CHAPTER ONE
GENERAL INTRODUCTION
1.1. Background to the Study
The Federal Republic of Nigeria is endowed with abundant mineral resources and hydrocarbons. There is no state of the federation that does not have one natural resource or the other.
But my main focus would be on petroleum (oil) and gas which is the mainstay of the economy. Nigeria’s oil and gas activities are largely carried out in the Niger Delta region of Nigeria, in an area covering about 70,000 square kilometers1. The Niger Delta region comprises of Akwa Ibom, Bayelsa, Cross Rivers, Rivers, Delta, Edo and Ondo States. When God provided Nigeria with mineral resources, his purpose was to lift up the country’s economic and social status and make the citizens enjoy respect and honour among the comity of nations. But like in the story of creation where God created man and put him in the Garden of Eden; the Garden of hope and comfort, man lost this great free gift due to greed and selfishness which led him to sin.
Nigeria entered the world map of oil producing countries when the first barrels of crude oil to be exported from Nigeria were drilled from the wells. Since then life has never been the same again, not only for the Niger Delta region, but for Nigeria as a whole. Huge revenues accrued from this black gold,Government embarked on development projects that would make life easier for Nigerians but not without neglecting our traditional sources of revenue, i.e. agriculture, mining and craft. The result is the disappearance of cocoa and palm plantations in the south as well the groundnut pyramids in the north. Mineral Resources which comprise of oil and gas, a whole lot of which Nigeria is blessed with is one of the most important sources of energy in the world today. World energy statistics indicate that it presently accounts for about 53% of world energy supply2. In Nigeria, the oil sector has continued to remain the mainstay of the national economy. Presently, it accounts for about 90% of Nigeria’s total export earnings and over 70% of Federal Government revenue3. Oil and gas are treated as two separate but overlapping mineral concepts. In actual fact the Nigerian law tends to deal with “Petroleum” as an embodiment of both “oil and gas”, and to try and legislate thus, the evidence of this may be seen in the definition of petroleum that may be found, upon curious enquiry of some of our statue books and in case laws which state that “petroleum can be defined as mineral oil or any related hydrocarbon or natural gas as it exists in its natural state.