Frequent question: What is the cost of production of crude oil in Nigeria?

How much does it cost to produce a barrel of crude oil in Nigeria?

Nigeria is among the countries with the highest unit cost of production globally. Producing a barrel of oil in Nigeria costs between $21 – $30 per barrel, on average.

How much does it cost to produce crude oil?

Crude Oil Cost

The cost to produce a barrel varies from about $20 per barrel in Saudi Arabia’s desserts to $90 per barrel for some deep-water wells. In the example below, the crude cost is $1.39 per gallon ($58.26 per barrel).

How much does it cost to produce 1 barrel of oil?

In the United States, production costs are $36 a barrel — still below the trading price. Those findings are from Rystad Energy’s UCube database, which has information from roughly 65,000 oil and gas fields around the world.

How much does an oil well cost in Nigeria?

“A 10,000 feet well producing only 3,000 BOPD costs up to $25Million to construct in Nigeria”, Okwa allows. “To move from the current 1.5MMBOPD to 4MMBOPD requires massive well construction activities, in the order of over 800 wells per year. The associated investment is $21Billion per annum.

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What percentage of Nigerian GDP relies on oil?

Nigeria’s economy and budget has been largely supported from income and revenues generated from the petroleum industry since 1960. Statistics as of February 2021 shows that the Nigerias oil sector contributes to about to about 9% of the entire countries GDP.

Who produces oil the cheapest?

Oil traded at about $30 a barrel. Very few energy companies can produce oil when the price of oil is this low. Saudi Arabia, Iran, and Iraq had the lowest production costs in 2016, while the United Kingdom, Brazil, Nigeria, Venezuela, and Canada had the highest.

How many Litres of petrol are in a barrel of crude oil?

One barrel equals 42 US gallons or 159 litres. If per litre crude oil is costing us Rs 23.39 and the current petrol price is Rs 74.83, where is the rest of the money, Rs 51.44, a staggering 68.7 per cent of the price we pay, going?

What is the cost of making petrol from crude oil?

How is Petrol Price in India calculated?

Petrol Price *
Crude Oil – Cost per Litre Rs 38.97 per Litre
Basic OMC Cost Calculation *
Entry Tax, Refinery Processing, OMC Margin, Freight Cost Rs 3.82 per Litre
Basic Cost of Fuel after Refining Cost Rs 42.79 per Litre

How do you calculate barrel price?


The figure is determined by dividing the costs incurred during a specified period by the volume (barrels or Mcfs) of reserves added during the same period. For example, if the incurred costs were $100,000 and the reserves added were 20,000 bbl, the finding cost would be $5/bbl.

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What is the profit on a barrel of oil?

As of January 2020, the average net profit margin for the oil and gas drilling industry was 6.8%.

What price is oil profitable?

According to a 2021 survey, the average oil producer operating in the Eagle Ford oilfield in the U.S. needed WTI oil prices to amount to a minimum of 46 U.S. dollars per barrel in order to profitably drill a new well. This compared to a breakeven price of 17 U.S. dollars per barrel for existing wells.

Which is the richest oil company in Nigeria?

Shell Petroleum Tops as Richest Oil Company in Nigeria with US$388.4 billion (2018) in revenue.

How many oil blocks are in Nigeria?

In total, there are 388 oil blocs in Nigeria.