• Short Summary

    OIL MAY BECOME THE LIFEBLOOD OF THE NIGERIAN ECONOMY.DEVELOPMENT OF THE OIL AND GAS RESOURCES?

  • Description

    OIL MAY BECOME THE LIFEBLOOD OF THE NIGERIAN ECONOMY.DEVELOPMENT OF THE OIL AND GAS RESOURCES IS THE COUNTRY'S MOST SIGNIFICANT ECONOMIC EVENT IN MODERN TIMES.ALREADY OIL HOLDS A MAJOR PLACE IN THE ECONOMY, OVERSHADOWING THE TRADITIONAL GROUNDNUTS, PALM OIL, COCOA AND TIN, AND IT NOW SEEMS CERTAIN THAT PETROLEUM PRODUCTS WILL BECOME NIGERIA'S PRINCIPAL EARNER OF FOREIGN EXCHANGE, BRINGING IN BETWEEN 60 AND 100 MILLION POUNDS ANNUALLY IN JUST A FEW YEARS' TIME.

    EXPLORATION IN SOME OF THE MOST INHOSPITABLE TERRAIN IN THE WORLD WENT ON FOR TWENTY YEARS BEFORE OIL WAS DISCOVERED IN THE LATE FIFTIES.IT IS STILL GOING ON -- AND THE DEVELOPMENT OF THE INDUSTRY HAS ENCOURAGED MORE OF THE BIG INTERNATIONAL OIL COMPANIES TO SPEND MONEY ON SURVEYS, DRILLING, AND PROCESSING.THE OILMEN SAY THAT A "WILDCAT" CORE-HOLE HAS ONLY A 25 TO ONE CHANCE OF SUCCESS AND SO EXTENSIVE TESTS WITH THIS COMPLEX SEISMIC EQUIPMENT ARE MADE BEFORE DRILLING, AND IT'S A COSTLY BUSINESS.25 MILLION POUNDS HAD BEEN SPENT BEFORE THE FIRST CRUDE OIL WAS SHIPPED OUT.NOW A FURTHER 150 MILLION POUNDS HAS BEEN SPENT AND MONEY IS STILL BEING INVESTED IN MORE EXPLORATION AND ALL THE ANCILLARY EQUIPMENT AN OIL INDUSTRY NEEDS...

    MOST OF THE OIL FOUND SO FAR IS IN THE EASTERN REGION.THIS IS A RIG ON THE IMO RIVER NEAR PORT HARCOURT.THE EXPANDING INDUSTRY IS GIVING WORK TO THOUSANDS OF NIGERIANS.THERE WAS NO SKILLED LABOUR FORCE WAITING FOR THE OIL INDUSTRY.IT HAS HAD TO TRAIN MECHANICS, DRILLERS, DERRICK MEN, AND ALL THE BACKROOM LABORATORY EXPERTS THAT MAKE UP THE COMPLEX MANPOWER THAT IS THE OIL INDUSTRY.THOUSANDS OF NIGERIANS HAVE BENEFITED INDIVIDUALLY FROM THE INDUSTRY AND HOTELS, HOSPITALS, AND HOUSING ESTATES HAVE SPRUNG OF AROUND THE WELLS.THE TRAINING IS A PERMANENT BENEFIT TO THE NIGERIAN ECONOMY TOO.ALL THE OIL COMPANIES EMPLOY NIGERIANS WHEREVER POSSIBLE AND REGARD THE TRAINING WHICH THEY HAVE TO CARRY OUT AS MUCH AS AN INVESTMENT AS ANY PIPELINE OR OFFICE BUILDING.

    ONE OF THE FIRST BOOSTS TO NIGERIA'S ECONOMY WAS ADAPTION OF THE NATURAL GAS FROM THE OIL WELLS.THIS POWER STATION AT AFAM, FOR INSTANCE, IS RUN ENTIRELY ON NATURAL GAS.

    AS SOON AS HOPES FOR OIL IN COMMERCIAL QUANTITIES WERE REALISED PLANS WERE LAID FOR THE CONSTRUCTION OF A REFINERY.WORK BEGAN ON A 300 ACRE SITE AT PORT HARCOURT IN 1962 AND IT SHOULD IN USE LATER THIS YEAR.WHEREAS IN 1963 NIGERIA HAD TO SPEND 11 MILLION POUNDS ON IMPORTS OF MAJOR PETROLEUM PRODUCTS, BY THE END OF THIS YEAR NEARLY ALL THE COUNTRY'S REQUIREMENTS WILL BE PROVIDED BY ITS OWN CRUDE OIL, SAVING PRECIOUS FOREIGN EXCHANGE RESERVES.FROM THE REFINERY, A NEW PIPELINE IS BEING CONSTRUCTED TO TAKE THE PETROLEUM PRODUCTS TO A NEW TERMINAL AT THE MOUTH OF THE RIVER BONNEY.

    FROM THE NEW TERMINAL NIGERIA'S OIL CAN BE SHIPPED TO THE WORLD.AT PRESENT NIGERIA'S STAKE IN THE WORLD MARKET IS ONLY ABOUT POINT THREE PER CENT (.3%) AND THERE IS LIKELY TO BE STRONG COMPETITION FROM NORTH AFRICAN OIL EXPORTERS.

    ALTHOUGH IT IS NOT EXPECTED THAT OIL WILL EVER HAVE THE SAME DOMINANT POSITION IN THE NIGERIAN ECONOMY AS IN OTHER OIL EXPORTING COUNTRIES WHERE IT SUPPLIES SOME 90 PER CENT OF GOVERNMENT REVENUE, THE OIL WILL MAKE A SUBSTANTIAL CONTRIBUTION TO NIGERIA'S BALANCE OF PAYMENTS.-- THIS YEAR ABOUT NINE MILLION POUNDS, NEXT YEAR 11 MILLION, AND AFTER THAT PERHAPS MORE EACH YEAR.

  • Tags

  • Data

    Film ID:
    VLVA7KZRN59HGFBJN2GU0SPD1MIMP
    Media URN:
    VLVA7KZRN59HGFBJN2GU0SPD1MIMP
    Group:
    Reuters - Source to be Verified
    Archive:
    Reuters
    Issue Date:
    23/03/1965
    Sound:
    Unknown
    HD Format:
    Available on request
    Stock:
    Black & White
    Duration:
    00:04:00:00
    Time in/Out:
    /
    Canister:
    N/A

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