Nigeria - Distribution & Marketing.

Distribution of oil products in Nigeria is done through more than 7,000 stations. The transport facilities which bring the products to these outlets are managed by PPMC.

Storage and distribution depots are linked to the refineries and port terminals by pipelines. Product distribution is also done by a tanker service, which has been the focus of theft and diversion of shipments.

Oil products were first marketed in Nigeria by Socony Vacuum Oil Co., Mobil's predecessor, which sold Sunflower kerosine. In the mid-1970s, this was expanded to include Mobil, AP, Total, Texaco, National, Agip and Unipetrol. But Texaco has since relinquished 60% equity in its retail affiliate Texaco Nigeria.

Elf Marketing entered Nigeria in the late 1980s along with local entrepreneurs encouraged by the state to participate. Elf was eventually absorbed by Total, which had long operated in Nigeria's downstream sector (see Total's downstream operations in gmt6NigrFieldsAug10-09).

As the economy boomed in the 1970s, oil demand shot up and fuel shortages ensued. The government built pipelines and storage depots. By the late 1980s, 3,001 km of pipelines and 16 storage depots had been built.

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