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December 19, 2014
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FREQUENTLY ASKED QUESTIONS ABOUT NIGERIAN PETROLEUM DEVELOPMENT COMPANY LIMITED (NPDC)
Q: What is NPDC?

Ans: The Acronym: NPDC means Nigerian Petroleum Development Company Limited. It was established in 1988 as a wholly owned subsidiary of NNPC.

Q: What is the relationship between NPDC and NNPC?

Ans: NPDC is a subsidiary of NNPC where as NNPC is a Federal Government establishment that was created on April 1, 1977 under Degree No. 33. It was the merger of Nigerian National Oil Company (NNOC) and Ministry of Petroleum Resources that gave birth to NNPC.

Q: What are the major functions of NPDC?

Ans: NPDC is solely responsible for Petroleum Exploration and Production Activities. Its functions include the following:
  • Exploration: Seismic acquisition/processing/interpretation; volumetric/risk, Analysis, exploratory drilling and testing
  • Appraisal: Drill appraisal wells, re-evaluation/survey/testing; Development concept study, facilities & concept selection Performance predictions and economic & portfolio planning/Analysis
  • Development: Drill development wells, production optimization, well engineering, field surveillance, reservoir management and Field operations
  • Production: Drill infill wells, well Engineering, work over operations, Intervention & Stimulation, Production Optimization
  • Abandonment: Environmental Impact Assessment (EIA), Effluent Monitoring, Testing/Facilities demobilization, Remediation and Decommissioning
Q: Who are NPDC Joint Venture Partners?

Ans: Shell Petroleum Development Company (NNPC/SPDC JV), Chevron Nigeria Limited (NNPC/CNL)

Q: Who are NPDC Service Contract Partners?

Ans: NPDC has SC alliance with Agip Energy & Natural Resources (AENR) and Shares of China Petroleum and Chemical Corporation (SINOPEC).

Q: How many operational areas has NPDC and where are they located?

Ans: NPDC's operations are centered in five (5) States in the Niger Delta region namely: Edo , Delta Bayelsa, Rivers and Imo.

NPDC also has base offices/warehouse in Warri, Port Harcourt for operations logistics support & liaison offices in Lagos and Abuja .

Q: Where are NPDC’s operational activities currently located?

Ans: NPDC currently operates nine (9) Oil Mining Leases (OMLs) namely:

OIL MINING LEASES ON NPDC CONCESSIONS

1. OML 111 Oredo/Oziengbe Fields

2. OML 119 Okono/Okpoho Fields

3. OML 119 Ugboko Fields

4. OML 64 Kukaku 1 Field

5. OML 65 Abura Fields

6. OML 66 Kukaku 2 Fields

NPDC/SPDC JOINT VENTURES (JV) OIL MINING LEASES

1. OML 13 Utapete Fields

2. OML 20 Egbema/Egbema West Fields

NPDC/CNL JOINT VENTURES (JV) OIL MINING LEASES

1. OML 49 Aro/ Oghareki Fields

2. OML 51 Yorla South Field

NPDC also has interest in nine (9) non-operated Oil Prospecting Licenses (OPL) namely: OPLs 214, 223, 242, 244, 251, 256, 318, 325 and 332.

NPDC is currently the 7th largest oil producer in Nigeria . It is a known fact that the performance of any exploration and production company is assessed by its reserve portfolio and production level.

Q: What is NPDC’s current reserve and production status?

Ans: NPDC has shown a conspicuously excellent growth in its proven reserve from about 200 mmbbls (million barrels) in 1999 to about 315 mmbbls in 2007. NPDC has also increased its production level from about 10,000 bopd (barrels of oil per day) to about 70,000 bopd in 2009. To improve on its reserve and production, the company is aggressively exploring opportunities in other petroleum acreages with particular interest in Gulf of Guinea .

Q: Safety is the watchword in any oil & gas business, what obtains in NPDC?

Ans: NPDC preaches safety in all its activities and that is why it has a department that is solely responsible for the enforcement of HSE industry standards called QHSED. QHSED means: Quality, Health, Safety and Environment Department. The QHSE department which is under the watchful eyes of the Executive Director, Engineering and Technical Services (ED, ETSD) traditionally organizes Periodic Safety Awareness Campaigns, statutory Environmental Impact Assessment (EIA), Post Impact Assessment (PIA), etc.

Q: NPDC aspires to be the benchmark for Corporate Social Responsibility in Nigeria ; what steps has the company taken to attract and retain the goodwill of the host communities?

Ans: NPDC constantly engages the Public Affairs Department to facilitate the socio-economic empowerment of host communities to mitigate against social risks that may cause disruptions of operations.

Q: What are the major challenges of NPDC?

Ans:
  1. Security
  2. Rig Availability
  3. Infrastructure
  4. People Issues
  5. Plan Implementation
  6. Governance
Q: What are the key NPDC Business Objectives?

Ans: NPDC will become a major player in the Nigerian oil & gas sector in the next five years.

NPDC would increase its reserve base from 350 million bbls in 2009 to 750 million bbls by 2012.

NPDC would increase production from its current capacity of about 70,000 bopd to 150,000 bopd by 2012.

NPDC is poised to develop a human capital base with the right competences to compete globally.

NPDC is set to optimize the use if IT for business operations and decisions.
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