Ondo State, located in South Western part of Nigeria has got people asking a popular question over the years, “does Ondo State have crude oil?” When people talk about oil-producing states in Nigeria, States like Rivers, Delta, Bayelsa, and Akwa Ibom often come up. But what about Ondo State? Ondo is often overlooked in oil conversations, but it shouldn’t be.
In this article, VisitNaija will answer that question, and also add some interesting facts to know on the article.
Does Ondo State Have Crude Oil?
Yes! Ondo State has crude oil and is officially recognized as an oil-producing state in Nigeria. With an approximate daily output of 60,000 bpd, Ondo State is the 5th largest producer of hydrocarbon in Nigeria.
Crude oil was discovered in commercial quantities in the coastal areas of the state decades ago, and exploration has been ongoing, especially in the riverine parts. The state is also considered part of the Niger Delta region, which is the hub of Nigeria’s oil production.
Key Oil-Producing Areas in Ondo State
The major oil-producing communities in Ondo State are located in the Ilaje and Ese-Odo Local Government Areas. The notable areas include; Ilaje, Mahin and Ugbo communities respectively.
These areas are not just oil-rich but also culturally tied to the broader Niger Delta, sharing similar environmental and developmental challenges.
Oil Companies Operating in Ondo State
Several oil companies operate in Ondo State, either directly or through joint ventures. Among them:
Chevron Nigeria Limited has been active in the Ilaje area for years, Oodua Investment Company, who holds an Oil exploration lease and a Joint Venture in the area, and the Nigerian National Petroleum Corporation (NNPC) has also been involved in certain exploration and development projects.
Impact of Crude Oil on Ondo State’s Economy
Unlike other oil-producing regions, impact of the crude oil presence is not too felt in Ondo State, despite producing 12% of Nigeria´s oil. Ondo State however qualifies for the 13% oil derivation fund from the Federal Government, which is allocated to states producing oil.
Challenges and Opportunities
Despite having crude oil, Ondo State faces challenges:
- Environmental Degradation: Spillage, gas flaring, and poor waste management.
- Limited Refining Capacity: There’s a lack of local refining, leading to dependence on distant refineries.
- Infrastructure Deficit: Roads, healthcare, and schools in oil-rich communities are often in poor condition.
But there are also big opportunities:
- Modular Refineries: These smaller, flexible refineries could be game-changers.
- Foreign Investment: With the right incentives, the state could attract major international investors.
- Youth Empowerment: Oil revenue could fund education, training, and entrepreneurship.
The Future of Crude Oil in Ondo State
The future looks promising if the right moves are made. With better policies, community engagement, and infrastructure development, Ondo can fully benefit from its oil wealth. There are ongoing talks about expanding exploration and even potential offshore drilling.
Conclusion
So, does Ondo State have crude oil? Absolutely. But having oil is one thing—fully benefiting from it is another. Ondo sits on black gold, but the real work lies in turning that into visible development for its people. With the right leadership and investment, the state could join the top ranks of oil-producing powerhouses in Nigeria.
