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The industry is dominated by 6 major joint venture operations managed by a number of well known multinationals, Shell, Mobil, Chevron, Agip, Elf, and Texaco. The production concessions are managed through joint venture companies, in which the Nigerian Government, through the Nigerian National Petroleum Company (NNPC), holds about 60% shareholding. The foreign joint venture partners manage the operations, under a joint equity financing structure regulated by a Joint Operating Agreement. All operating costs are financed jointly, by a system of monthly cash-calls. A Memorandum of Understanding (M.O.U.) defines the commercial agreement between the partners and the government.

A small production sharing operation, previously managed by Ashland, has now been taken over by Total. Apart from the major joint venture operations, a number of private Nigerian firms have been awarded concessions, and most have been involved in the exploration of their blocks over the past 2-3 years. 3 of the firms have commenced production-Amni International, Dubri Oil Limited, and Consolidated Oil. The government plan to press ahead with more local investment in the oil sector, and have issued directives guiding the development of ‘marginal fields’ comprising small, abandoned fields, which have remained undeveloped by their joint venture partners. Offshore companies have been invited to participate in the development of these fields.
The last few years have been a difficult period for Nigerian Upstream oil sector-political problems brought on by the hanging of the activist, Ken Saro-Wiwa, cash-call problems with the Government, budget cuts, and the continuing problems with the host communities in the Niger Delta area. Despite all of this, given the important role that this sector plays in the economy of Nigeria, the business of oil continues.
The new democratically elected government in Nigeria, has indicated their resolve to press ahead with policy objectives to enhance Nigeria's production capability to 4 million bbls/day by the year 2010, and to increase reserves to 40 billion barrels. A restructuring of the NNPC is being undertaken to ensure that the company can meet these objectives. Considerable interest is again being generated in the Nigerian oil industry, and a major marketing effort will be undertaken by government in the next 18 months to highlight the opportunities within the sector.