The Nigerian Petroleum Development Company (NPDC), said it had generated N176.5 billion revenue from crude oil sales in 2006, 11 % above the N161.8 billion recorded in 2005.

The Chairman of the NPDC Board, Dr. Funso Adebiyi said at the just concluded Annual General Meeting of the company in Abuja.

Dr. Adebiyi said that the revenue figure was an account of sustained production from Okono/Okpoho fields and the unprecedented and favourable global oil prices, which were above the plan price of $55 per barrel. The NPDC is an exploratory and production subsidiary of the NNPC.

“The sustained increase in global demand for crude oil in 2006 impacted positively on NPDC’s operations as the company was able to attract higher prices than planned for its crude oil streams with no distressed cargo recorded”, he said.

“Given the geopolitical developments in the usual spots in the world today and the underlying fundamentals of the global markets, I believe the upward movement in crude oil demand observed in 2006 will continue in 2007″, Dr. Adebiyi said.

According to him, “given the planned work activity of the NPDC for the year 2007 and a reorganized management team, focused on performance and quality service delivery”, he was positive that the mid-term objectives of the company for increase in reserves from 350 to 500 million barrels and production from 70,000 to 150,000 barrels per day by 2009 would be realised.

He affirmed that the company is also complying with Government directive for zero flare by 2008.

At the occasion, the Managing Director of the NPDC, Engineer Fisoye Delano said the company continued the expansion of its portfolio in 2006 with incursions into the international terrain through the participation in the bid round for a block in Equatorial Guinea and the acquisition of two blocks.

“This would provide a unique entry by NPDC into what is generally acceptable today as a fast growing Gulf of Guinea petroleum play”, he said.

Engineer Delano further said that it was the plan of NPDC to double its production within three years through infill development, aggressive exploration and development of its portfolio of asset.

He however said that more could have been achieved, were it not for some serious setbacks. He said the setback were the continued shut in oil operations in Abura, Oredo and Oziengbe fields; the attack of Mystras by militants in November 2006 which adversely affected production to the extent that about 2.2 million barrels of production were deferred and their inability to execute the drilling campaign due to rig unavailability.

On the Joint Venture activities, he said that a budget of $12.891 million was approved for the year 2006 for NPDC by the NNPC-JV partners resulting to key achievements in acquiring Chevron assets and Shell Petroleum Development Company assets.