upon it years
ago.
Yeah, it has to do about my
country, nigeria, and yes, I
said to myself it's time to
share it with you.
So I guess you're ready to hear
this.
It's a little bit about history
.
Yeah, history, I love history,
for obvious reasons.
A couple of times you've heard
me on this show talk about you
know, historical facts and all
of that.
Yes, and I'll be doing more of
reading.
It's a material I stumbled upon
, like I said, a while ago,
years ago, and I think it is the
right time to share it with you
.
All right, then, so it's going
to be a long ride, but don't
worry, you'll enjoy every bit of
it.
You know, picking all the
juices from here and there
Historical facts about Nigeria,
and so let's roll.
But before I do anything, I'm
going to read a piece.
I wrote this some days ago and
if you've been listening to my
thoughts, you would have come
across it.
You see, history has this funny
habit of repeating itself.
What happened once will happen
again, and what has been done
will be done again.
There's really nothing new
under the sun, just the same old
horn drum dressed up in
different clothes.
So that is that bit history Now
.
It's about oil exploration in
colonial Nigeria you heard me
from 1903 to 1958.
Thea Sten that's the name of
the guy that wrote I think I
want to believe it's a guy, but
it sounds like a feminine name.
Thea Sten, that's
P-H-I-A-S-T-E-Y-N.
Sten for the University of
Sterling.
That's it.
So I'm going to read and I want
you to follow me, and as I read
, there will be some moments of
break here and there.
Yes, just to like have you know
those moments and say one or
two things.
Then we go back and we all of
that moments and say one or two
things.
Then we go back and we all of
that.
Since ag hopkins called an
africanist in 1976 to return to
the study of imperial business,
both as an extension of european
and american business, american
business history and as an
important facet of european
colonial rule, a number of
studies have been published that
address aspects of imperial
business history.
An area that has remained
largely unexplored by
Africanists, however, is the
history of oil and exploration
in colonial Africa,
notwithstanding the extensive
oil exploration activities
during this period, this is not
only true of the history of
colonies with no known oil
deposits, such as Nyazanland I
hope I pronounced that correctly
where British Petroleum, for
example, spent £33,334 on a
futile search for oil between
1918 and 1928.
The history of oil exploration
in many of the African oil
producing and exporting states
seems to be remarkably brief.
Nigeria is no exception, and
the published oil historiography
includes no article or limiting
his focus to the relationship
between the Nigerian Butman
Corporation and the colonial
office between 1906 and 1914.
Njezi, on the other hand,
concentrated upon the case of
Captain Edward Aljanon Bennett
in 1907 and the development of
oil legislation in 1907, 1914
and 1916, and dealt with other
oil exploration activities
between 1906 and 1958.
So many dates right, rather
briefly.
Consequently, the accounts of
oil exploration in colonial
Nigeria are incomplete and leave
out more than they include.
Apart from these two authors,
no standard monograph on the
Nigerian oil industry has
attempted a detailed examination
of the exploration for oil
there before the 1950s.
This article aims to make a
contribution to Nigerian oil
historiography by focusing
exclusively on the exploration
for oil in the colonial era
between 1903 and 1958, when the
first shipment of Nigerian crude
oil arrived in Rotterdam.
It integrates for the first
time information in the archival
collections found in the
British National Archives, the
Nigerian National Archives, the
British Petroleum Archives, the
Shell Group Archives and the
private family archives of the
oil pioneer Frank Dreda,
supplemented by published
contemporary sources, in
particular the Times and the
West African Pilot.
The article suggests that,
despite the anxiety over
Britain's reliance on foreign
oil for most of the period, the
British government did very
little to encourage the
exploration of the oil
possibilities of Nigeria.
Consequently, the initiative to
start exploratory work in the
colony resided exclusively with
private British oil ventures
that set out to discover the
proverbial spindle top in
Nigeria between 1903 and 1914.
Small oil companies simply
lacked the financial and
technological resources to
successfully explore for oil in
the challenging Nigerian
environment.
And in the future only the
major oil companies would be
able to afford the huge
financial and technological
outlays that were required.
Even then, it will take the
shell slash d-a-r-c-y.
Yes, this will be coming on
this name shell slash
d-a-c-r-o-i.
You know I'll be calling it
frequently.
So uh, just let's tag along.
Joint ventures.
15 years and millions of pounds
before discovering commercially
exploitable oil resources in
Nigeria in 1956.
This dominance by the major oil
companies would remain a
characteristic of the Nigerian
oil industry until the 1990s.
Colonial oil exploration further
established two additional
trends that would characterize
the Nigerian oil industry in the
independent era.
Firstly, that oil was a
national priority for the
country, regardless of its local
impact.
Secondly, that the oil industry
from the outset formed an
enclave in the broader Nigerian
economy, with limited
interactions, beyond the
utilization of local labor,
between the general Nigerian
economy and emerging oil
industry.
Okay, we go to this now
Butamine and oil exploration.
In the early years 1903 to 1914
.
The onset of colonial rule in
Africa coincided with the
expansion of oil exploration in
many areas of the globe.
Although supply far outstripped
demand for crude at that stage,
Technological innovations such
as the development of the
internal combustion engine in
the 1890s, opened up new uses
for crude oil beyond its initial
use, mainly as an illuminating
fuel and lubricant.
These developments became
crucial when the market for
kerosene drastically declined
after the introduction of
natural gas as the main fuel for
illumination.
In 1914, kerosene constituted
only 24.9% of all refined crude
oil products, while petroleum
and fuel oil made up 63.7%.
The latter figure greatly
increased in the decades that
followed, as motor cars, oil
burning steam, locomotives I beg
your pardon oil fired
industries and oil based naval
and merchant vessels became more
popular.
The advent of the global oil
industry placed Britain in a
rather precarious position.
It only had a small indigenous
shale oil industry based in
Scotland, which could not meet
the demands for refined oil
products in the country.
Consequently, british needs had
to be met by foreign oil
supplies, which had to be
transported over long distances
at sea.
The dependence on foreign oil
supplies was especially
problematic for the Admiralty,
who told with the idea of
switching the Royal Navy vessels
from coal to oil burning for
many years prior to 1912, when
Winston Churchill, in his
capacity as First Lord of the
Admiralty, committed the Royal
Navy permanently to oil.
Admiralty's interest in fuel
oil in the first decade of the
20th century had two important
repercussions.
Firstly, it meant that they
took the lead in the development
of an oil policy for Britain,
which process began in 1904 when
the decision was taken to limit
oil concessions in British
colonies to British controlled
companies.
Secondly, it created interest
in the oil possibilities of the
vast unexplored regions of the
British Empire.
Though this empire stretched to
all corners of the world at the
turn of the century, oil was
only produced in Burma and
Canada by 1900, comprising a
mere 1.2% of global production.
This increased marginally to
3.8% by 1914, with oil being
produced in India, including
Burma, trinidad, canada, egypt
and Brunei.
The search for a secure supply
of oil within the British Empire
resulted in the investigation
of the oil possibilities of many
African colonies, especially
along the West Coast, where it
was known that the Atlantic
Ocean often washed pieces of
butamine onshore and where oil
seepages occurred over a wide
area.
While Standard Oil and the
Shell Transport and Trading
Company played important roles
in expanding the oil industry in
Europe and the Far East, global
exploration in the period
leading up to the First World
War was largely driven by
smaller oil companies, in
particular from the United
States and Britain, with varying
degrees of success.
The promise of vast returns on
investment captured the
imagination of British investors
, british investors and
attracted substantial British
investment abroad, which
amounted to over £14.3 million
by 1907, increasing over
registered in Britain by 1912,
which were involved in either
downstream or upstream
oil-related activities.
Many of these companies were
small speculative ventures which
set out to discover the next
spindle top in Eastern Europe
and the colonial world, with
dismal results.
The first companies to explore
for oil in colonial Nigeria
emerged from this section of the
British oil industry, which
controlled the first phase of
oil exploration in the colony,
lasting from 1903 to about 1914.
The search for oil in Nigeria
officially started in 1903 when
two companies, nigerian
Properties Limited and the
Nigeria and West African
Development Syndicate Limited
commenced exploration for
bitumen, coal and oil.
Their two concessions covered
the territory of 400 square
miles in the Agabu-Mulakambo
area in the Leki Lagoon region
of southern Nigeria.
I hope I pronounced that well
to 1904 and 1904 to 5, and AH
Harrison, 1904 to 5, confirmed
the existence of vast bitumen
deposits as well as the
possibility of petroleum.
They reported on their findings
, noting that, I quote
notwithstanding the shallow
depth at which the deposits
occur and the tropical heat of
the territory, the butyminous
deposits so far located are in a
plastic condition.
This seems to show that there
is still a flow of liquid from
the original source and gives
the expectation that oil exists
in considerable quantity.
End quote.
The activities of Nigerian
properties, the Nigerian and
West African Development
Syndicate and a third concession
holder, the Northern Nigerian
Exploration Syndicate, were very
limited.
This changed after 1905, when
the British businessman John
Simon Begham became interested
in the oil possibilities of the
colony.
Begham had extensive experience
in the European oil industry,
in particular in Galicia and
Romania, and was also the
co-founder and co-owner of the
Galizic that's a big word
Carpathen Petroleum,
antigesishat forgive me, that
sounds like an Eastern meme.
He became interested in Nigeria
in 1905, at a time when the
vast majority of British oil
investments were made in Eastern
Europe and the Americas and
established the first oil
company that would undertake a
serious exploration for butamine
and crude oil in southern
Nigeria.
The Nigerian Boothman
Corporation was founded in
November 1905 with the aim to
acquire and work the exploration
concessions of Nigeria
properties and the Nigerian and
West African Development
Syndicate Don't forget, those
are two companies.
The concessionary area was
expanded in November of 1906
when the company bought the
concession of the Northern
Nigerian Syndicate which was
situated adjacent to that of the
Nigerian Bootmen in the
Lekilagun area and many other
authors.
Nigeria Bootman was not a
German company.
It was a British registered
company and its shares were
traded on the West African
market of the Stock Exchange in
London.
Like many other smaller British
oil companies prior to 1914,
begum actively worked toward
establishing closer cooperation
between the British government
and Nigerian Butmin.
His request for state financial
assistance in 1906 was not out
of the ordinary.
Indeed Jones notes several
requests from the oil companies
for financial assistance from
the state, such as the request
for a government loan of £10,000
made by the West Indian
Petroleum Company in 1903.
These requests increased
greatly after the failure of
many British oil investments in
MyCorp in Russia made money
markets less enthusiastic about
the funding of the speculative
oil ventures.
After 1910, in return for
government financial assistance,
many oil companies offered the
admiralty the right of
preemption, which would have
ensured a secure outlet for any
oil that the companies might
find.
They were also not averse to
offering the British government
stakes in the companies because,
as Jones points out, government
governmental involvement would
ensure financial assistance
protection in foreign countries
in the form of diplomatic
support and sought after naval
fuel oil contracts.
The British government, however
, was not only reluctant to
grant requests for financial
assistance, but was further
unwilling to become directly
involved in the British oil
company, regardless of the
attractiveness of the offer.
This state of affairs would
only change in 1914 when the
government at the origin of the
Admiralty became a majority
stakeholder in the Anglo-Persian
Oil Company, later renamed the
British Petroleum Company, with
51% of the shares.
In 1906, berghem entered into
lengthy discussions with the
Admiralty and the Colonial
Office in an attempt to secure
governmental financial
assistance to explore the oil in
southern Nigeria.
The British government only
approved the loan of £25,000
towards the end of 1907, and the
first installment was paid in
February of 1908.
Begum's success in securing the
loan was in no small part due
to his own persistent nature and
the fact that his request was
enthusiastically supported by
the Governor of Southern Nigeria
, sir Walter Egerton.
According to Calland, egerton
held strong views on the role of
the government in economic
development and believed
southern Nigeria would only
develop economically with the
financial assistance from the
colonial government.
To this end, he embarked on the
development projects that
greatly improved the
infrastructure, encouraged the
exploitation of non-mineral
resources and sought expansion
of existing agricultural exports
and the development of new
agricultural exports.
It was within this context that
he supported the granting of
the loan to Nigerian Butamine,
though it is clear from the
consulted sources that oil did
not figure in this development
planning for the colony.
Oil of commercial quantity and
quality had to be discovered
first before the colonial
government would start to factor
this sector into their
development plans for Nigeria.
Nigeria Butchman's operations
commenced in 1906 under the
guidance of their manager, frank
Dreda.
He was a Canadian of German
descent with practical oil
experience in Canada and Galicia
, from where most of the crew
also came, in Canada and Galicia
, from where most of the crew
also came.
Its operation had an enormous
impact on the local environment
in Lekki, lagoon, as vast tracts
of land were cleared to make
room for houses, a tramway and a
drilling site, not to mention
the pollution that resulted from
the oil discoveries and
spillages.
This site also served as the
company's headquarters in
Nigeria and it had limited
involvement in the colony beyond
the utilization of local labor.
It originally intended to
search for both butamine and
crude oil, but the search for
oil became their main focus from
1908 onwards.
Between 1908 and 1912, nigeria
Butamine drilled about 15 wells
in their Lekki Lagoon concession
Under the supervision of A Mr
Van Sickle.
Oil was struck in November 1908
at well number five, which was
drilled with their new oil rig
purchased with their government
loan.
As Dreda explained in a letter
to his wife on 24th September
1909, however, well number five
did not turn into the
anticipated active oil field and
had a significant environmental
impact.
We got I quote, we got well
number five on oil again and it
started to flow at the rate of
about 2,000 barrels per day.
But after it had flowed a few
hours at this rate it came on
hot.
It came on hot water and we are
only getting about 50 barrels
of oil from it now.
I expect there was great
excitement in london when they
got the news that sugo was
flowing that's the name of the
site, sugu was flowing so much
oil.
The lagoon is at present all
covered with oil and there was
so much oil at our wharf here
that the doctor got all covered
last night when he went in
swimming, which he does every
evening.
End of quote.
The company's most successful
discovery was from well number
12, which yielded oil of a good
quality without gas, and which
was described by the foremost
petroleum expert in Britain, sir
Boverton Redwood, as by far the
most important event which has
occurred during the company's
operations.
Redwood's favorable report
helped increase the value of
Nigeria Bootman shares in 1911,
when the company ultimately
proved unable to exploit its
findings profitably.
They struggled in particular
with water intrusion and did not
possess the necessary equipment
to separate out the water that
flowed continuously into some of
its most promising wells.
In addition, they found the
Nigerian environment challenging
, with their lurky lagoon
concessions often inundated with
water during the rainy season.
They were also limited in their
choice of drilling sites by the
swampy nature of the terrain
and the lack of infrastructure,
and found the local communities
unwilling to share information
on the location of the most
promising Butumene outcrops.
Financial difficulties impeded
the expansion of exploratory
work and by July of 1912,
nigeria Butumene had only enough
capital to continue its
operations for another six
months.
Begham consequently appealed to
the Colonial Office for another
loan but died shortly
thereafter, in December 1912, in
an automobile accident.
Despite the support of the
Admiralty, the loan was not
approved mainly because of three
factors.
Firstly, begum's death meant
that the crucial link between
Nigeria Butmin and the Colonial
Office was removed and the
company simply had no other
proponent of Begum's caliber and
persistence.
Secondly, in the departure of
Governor Egerton, replaced in
1912 by Sir Frederick Lugard,
nigeria Butmean lost another of
its most enthusiastic supporters
and the only person who could
convince the rather high-fisted
officials in the colonial office
to approve the loan.
Egerton had been rewarded by
the colonial office for his
development work in southern
Nigeria by being demoted to the
post of governor of British
Guiana.
Thirdly, as mentioned above,
the failure of most British oil
investment in Russia made not
only the money markets but also
the British government very long
time to invest in speculative
oil venture after 1910, due to a
lack of capital, due to a lack
of capital.
Nigerian with me sees all
operations in Nigeria by the end
of 1913 and the company was
liquidated in 1914.
It was its liquidation rather
than the outbreak of World War I
.
As Njezi Afrinas argued, that
led to the termination of the
activities of Nigerian Butmin in
the colony.
Nigerian Butmin was not the
only company to explore for oil
in Nigeria before 1914, although
its competitors were very less
successful and less is known of
their operations.
Colonial office correspondence
with the Southern Nigerian
government lists inquiries about
oil exploration licenses
received from the British
Colonial Petroleum Corporation
Limited.
Captain Edward Algaron Bannet
and Rose One Limited.
Njezi discuss the case of
Bannet in detail, calling it
rather dramatically a protracted
and disgusting incident of oil
concession and tussle.
Bennett was an oil speculator
who, despite paying a deposit
and rent on an oil concession
covering about 100 square miles
in southern Nigeria in 1907, was
never granted a concession by
the colonial government.
These minor details did not
stop Bennett from attempting to
sell his concession in Britain
at an inflated price, which in
turn incurred the wrath of the
southern Nigerian government,
the colonial office and Nigerian
bootment.
Bennett's activities ensured
that the colonial government
included measures to discourage
oil speculation in the colony in
its 1907 Mining Regulation Oil
Ordinance.
This affair did not adversely
affect the relationship between
Barnett and the colonial office,
whose officials were of the
opinion that future applications
from Barnett would receive very
sympathetic consideration.
In the end, only the British
Colonial Petroleum Corporation
proceeded in searching for oil
in the colony.
The company was incorporated in
London in December of 1908 and
emerged out of the Nigerian
Investment Company, which had
been granted an oil exploration
license over an area of 225
square miles in southern Nigeria
in January of 1906.
The Nigerian Investment company
started exploratory and
development work in its
concession in October of 1906
under the supervision of Bernard
A Collins.
In this process, 13 shallow
boreholes with an average depth
of 100 feet were sunk in order
to prove whether the oil line
was satisfactory.
In each case, the drill passed
through or finished in oil sand.
Collins' positive findings led
to the creation of the British
Colonial Petroleum Corporation,
which was taxed with the
exploring for oil in the
Nigerian investment company
concession.
Both the board of the new
corporation and their financial
arrangements clearly illustrated
the close relationship among
the many small British oil
companies, in particular those
with West African interests.
Its first chairman until
December of 1908 was Bergman
from Nigerian Bhutmin, while
George Wellington Statham, the
director of the Nigerian
Investment Company, was
appointed a director.
Statham, along with the former
chairman of the Nigerian
Investment Company, were also on
the board of the.
This is a long French word.
Société François de Petrole I
hope I got it correctly limited,
incorporated in London in
February of 1907 to explore the
Tano Lagoon region in the Ivory
Coast, a company chaired by
Begum of Nigerian Boutmine, of
Nigerian butamine.
The Nigerian investment company
in turn held a considerable
share in the Société François de
Petrole, as it did in the Gold
Coast Oil and Butamine
Corporation Limited, floated in
London in December of 1908 to
search for oil in the Apollonia
district.
According to its chairman, hj
Brown, the Nigerian investment
company had in 1907 a
shareholding in every company
that explored for oil and boot
men in West Africa.
In many of these companies they
cooperated in one way or
another with the Nigerian
Bootmen Corporation.
The latter also became involved
in the newly incorporated
British Colonial Petroleum
Corporation through a financial
and operational agreement in
which Nigerian Bootmen was
contracted to act as agents and
managers for the new company for
a period of two years.
As compensation, nigeria
Bootman received shares and 10%
of the net profits.
The Nigerian investment company
provided British Colonial
Petroleum with a cash capital of
£35,000 to explore for oil in
his concession situated in the
Benin district close to the
Benin River and the coast.
Under the direction of its oil
engineer, dp Brown.
The company explored
unsuccessfully for oil for four
years.
In its last operating year in
Nigeria, 1913, the company spent
just over £5,052 before seizing
operations in the colony
focused exclusively on its
Romanian concession in a joint
venture with Sphinx Petroleum
Company Limited.
In 1924, the company went into
voluntary liquidation and was
finally wound up in 1930.
Even though Nigerian Butmin
never managed to set up
commercial oil operations in
Nigeria, its chairman Begham
made a lasting contribution to
the colonial oil industry
through its involvement in the
development of bigger pattern of
oil legislation.
From the start, begum
maintained that the general
mining legislation was not
adequate to regulate the oil
industry.
Consequently, he lobbied the
Colonial Office and Southern
Nigerian Government for the
development of specific oil
regulations modeled mostly on
the Trinidad oil mining law, the
Southern Nigerian Mining
Regulation.
Oil Ordinance of 1907 was
drafted by Frederick Butler and
Charles Stachy, clerks in the
Nigerian department in the
colonial office and unnamed
governmental legal advisor.
In line with General British
Oil Policy which determined in
1904 that oil exploration
concessions in British Empire
should preferably only be
granted to companies registered
in Britain or its colonies, a
1907 ordinance made the search
for oil in Nigeria a British
monopoly.
Section 15 of the ordinance
further specified that all
members of the directorate of
these companies be British
subjects.
This principle was retained in
the 1914 Mineral Oils Ordinance,
which applied to all areas in
the newly amalgamated Nigeria,
and its 1925, 1950, and 1958
amendments.
These versions, however,
allowed for the inclusion of the
non-British directors, provided
that the director, the
chairperson and the majority of
other directors were British
subjects.
It's getting more interesting,
isn't it?
Directors were British subjects
.
It's getting more interesting,
isn't it?
Section 7, sub 2 of the 19-.
Section 2, I beg your pardon of
the 1907 ordinance also limited
the size of concessions to 500
square miles, which was
considerably larger than the
five square miles that was
considered early in the drafting
process.
While the colonial government
strictly enforced this limit,
the whole Section 7 was omitted
from the 1914 ordinance because
the colonial government felt
that the discovery of oil by
Nigerian putmen had rendered
this clause a dead letter.
In future, the colonial
government would only enforce
rule one of shallow two of the
1907 ordinance, which stipulated
that applicants must provide
full details on the size,
location and boundaries of the
concessionary area in their
applications.
The 1907 ordinance was drafted
without consultation with the
legation, the legation eli
elitist and native native
authorities.
The unofficial africa members
of the legislative council found
section 5 of the new ordinance
unacceptable because it gave the
governor the right to enter
into agreements with native
authorities over the purchase of
both surface and subsurface
mineral rights on their lands
without the payment of the
royalties on oil.
One of the unofficial members
of the Legislative Council, cs
Sapara-Williams, proposed an
amendment on Section 5 during
the discussion of the ordinance
in the Council, suggesting the
session be expanded to guarantee
Native authorities a fair and
reasonable proportion of the
royalties received from the
mineral oils obtained from their
land.
This proposed amendment was
supported by all the unofficial
African members of the council
but was rejected by the official
members and the governor, who
held the majority of votes.
The Lagos standard commented on
this ordinance and the
rejection of the amendment that
I quote.
If the ordinance becomes law,
or rather when it does become
law, it will give to the
government and the European
prospector the kennel of the oil
mining business, leaving to the
native the shell, in other
words, business leaving to the
native the shell, in other words
, giving him the doubtful
privilege of working to enrich
the white man.
By 1914, no commercial
corporation was actively
searching for oil in the colony,
even the Mineral Survey of
Southern Nigeria, which was
established in 1903 to explore
for and collect minerals in the
region with the aim of finding
commercially viable resources,
showed limited interest in the
oil possibilities of the colony.
During the course of their work
in 1913, the Mineral Survey did
find traces of oil at Abagana,
13 miles east of Onitsha in the
Oka district.
The survey was at that time,
however, focused on developing
the black bituminous coal
deposits that were discovered in
1909 along the Enugu Udi
encampment.
It is clear from their reports
that the Mineral Survey opted at
an early stage to leave oil
exploration to the private oil
companies, preferring instead to
frequently visit and inspect
the exploration sites of the
various companies that operated
in Nigeria between 1903 and 1914
, and to cooperate closely with
these companies through the
sharing of scientific and
geological information and
specimens.
This trend would continue after
the Geological Survey of
Nigeria was established in 1919,
and none of its annual reports,
bulletins or, occasionally,
papers makes any reference to
the Geological Survey being
actively involved in any oil
exploration activities
throughout the colonial era.
It therefore seems that the
traces of oil discovered by the
Mineral Survey in 1914 and the
Geological Survey in 1928 were
incidental to the real focus of
their investigations and were
consequently not acted upon.
Real oil exploration in
colonial Nigeria was left to be
conducted by oil companies.
Revival of interest 1918 to
1923.
The central role played by
refined crude oil products in
the world war one ensured the
massive expansion of the global
oil industry after the war.
As oil companies sought to
increase the global supply of
oil to meet shortfalls
experienced immediately after
the war and to prepare for the
projected explosion in the
demand for crude oil products in
the years ahead, the search for
oil in the British Empire was
prioritized by the British
government in their quest to
lessen the country's dependence
on American oil, which supplied
around 80% of Britain's total
crude oil needs by the end of
World War I.
At that stage, imperial oil
production only made up 2.5% of
global production, and these
increased to 1.6% by 1927, of
which only estimated one-tenth
reached the British home market.
Despite Britain's anxiety over
the dependence on foreign oil
supplies, the government did
very little to promote the
actual exploration for oil in
the empire and offered no
special subsidies or inducements
to oil companies if they
undertook oil exploration in the
colonies.
In addition, the British
government continued to exclude
non-British oil companies from
empire oil, despite regular
demands made by the American
government that the British open
up their colonies to oil
companies that were wholly owned
and controlled by American
interests.
Against this backdrop, the the
key problem for the British
government was to convince
British oil concerns to take up
oil exploration in the empire.
Only two companies were
interested in the oil
possibilities of Nigeria in the
post-1918 period, namely the
DARCY Exploration Corporation
and the Whitehall Petroleum
Corporation.
Exploration Corporation and the
Whitehall Petroleum Corporation
.
For both the Nigerian
operations formed part of
deliberate attempts to expand
their operations to other parts
of the world, and it was
undertaken more in the hope than
belief that commercially
exploitable oil resource would
be found in the colony.
The operations would not last
long and by 1923 both companies
gave up on their hopes of
finding oil in Nigeria, thereby
ending the very short second
phase in the search for oil in
the colony and consequently
strengthening their view that
the challenging Nigerian
environment compromised the
search for oil resources, if
indeed they existed.
The DARCY Exploration Company, a
wholly owned subsidiary of the
Anglo-Persian Oil Company,
became interested in Nigeria in
1918.
And as part of a wider strategy
by the company to extend their
interests beyond Persia,
according to Ferrier, the
chairman of Anglo-Persian, sir
Walter Greenway, was determined
to develop its company in such a
way that it would compete with
Royal Dutch Shell and Standard
Oil, those two big names.
Shell and Standard Oil, those
two big names.
The massive expansion of the
company's concessionary
interests formed an integral
part of Greenway's plans, and
these interests took the company
to areas such as Kuwait,
colombia, venezuela, papua, new
Brunswick in Canada, the Gold
Coast, nigeria, borneo and Timor
.
In most of these regions, the
Anglo-Persian relinquished its
concession in the 1920s, mainly
because of unsatisfactory
geological evidence, but also
because of unacceptable terms
and conditions imposed by some
host government.
After John Cadman, greenway's
successor as chairman, in 1927,
formed the field refinery and
geological department in 1922,
the company became more
discerning in choosing its
concession around the globe and
now had the necessary geological
expertise to make more informed
decisions.
It is in this context that
Greenway approached the Crown
agents and the Nigerian colonial
government on behalf of the
DARCY explorationRCY Exploration
Company in January of 1918 with
the aim of obtaining an oil
exploration license.
Showing good business sense,
fred G Watson from DARCY pointed
out in his correspondence with
the crown agent that the company
would have no objections to
providing oil that conformed to
the latest admiralty
specifications.
The arocy's exploration license
was granted after protected
negotiations on 28 February 1921
and cover the area expanding
from the border with Dahomey,
that's in Benin, benin Republic,
now in the west, to the Niger
River, at the Akasa mouth in the
east, extending 50 miles inland
from the sea D-A-R-O-C-Y choice
of concession.
By the way, akasa is in Nigeria
, just to portray that brass, to
be precise, southern Nigeria.
Darcy's choice of concession
area was directly influenced by
Nigeria Bootman's oil
discoveries in previous years
and has obtained detailed
information on its concession
from Mr Van Sickle who had
headed Nigeria boot men's
drilling operations.
Limited documentary evidence was
found of DARCY oil exploration
activities in the sources
consulted.
Two men from DARC visited the
region in March of 1922 to
explore for oil, while the
company also contacted Dr JD
Falcone, the director of the
geological survey, in 1923 to
request that he undertake
geological investigations on its
behalf.
These requests came too late in
the dry seasons to allow for
geological work during 1923.
A company publication claimed
in 1970 that the team embarked
upon extensive reconnaissance
work and geological survey which
by oil industry standard was
said to be tough and arduous.
This claim is rather excessive
since DARCY spent only £1,290
exploring for oil in the
Nigerian concession.
In Africa alone.
The company spent more money on
oil exploration in Niazi land,
that is, 33,334 pounds,
somaliland 6,935 pounds, the
Sudan 2,265 pounds, southwest
Africa 2,056 pounds and Uganda
1,761 pounds Between 1918 and
1923.
Beyond 1923, no reference is
made to DARCY and it is
therefore assumed that it
allowed its exploration license
to lapse when it came up for
renewal in February of 1924.
Whether this action was
influenced by the views of the
well-known British geologist EH
Coneyhan-Greig's advisor's
opinion in November 1922 is open
to debate.
Greig declared to the company's
chief geologist that the report
on southern Nigeria adds
nothing to what I knew in 1906.
It is not worth spending an
other cent on the concession.
By the time Whitehall Petroleum
Corporation had also given up
all hope of finding oil of
commercial quantities in Nigeria
.
Hope of finding oil of
commercial quantities in Nigeria
.
Whitehall formed part of Lord
Cowdray's companies S Pearson
and Son.
That also included the
successful Mexican oil company
El Agula, and the United States
incorporated Amereda Petroleum
Corporation.
El Agula was sold to Royal
Dutch Shell in 1919, generating
profits that enabled Whitehall
to widen the geological scope of
its exploration activities to
include India, argentina,
bolivia and Nigeria and to
expand its exploratory work in
Algeria and Trinidad.
Whitehall became interested in
Nigeria in 1920 and approached
the Crown agents about an oil
exploration license on 8 June.
An exploration concession was
granted on 13 June 1921 and
covered the territory from the
boundary of British Cameroons in
the east to the Niger River at
the Akasa mouth in the west,
stretching from the shoreline to
the seventh degree of the
northern latitude.
Whitehall's geological party,
headed by LD Berlin, spent much
of 1921 investigating the
concession.
After submitting their report,
whitehall's board decided to
relinquish all their rights
under the concession in March of
1922 because the conditions did
not justify test drilling.
Shell DAROC in colonial Nigeria
1936 to 1958, is getting more
interesting now.
So the DARCY Exploration Company
revived their interest in
Nigeria in the 1930s, which
started the third and final
phase of oil exploration in
colonial Nigeria.
This interest ran against a
wider trend observed by Bambeg,
who claims that the
Anglo-Iranian oil company was
less interested in pursuing
concessionary interests outside
the Middle East and South
America in the 1930s than it was
in the 1920s.
In his view, this was mainly
due to the size of the Iranian
oil deposits and the fact that
there was excess productive
capacity on a global level
during the decade.
The AROCY's renewed interest
was sparked by a promising
report written by one of their
geologists, bkn Wiley, in 1933,
which once again focused
attention on the widespread
occurrence of oil and bitumen
seepages along the Nigerian
coastline.
These and subsequent geological
reports persuaded DCY to return
to Nigeria, even though the
company's geologist had to admit
that most oil indications along
the West Coast consisted of
so-called dead oil, that is,
bituminous sand viscous oil and
peach lakes, limos, sand viscous
oil and peach lakes.
This time, darcy did not go into
Nigeria alone, but did so in
partnership with Royal Dutch
Shell, hereafter called Shell.
It is unclear why DARCY opted
for a joint venture with Shell.
By the mid-1930s, shell and
Anglo-Iranian were already
cooperating in marketing
petroleum products in the Middle
East and Africa through their
co-owned Consolidated Petroleum
Company, created in 1928.
They also merged their British
marketing subsidiaries in the
early 1930s and agreed on a
joint venture in exploring for
oil in New Zealand in 1938.
In the absence of documentary
evidence, a plausible
explanation for DARCY and
Shell's decision to cooperate in
Nigeria in the 1930s might be
found in the British Control
Clause of the colony's Min oil
ordinance, which barred
Dutch-controlled Shell from
exploring for oil in the colony.
The plausibility of this
suggestion is strengthened by
correspondence between DARCY and
the Colonial Office, in which
the latter advised DARCY to
delay applying for an oil
exploration license until 1938,.
According to the Colonial
Office, the government was in
the process of changing the
model mining licenses and leases
to reflect announcements made
in Parliament in June of 1936
that foreigners and
foreign-controlled companies
would be allowed to operate in
the colonial empire from 1938
onwards.
It was pointed out that should
DARCY choose to apply before
these new regulations were in
place, then the company would
have to conform to the British
Controlled Clause in existing
mineral oil regulations.
In the end, however, this
clause was not removed from the
Nigerian Mineral Oil Ordinance,
which in turn created problems
for the joint venture in 1948,
when the Directorate of the
Shell Overseas Exploration
Company had a majority Dutch
membership.
Consequently, the company was
forced to change the composition
of its directorate to satisfy
the British Control Clause in
the Nigerian legislation.
On 10 August 1936, a joint
application was submitted to the
Colonial Office in the names of
the Anglo-Iranian Oil Company
and the Anglo-Saxon Petroleum
Companies, a wholly owned
subsidiary of the Royal Dutch
Shell Group of Companies, for
exclusive permission to explore
for oil over the whole of
Nigeria, kenya and Tanganyika
Tanganyika, I think, presently
is Tanzania.
In Nigeria, a complication
arose in the form of major
seabourn markets who submitted
an oil exploration application
in May of 1936.
Max had applied that's the name
of the company.
Max had applied for an oil
exploration license in 1931 for
an area covering about 30,000
square miles in southern Nigeria
.
After the colonial government
informed him of the conditions
under which they were prepared
to grant the concession, he
opted not to pursue the
application.
His 1936 application covered
much of the same territory as
the original application and was
turned down by the colonial
office In favor of that
Anglo-Saxon DARCY, which the
colonial office believed would
take its oil exploration
activities more seriously and
who were more likely to succeed.
In December of 1936, the
colonial office informed
Anglo-Saxon D-A-R-C-Y of their
decision to grant the joint
venture an exclusive exploration
license covering the whole
mainland of nigeria.
This license was issued in 1937
and the december 1937 the same
anglo-saxon petroleum company
was replaced by that of the
shell overseas exploration
company.
Limited on the official license,
shell D-A-R-O-C-Y started
geological survey in early 1937
under the direction of Dr Evan,
the head of their geological
party, and a Dr Carr, a
geophysicist, from their
headquarters in Enugu.
Geological and geophysical
surveys were carried out in
southern Nigeria around Enugu,
othakot, nsukka, okiwe, afiko
encampments, along the Niger and
cross rivers and over Benin
City and Focados.
Geological core drillings were
also undertaken, starting near
Uge Eme in June.
Uge Eme is the name of a place,
in June of 1938.
By the end of 1939, shell
D-A-R-O-C-Y had spent about
£70,000 exploring for oil in
Nigeria.
Their exploration activities in
Kenya and Tangayika, on the
other hand, had proven
unsuccessful.
Kenya and Tanganyika, on the
other hand, had proven
unsuccessful, and the joint
venture suspended work in these
colonies to focus exclusively on
Nigeria.
The outbreak of the Second
World War complicated matters.
At the urging of the Petroleum
Department of the British
Ministry of Fuel and Power,
geological and geophysical and
topographical survey work was
continued in 1940, costing the
joint venture a total of £72,303
.
By 1941, however, it no longer
seemed feasible to continue with
oil exploration in Nigeria, and
in February of 1941, the
colonial office informed the
companies that the governor of
Nigeria had agreed to the
suspension of operations.
Shell D-A-R-C-Y resumed its
Nigerian operations only in 1946
, owing to the difficulty of
obtaining suitable staff and
equipment in the immediate
aftermath of the war.
Their initial exploratory work
had showed that the most
favorable oil yielding
structures lay in eastern
Nigeria, where they started work
in 1946 in the Oweri, okigwe
and Oumuahea regions.
Two large camps were developed
on crown land at Oweri and
Okigwe after the war, which were
connected with exploration
sites by helicopters.
The Oweri camp in particular
expanded very quickly and
developed into the operational
headquarters of Shell DARC and
remained so until the
headquarters were moved to Port
Harcourt in 1961.
For those of you who live in
Port Harcourt you know that
place.
Oil exploration in the
post-World War II era took place
within the context of Britain's
post-war recovery, an attempt
to strengthen the generally weak
sterling against the American
dollar and the commencement of
development projects in the
British colonies after the
passing of the 1945 Colonial
Development and Welfare Act.
Oil exports from Nigeria did
not feature in the British
government's plans to increase
exports from the colonies in
order to earn much-needed
dollars.
Nor did it feature in the 1946
Nigerian 10-Year Plan for
Development and its 1951
revisions.
This was because oil of
commercial quality and quantity
had not yet been discovered in
Nigeria.
Nigeria.
Consequently, like previous
administrations, the post-war
Nigerian colonial government
could not make any definite
development plans within the oil
sector, nor plan any
expenditure based on expected
oil reserves.
While the emerging oil industry
did not make it onto the
colonial government's official
development agenda, shell the
arcy did receive greater support
from the nigerian government
than any oil company had in the
pre-1945 period.
This support found expression
in the charging of very low fees
for temporary occupation
license, such as the initial $1
per annum fee.
Hear that again.
$1 per annum fee charged for
the leasing of 175,000 square
yards on crown land in Okigwe in
1948, which increased to £5.
Did I say $1?
I meant £1.
£5 per acre in 1949.
And in making available more
land in Oweri for the company as
its operations expanded.
More importantly, the
government openly supported
joint venture and its
exploration activities in the
face of strong local opposition
in some districts at the end of
the 1940s.
The open support for Shell DARC
by the colonial government
should not only be viewed within
the narrow confines of
governmental support for
economic development, but also
within the context of Nigerian
decolonization and the conflict
between the Nigerian
administration and the
well-organized nationalist
movement in eastern Nigeria, led
by Dr Nnamdi Azikewe and the
National Council for Nigeria and
the Cameroons NCNC.
As was the case in many African
colonies, world War II greatly
influenced the Nigerian
nationalist movement and after
the war, azikiwe and the NCNC
became vocal opponents of most
of the initiatives implemented
by the unpopular governor, sir
Arthur Richards.
The passing of the so-called
obnoxious ordinances in 1945 was
no exception, and Ezekiel and
the NCNC rallied popular support
in much of southern Nigeria in
opposition to these ordinances.
One of these was the Mineral
Ordinance, which restated the
claim that mineral rights were
vested in the crown.
According to Coleman, the
nationalist movement interpreted
this to mean the confiscation
of Nigeria's minerals by the
British government, along with
their land, through two other
obnoxious ordinances.
These ordinances translated
into renewed control by the
British government at a time
when nationalist leaders
expected that controls would be
relaxed and consequently they
were passionately opposed by the
people in southern Nigeria
under the guidance of Ezekiel
Way.
Along with the willingness to
publicize and actively support
all grievances of local
communities against the colonial
government and European
interests in his newspapers
brought local opposition to
Shell DARC's exploration
activities into the open.
The secretive nature of the
joint ventures activities and
its unwillingness to inform
local communities of what
exactly it was doing in their
territories had already led to
the questions being asked in the
Legislative Council in March of
1940 by land owners in the
Okigwe and Afiko areas regarding
the nature of their operations,
their claims to land and the
size of their concession.
Shell DARCA's lack of
communication with local
communities stemmed mainly from
the legislative context in which
they operated in Nigeria.
The Mineral Oils Ordinance did
not require the joint venture to
obtain permission from any
landowners to conduct
exploratory work.
But it did guarantee the Oil
Exploration Party's protection
from any person who might
interfere with their work, who
was liable, on conviction, to be
fined or imprisoned.
The only protection the
ordinance provided for local
communities was the offer of
compensation payable to local
communities for the destruction
of economic trees and crops by
all exploration parties at rates
set by the district officer.
As mentioned earlier, shell, the
ARC's exploration work after
1946 focused initially on the
Oweri, okiwe and Omoahea regions
, which were already densely
populated and where Azikiwe and
the NCNC enjoyed strong support
by that time.
Consequently, when the Ikeduru
people rose up in opposition to
the Joint Ventures Exploration
Party headed by a Mr HS Marchant
in late 1948.
As Ikewe's paper, the West
African Pilot was quick to
publicize this opposition and to
lend strong support to the
Ikeduru people in a number of
editorials.
The Ikeduru people firmly
rejected the governmental claims
to the right over all minerals
on their land and refused to
grant permission to the
government or any company to
mine these minerals.
They were therefore requested
the colonial government to order
both the Owera district officer
and Shell DARSC to stop
meddling with their inalienable
mineral rights.
Opposition also spread to other
parts of the region in February
1949.
The Shell DARSC Y exploratory
party clashed with the local
community in Orodo, which led to
the summoning of the Omoahia
police by the Owele district
officer to provide protection
for it.
The act was strongly condemned
by the West African pilot, which
wrote that the district officer
should have sided with the
people and not with the joint
venture.
Opposition to Shell DARCOI was
not confined to communities, not
with the joint venture.
Opposition to Shell was not
confined to communities in which
the joint ventures was engaged
in exploration work.
The Mbama clan in the Okigwe
District, for example, drew a
petition against the joint
venture in August of 1949, which
stated that they did not want
the joint venture to enter their
land, nor explore it or drill
for oil.
The petition predated
activities by Shell DAROCY in
the Mbama clan territory.
Azikiwe not only publicized
local opposition to Sheldon
Arasiwa in his papers but
further raised the issue at the
Legislative Council in April of
1949 when he asked the governor
to explain the joint venture's
activities and position in the
Ikeduru area in the Owe district
.
Activities and position in the
Ike Duru area in the Owe
district.
The joint venture and the
colonial government initially
responded to this opposition in
two ways.
Firstly, they were quick to
attribute much of the agitation
to the nationalist movement in
eastern Nigeria and to Azikiwe
in particular.
Azikiwe was accused of always
being ready to take up the
goggles in his newspaper on
behalf of any cause, regardless
of its merits, out of which he
thinks political capital can be
made.
In this way, local protests
became tainted by the
association with Ezekiel in the
eyes of the colonial authorities
and Shell DA ROCY.
Secondly, colonial government
did not hesitate to use force,
or the threat thereof, against
communities and willingly sent
pleas to protect the exploration
parties in the Ikeduru and
Orodo areas.
From the consulted sources it is
clear that the colonial
government and Shell DARCY
decided to explore less
confrontational methods in its
handling of local opposition to
oil exploration in the second
half of 1949.
In a widely publicized public
statement issued on 4th August
1949, the colonial government
expressed its concerns regarding
what it termed as
misunderstanding over the
activities of Shell Company and
clearly stated the terms under
which the joint venture operated
.
Landowners were assured that
the joint venture had no right
to acquire any land and that
compensation would be paid for
all damages.
The government also made it
clear that they would continue
its support for Shell DARC,
given the enormous benefits to
the future of Nigeria If the
joint venture were to discover
oil in commercial quantity and
quality.
Shell DRC also explained with
this less confrontational
approach when they informed the
residents of Onitsha on 22
October 1949 of their intention
to start exploration work in the
area one week later.
In a remarkable statement, the
joint venture provided full
details of exactly what their
works would entail, for example
declaring of a straight strip of
land six feet wide and about
two miles long, and the
objectives of the work.
The statement also assured the
land owners that the joint
venture would not be acquiring
any land and that the owners
should make all claims for
damages to the district officer.
The actions by the colonial
government and Shell DARCY
seemingly satisfied nationalist
leaders and local communities
Since after October 1949, there
is no mention of the consulted
sources of any local opposition
to the oil exploration in
general and Shell DARCY in
particular in their period.
That falls within the scope of
this article.
Support from nationalist
leaders for anti-Shell DAR-C-Y
protests also greatly diminished
in the second half of 1949 as
these leaders finally came to
realize the potential of oil in
securing financial viability for
a future independent Nigeria.
This change in position was
clearly expressed by the stance
of the Executive Council in the
disagreement between the
Governor, sergeant Mark Farson,
and the Shell DRCY.
That dominated relations
between August and November of
1949.
When the joint venture applied
for a prospecting license in
August of 1949 to embark on more
extensive exploratory work,
macfarlane saw this as a perfect
opportunity to negotiate with a
joint venture on a number of
issues he considered crucial to
the future development of
Nigeria and to obtain popular
support for oil development.
In a number of meetings in
Lagos and London between
representatives from Shell DRC,
the Colonial Office, the
Ministry of Fuel and Power and
the Nigerian Colonial Government
, mark Frasen repeatedly made
four demands, namely, I quote
one the formation of a new local
company for the special purpose
of developing Nigerians oil
resources to some, system
whereby the Nigerian government
would share in the profits
earned by the company.
Three government to have the
right to support one director to
the board of the company.
For the Nigerian public to have
the opportunity of subscribing
a certain proportion of the
share capital of the company.
Macfarlane's proposals were
very progressive for the time
and were resisted by the joint
venture on many grounds, but
most importantly because it
would constitute an undesirable
precedent which would complicate
the negotiations between oil
companies and governments in
other parts of the world.
Protracted negotiations would
not convince Shell DRC to change
its position, and it insisted
that there was no real
justification to depart from the
colonial model of oil mining
regulations on which the Nigeria
Mineral Oil Ordinance was based
.
Much to the annoyance and
disappointment of the Governor,
the other members of the
Executive Council agreed with
Shell DARCY and voted on 19
November 1949 to retain the
existing legislative framework
for the Joint ventures
prospecting work, which made
allowance only for the dense
standard payment of rents,
royalties and taxes once oil
exploration and exportation
commenced.
The Council based their
decision on the fact that it was
of vital interest to Nigeria
that the search for oil continue
and that any discovery should
be exploited without delay.
The decision by the Executive
Council elevated oil permanently
to the level of the national
interest, and as the investment
and as the involvement of
nationalist leaders in the
governing of Nigeria grew in the
course of the 1950s, local
interests became even more
subordinate when they clashed
with national interests.
In due course, the joint
venture did agree to form a
locally incorporated company
which was called the Shell
DAROCY Petroleum Development
Company of Nigeria Limited.
The company was registered on
10 September 1951 in Lagos.
Shortly thereafter, shell DARCY
also adopted a limited policy of
Nigerianization.
This policy was the first
implemented by the colonial
government in the civil service
in 1948 to prepare the country
for independence in the long
term.
The country for independence in
the long term, though extremely
important to and popular with
nationalist leaders, the tempo
of Nigerianization was too slow
for most Nigerians and this
issue became a regular point of
conflict between the colonial
government and the nationalist
leaders.
Though European enterprises
were encouraged to adopt
Nigerianization policies, there
was no official governmental
policy to guide this process in
the private sector.
Consequently, the
Nigerianization of European
companies intended to proceed at
a snail's pace.
Shell D-A-R-C-Y was no
exception and by 1954, the
company listed only three
Nigerians as occupying senior
level positions out of a total
workforce of 2,088.
The slow tempo of the company's
Nigerianization seemed to have
stemmed from a deliberate
decision made by it to train
only a few senior grade
Nigerians for integration with
their senior grade European
staff.
Very little is known of this
process in Shell DRCY, since the
consulted sources made almost
no reference to it.
The only other occasion when
this issue came up was in March
1958, when the West African
pilot published a front page
article on the promotion of five
more Nigerians to senior
positions in the joint venture.
Shell DRCY's concessionary area
expanded directly after the war
when their application to
explore for oil in Nigeria's
territorial waters was approved
in 1949.
From 1952 onwards, however,
their concessionary territory
was gradually reduced.
In January 1952, the joint
venture reduced their oil
exploration license to an area
in southern Nigeria covering
56,000 square miles and
stretching from the eastern
border with Dahomey into the
British Cameroons.
This concession was reduced to
13,800 square miles on 19
January 1954.
The reduction of Shell's
DROC-wise concession territory
resulted from their extensive
exploratory work that enabled
them to relinquish control over
areas that they were confident
held limited or no possibilities
.
Between 1951 and 1957, the
company gradually applied for 20
oil prospecting licenses
covering about 40,000 square
miles.
That enabled them to commence
with more detailed geological
and geophysical investigation,
to drill and to start with test
production.
Their oil prospecting
concessions were situated, inter
alia, in the Olu Okigwe, oweri,
bende divisions of the Oweri
province, the Akwa, ogu, Onitsha
and Nkusa divisions of the
Onitsha province, the Igala
division of the Kaba province,
akata in the Kalaba province and
the Asha and Asaba divisions of
the Benin province.
It conducted extensive gravity
surveys in their concession
between April of 1948 and May of
1953 and area photography
surveys between 1951 and 1954.
In 1951, the joint venture
drilled its first deep
exploration well at Iwo, near
Oweri, which turned out to be a
dry well.
Between 1951 and 1956, he
drilled 18 exploration,
appraisal and development wells.
Oil and gas were discovered in
Akata in the Kalaba province in
1953, but the oil resources were
very limited at the source.
In January of 1956, oil of
commercial quantity and quality
was finally discovered by shell
d-a-r-o-c-y at oloibri yay we
know that part very well
situated 72 kilometers west of
port hackard at a depth of 12
000 and 8 feet.
This was allowed.
This was followed by the
discovery of oil at Afam shortly
thereafter, 40 km east of Port
Harket.
By 1958, shell DARC had
discovered oil in 12 areas, of
which Oloibri, af depth to
131,000 feet.
In 1957, the Oloibri field was
put into production.
By then the company had begun
with the development of the
necessary infrastructure to
transport the crude from its
source to the company's terminal
in Port Harkard.
To this end, 6 inches and 10
inches diameter widened steel
oil pipes.
Pipelines were laid from the
Umalogo village, ahoda division,
igbema village, degema division
and Obiakub village, aba
division to Port Harcourt.
Oil production started at
Oloibiri in early 1958 at 3,000
barrels per day, while the AFAM
field was also put into
production in the same year the
first shipment of Nigerian crude
oil exports 8,500 tons of crude
oil arrived at Rotterdam on 8
March 1958.
Bringing that first shipment to
Rotterdam represented an
investment of £27 million
between 1936 and 1958 for Shell
DARC An investment worth it, you
will say.
The first shipment of Nigerian
crude oil pushed out in a new
era in the Nigerian oil industry
.
Nigerian crude oil pushed in a
new era in the Nigerian oil
industry which would over time
see this industry develop into
dominant sector of the Nigerian
economy.
The successes of Shell DERCY
also attracted the attention of
other multinational oil
companies From even before the
discovery of oil at Oloibri.
The process of opening up the
Nigerian oil industry to other
companies was well underway.
This process started in 1955
when the first non-shell DA ROCY
oil exploration license was
granted to the Mobile
Exploration Company of Nigeria,
a locally incorporated
subsidiary of the Sokoni Mobile
Oil Company.
Mobile's concessions covered
most of northern Nigeria and the
company very soon discovered
why Shell DARCY had to
relinquish their concession in
this territory.
By 1957, mobile had
relinquished most of the
northern Nigerian concessions
apart from three small areas and
had applied for an exploration
license covering about 4,000
square miles in the western
region stretching from the
border with Dahomey along the
coast of the east of Lagos.
The discovery of commercially
viable oil deposits in Nigeria
also coincided with the 1956
Suez Crisis.
Yes, the Suez Canal For those
of you who know the different
gateways of the world, suez
Canal is one of them, yes, which
ensued multinational oil
companies' interest in Nigeria
because this country was
situated on what was perceived
to be the right side of the Suez
Canal.
Yes, history is a good teacher.
The commencement of crude oil
exports in 1958 ensured the
interest of other multinational
oil companies, such as Gulf Oil,
tennessee Gas Transmission, the
Italian firm ENI, and this one
is so big I'll just give you the
acronym SAFRAP is so big, it's
a French.
That's what metamorphose into
Total SAFRAP, who all obtained
oil exploration concession
between 1960 and 1962.
Then we come to the conclusion.
The history of oil exploration
in Nigeria clearly illustrates
the fact that the discovery of
commercially viable oil
resources was a long, drawn-out
process.
Much to the disappointment of
early oil ventures, the Nigerian
environment proved to be their
most challenging obstacle, which
required greater technology
than the petroleum industry
possessed at the time.
Consequently, the early
exploration work was plagued by
failure.
Nigeria, like many other
tropical zones, greatly
benefited from the
professionalization I beg your
pardon of the petroleum industry
from the 1920s onwards, which
would in future prove Sorry I'm
going to take that again, sorry,
sorry.
Nigeria, like many other
tropical zones, greatly
benefited from the
professionalization of the
petroleum industry from the
1920s onwards, which would in
future provide oil companies
with the necessary trained
scientists and equipment to
conduct successful exploratory
work in the challenging
environment.
Successful exploratory work in
the challenging environment.
In addition to the challenging
environment, the British
government did very little to
promote oil exploration in
colonial Nigeria.
Negotiations for oil
concessions were often
protracted and no special
incentives were offered to oil
companies to retain their
interest in Nigeria when initial
investments were exhausted.
As a consequence, the
exploration for oil in colonial
Nigeria became the domain of the
large integrated oil companies
represented by Royal Dutch Shell
and the Anglo-Persian Oil
Company, who had the financial
resources to fund the extensive
and expensive search for oil in
the colony and the technological
expertise and equipment to
achieve such success over the
long term.
Even after the industry started
to open up to other competitors
from 1955 onwards, it was only
large oil companies who became
involved in Nigerian oil.
These dominants did not
diminish after the Nigerian
government obtained a majority
share in all the oil companies
active in the country in the
1970s, and this state of affairs
ensured that Nigerian investors
had limited opportunities to
directly participate in their
country's largest industries up
until the 1990s, when the
government deliberately opened
the industry up to smaller
Nigerian oil companies.
In part, this process of foreign
domination and lack of local
participation ensured that the
oil industry retained its
enclave character within the
Nigerian economy during the
independent era.
It also ensured the alienation
of local oil producing
communities from these important
resources, who were given
limited opportunities to
participate in the industry
beyond their main role as
semi-skilled and unskilled
labour.
The process of alienation was
further enhanced by the
government's support for the oil
industry in their often
conflicting relations with local
communities.
This trend was firmly
established in the 1940s when
the colonial government gave
their full support to Shell
DARCY in their dealings with the
local communities and was
further enhanced by the 1949
decision by the Executive
Council to allow the company to
continue work along lines
dictated by the company, because
oil was of national interest in
Nigeria.
Oil would remain in national
interest in the country, to the
detriment of local problems and
concerns, until local oil
producing communities forced the
oil industry, the Nigerian
government and the world in the
1990s to take note of their
grievances against oil
production in their local
environment.
And that's not the end of the
reading.
Actually, that's the beginning
of your thinking process.
Now, you see, history has a way
of showing us, and someone said
once to me the future has
hidden secrets in history.
So if you go back in time, so
to say, you unearth certain
hidden treasures.
So, for Nigeria, recently
there's been this I would call
it cycle where most of the oil
majors are divesting from,
they're divesting their interest
from the shallow, what we call
the shallow waters.
You know, the swampy areas, and
more or less like opening up to
indigenous firms to come and be
part of it.
They are now, you know, going
into deep waters based on their
technological advancement and
all of that.
It is an opportunity for us as a
people to see that we can
actually learn from this and
actually, would I say, create
our future.
Take hold of this.
Well, I thought to come and do
this with you is not long, you
know, sitting down, reading, and
all of that.
The idea is to you is to create
that thing in you like a
catalyst, like a spark that you
will rise up as a Nigerian and
know that you have a great
future.
Your past, yes, but the future
is in your hands.
All right, guys, it's always fun
coming into this space.
You guys know that, and I'm
always excited knowing that
you're there listening to me.
Yes, we've done a lot in this
space.
You will agree with me.
We've done a lot, but it is not
beyond the power of words.
I got to go now.
You know how we say it on the
show.
This is where we come into lean
on one another's world
experience to forge a positive
path.
Alright, then I got to go now.
Can I come here again?
Bye for now.
Awesome time it has been with
you on the World Cafe Podcast
today.
Thank you for being there.
You can catch me up on my
social media handles Twitter,
facebook, linkedin and Instagram
, all at Amakri Isoboye.
Also, you can get copies of my
books A Cocktail of Words, the
Color of Words by H Aaron
Notebook and Hocus Pocus on God
on Amazon and Roving Heights
online bookstores.
You can also subscribe to my
YouTube channel at the same
address at Amakri Issawe.
I love to hear from you and how
this podcast has impacted you.
You can leave me a message at
my email address amakrigaribaldi
at gmailcom.
Email address at macrigaribaldi
at gmailcom.
That is
A-M-A-C-H-R-E-E-E-G-A-R-I-B-A-L-D-I
.
Yes till I come your way again.
Bye for now.