Shell-BP Swot Analysis

Shell Petroleum Development Company, Shell-BP, started oil exploration in the country after it was granted an exploration license in 1938 and in 1956, the first commercial oil field was first discovered in Nigeria by Shell-BP in Oloibiri, Bayelsa State in the eastern Niger Delta region, leading to the first oil export in 1958 which changed the economic and ecological state of the community and Nigeria. Before then, the first exploration well in Nigeria was drilled by Shell-BP at Iho, Northwest of Owerri in 1951, first shipment of crude oil from Oloibiri was on February 17, 1958 while the trans-Niger pipeline was commissioned in May 1965. Most of Nigeria’s oil reserves are in the Niger Delta region of Nigeria. The first refinery was in Port

NNPC has four refineries, comprehensive network of pipelines and depots strategically located throughout Nigeria that links the refineries and is responsible for exploration activities, refinery operations, petrochemical product transportation and marketing. NNPC has joint ventures with oil companies whereby joint operation agreements(JOA) is formed between NNPC and the operators. NNPC sets the guidelines for running the operations and reserves the right to become an operator. All parties are to share the cost of operation with the operator and prepared proposals for program of work as well as budget of expenditures annually. Technical matters are discussed and policy decisions taken to the operating committees where parties are represented based on equity holding. Oil being produced by the joint ventures(JV) companies accounts for 95% of Nigerian’s oil. Shell Petroleum Development(SPDC) accounts for more than 40% of total oil production and the joint venture is composed of NNPC 55%. The joint venture between Chevron Nigeria Limited(CNL) is NNPC 60% and Chevron 40%. For Mobil Producing Nigeria Unlimited(MPNU) is composed of NNPC 60% and Mobil 40%. A joint venture operated by Nigeria Agip Oil Company Limited(NAOC) is composed of NNPC 60% and Agip 20% and Philips Petroleum 20%. Elf Petroleum Nigeria Limited(EPNL) also operates joint ventures which NNPC has 60% stake and Elf has 40%. Texaco Overseas Petroleum Company of Nigeria Unlimited(TOPCON) operates a joint venture whereby NNPC has 60%, Texaco has 20% and Chevron has 20%(NNPC