After 50 years of Oil exploration, Nigeria is closer to fulfilling its need for Private Refineries. Nigeria is the largest Crude Oil producer in Africa, eleventh largest producer in the world and the fifth-largest supplier of Crude Oil to the U.S. Nigeria has seven sedimentary basins including Niger-Delta, Deep Offshore Niger Delta, Benue Trough, Lake Chad, Sokoto, Anambra and Dahomey (Benin). Niger Delta is a mature Oil basin and is considered to be one of the most prolific Oil bearing Sedimentary Basins in the world. Nigeria s economy depends on the Oil Industry for over 90 percent of total Foreign Exchange Revenue, which makes it a priority for the Nigerian Government to respect and work with the arrangements of the Oil industry and to recognize its importance to the country as a whole. In the first quarter of 2010, total Nigerian Oil product ion, including Condensates, Natural Gas Liquids, etc., averaged 2.1 million barrels per day. According to the Nigerian Petroleum Corporation, total Crude Oil and Condensates produced in May of 2010 were 2.05 million barrels per day. This was a slight drop from the 2.12 million barrels per day average of April 2010, but kept the countrys production well over its 1.704 million barrels per day output quota from OPEC. The small downturn was the result of security issues in the Niger Delta, but as resolutions for these problems are being enforced, it is being estimated that by the end of the year 2010, Nigeria will be pumping at a rate of 2.650 million barrels per day. At the beginning of 2011, it is est imated that Nigeria will begin pumping at a rate of 2.652 million barrels per day and would reach 2.700 million barrels per day by the end of the year. Nigeria had an estimated 37.2 billion barrels of proven Oil Reserves as of January 2010, though the
Nigerian Government plans to expand its proven reserves to 40 billion barrels. The majority of these reserves are found  along the Country’s Niger River Delta, in Southern Nigeria as well as Offshore in the Bight of Benin, Gulf of Guinea and Bight of Bonny. Nigeria has total production capacity (total potential production capacity if all Oil currently shut-in came back online) of three million barrels per day, including two million barrels per day onshore and one million barrels per
day offshore.

The majority of the Countrys Oil is located in approximately 250 small (i.e., less than 50 million barrels each) fields. However, at least 200 other fields contain undisclosed reserves. Approximately 65 percent of Nigerian Crude Oil Product ion is light (35° API or higher) and sweet (low sulfur content ), with blends Bonny Light (35°-37° API) and Forcados (31° API) being the most exported. One of the main advantages of Forcados Crude Oil is security. The Trans-Forcados
Pipeline (TFP) has, historically, frequently come under at tack by armed groups. Knowing that this pipeline is beneficial to the survival of the Nigerian economy, the Government has offered amnesty to these militant fractions, which they accepted and have since de-armed. The TFP has been completely restored and the Forcados Terminal is functioning at its normal capacity. Some other advantages of Forcados Crude Oil as a light Oil are that it is very low in viscosity as
well as specific gravity. Light Oil generates larger amounts of Diesel fuel and Gasoline when refined in comparison to heavy Oil. Low sulphur means lower CAPEX to meet US and EU environmental requirements. To oversee the regulation of the Nigerian Oil Industry, the Federal Government created the Nigerian National Petroleum Corporation (NNPC) in 1977. The Agency secondary responsibilities include Upstream and Downstream developments. In 1988, the Nigerian Government divided the NNPC into 12 subsidiary companies in order to better manage the country’s Oil industry. The majority of Nigeria’s major Oil and Gas Projects (95 percent ) are funded through joint ventures (JVs), with the NNPC as the major shareholder.

In 2007, Mobil produced an average of 543,029 barrels per day, accounting for 24.68 percent of the total Crude Oil Product ion. Shell Petroleum Development Company (SPDC) dropped from first posit ion due to a major damage to its pipeline in its western division, leading to a shutdown of its operation in that region that created the opportunity for other players such as potential investors coming into the region. The companies include Seplat Petroleum Company Limited, a Nigerian company jointly held by two Nigerian firms, Plat form Petroleum Limited and Shebah Petroleum Development Company Ltd, along with Maurel & Prom of France. Additional foreign companies operating in JVs with the NNPC, include Chevron, Conoco Phillips, Total and Agip. The remaining funding arrangements are comprised of product ion sharing contracts (PSCs), which are mostly confined to Nigeria s deep offshore development program. The Nigerian Market Crude on the International Oil Market, other than Forcados, is Bonny Light. All of the Crude Oil in the country comes from numerous, small producing fields, located in the swamps of the Niger Delta. Product is exported through 7 terminals and floating production vessels.

Amexum Corporation proposes to explore oil blocks and produce feedstock to feed the refinery down the road since a feedstock supply guaranty has been executed between NNPC and Amexum Corporation.