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V NNPC
COMDP 075

Petroleum Economics Quiz

_______________________________COMDP No.________________

1
Note: Please read the instructions very well and provide the correct
answers to the questions.

This quiz is in Two Parts: (A) Multiple choice questions, (B) Calculation.
You are to answer all questions in the quiz paper.

Part A:

Q1. The equivalent value today of a sum of money received or spent


sometime in the future.

a. Future Value
b. Net Future Value
c. Present Value
d. Net Present Value

Q2. The main reasons for conducting economics analysis are:

i. To ensure profitability
ii. To select between alternatives
iii. To reject proposal
iv. None of the above.
a. i, iii
b. i, ii, iii
c. iv
d. i, ii.

Q3. The percentage interest ownership a company (or government)


has in a Joint Venture, partnership or consortium?

a. Joint Venture
b. Share Holding
c. Working Interest
d. Investment

Q4. The procedure of allocating the cost of intangible asset to the


period in which their usefulness applies is called:

2
a. Depreciation
b. Amortisation
c. Salvage Value
d. Depletion

Q5. What is the answer to the formulae below?

Value of production X

Less Cost of Extraction Y

.................

a. Profit
b. Economic Rent
c. Gain
d. Loss

Q6. ________________ is not a Major component of Government


Take.

a. Royalty levied on Production


b. Cost Oil recovered
c. Tax as levy on assessable Fiscal profit

Q7. Name two major types of business arrangements in Nigeria oil and
Gas industry.

a. ----------------------------
b. -----------------------------

Q8. One of the options below is not a funding source in the Oil and &
Gas Industry.

a. JV Cash Call
b. Production Sharing
c. Modified Carry
3
d. Credit and Thrift

Q9. DPI is a measure of the “cashflow efficiency” of a project.

a. True
b. False

Q10. The sum of money that represents the loss of value of tangible
asset over time because of use or obsolescence is called:

..........................................................................................................

Q11. One of the following is not an example of non-repetitive operations:

a. Well work overs


b. Platform decommissioning
c. Equipment Replacement

Part B.

1. The following cashflow is for an investment proposal in a


new manufacturing company ABX Ltd.

ABC LTD Cash Flow:

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6


Revenue 50,000 78,000 120,000 500,000 169,000 800,000
Investment (140,000) (50,000)
Operating (32,000) (40,000) (150,000) (180,000) (12,000) (450,000)
Expenses
Taxes (5,000) (10,000) (25,000) (13,000) 0 (23,000)

Calculate the following Key Yardstick for investment decision in ABC Ltd.

4
i. Net Cash Flow ii. Total Investment iii. Net present
Value @10% Discount Rate.

GAS & Power Lecture to COMPD 26 May, 2014

Questions & Answers

1. What is the primary composition of natural gas?


2. What are the types of \natural Gas reservoirs?
3. The Gas Value chain consist of 3 sectors namely
4. What units is gas measured?
5. Which sectors are the most dominant consumer of natural gas
globally?
6. What are the historical barriers to competitive gas market in
Nigeria?
7. What is Nigeria’s strategic aspiration for Natural Gas?
8. What are the enabling framework policy for natural gas?
9. What are the distinct roles of the Strategic Aggregator of gas?
10. What are the anchor investments in the Ogidigben Gas
Based Industrial Park?

5
CHIEF OFFICERS MANAGEMENT DEVELOPMENT PROGRAMME
CLASS 073

COMD – Crude Oil Transportation and Trading Test

Candidate No..........................................

1. The following statements are correct on growing profile of the


production sharing contracts in the Nigerian E&P Crude Oil
Production landscape.
a. Government makes more revenue from the PSC than JV
b. Government share of revenues are lower than JV
c. None of the above
d. All of the above

2. National production of Crude Oil has been below Federal


Government budget level since 2011.
a. False
b. True
c. None of the above
d. All of the above.
6
3. NNPC sells Crude Oil and Gas on Free-on-Board (FOB) Basis
to..............
a. Mitigate for risk associated with sovereign debt
b. To facilitate quick loadings
c. To increase return on investment
d. None of the above

4. Nigeria’s current average daily production of Crude Oil and


condensate is
a. 2.3 million barrels per day
b. 2.9 million barrels per day
c. 2.6 million barrels per day
d. 1.2 million barrels per day

5. VLCC stands for:


a. Very Large Crude Carriers
b. Very Large Cargo Carriers
c. Very Large Condensate Carriers
d. Very Large Cool Carriers
6. By year end 2013, Nigeria is
the ...........................................................
a. 13th largest producer of Crude Oil
b. 17th largest producer of crude oil
c. 9th largest producer of crude oil
d. 11th largest producer of crude oil.
7. There are 63 active production fiscal arrangements from which
Government derives petroleum income.
a. True
b. False
c. May be correct
d. None of the above
8. Crude Oil Characteristics are directly related to prices.
a. False
b. True
c. Can be ignored
d. None of the above
9. The following are incorrect about the 27 crude oil and gas
terminals in Nigeria.
a. All the terminals handle both crude oil and gas loadings.
7
b. All the terminals are in the deep offshore
c. All the terminals are owned by the NNPC
d. All of the above
10. The cheapest and most efficient means of transporting crude
oil and gas is
a. By Tankers
b. Pipelines
c. Trucks
d. Barges
11. Current world demand for Crude Oil outstrips supply.
a. False
b. it depends
c. True
d. None of the above
12. Free on Board (FOB) sale of Crude Oil transfers title to
buyer..........
a. At port of discharge
b. When vessel reaches high sea
c. At loading port
d. At the refinery tank farm.
13. NNPC Crude oil term contracts have ............... years tenure
a. Two
b. One
c. Three
d. None of the above
14. Crude oil with low Sulfur content are described as.............
a. Sweet crude
b. Sweetened crude
c. Sour crude
d. Premium crude
15. The following impact pricing of Crude Oil and Gas:
a. Forces of demand and supply
b. Geopolitical tensions
c. Financial market variations
d. All of the above.

8
SUPPLY CHAIN

Quiz – 5 Marks for each Questions

1. NNPC is bound to conduct its procurement activities in


accordance with PP Act 2007. True or False? Answer TRUE
2. Supplier selection is part of the activities that should be done
when preparing an Annual Procurement Plan. True or False?
FALSE
3. The PP Act 2007 stipulates Open, Competitive, Bidding as
the only method of procurement. True or False? FALSE
4. By the guidelines of Bureau of Public Procurement, is this
statement acceptable to appear in a Newspaper Advert: “All Bids

9
are to be submitted in a sealed envelop and must be received
within 4 weeks from the date of this advert”. Yes or No? YES
5. What is JQS (3 Marks), who is the driver in NNPC? (2
marks)
Joint Qualification System. Suppliers are Pre-qualified
6. Which of the following is not a completed SAP Modules?
a. Material Management (MM) Module
b. Sales & Distribution (SD)
c. Plant Intelligence (PI) CORRECT
d. Financial Accounting (FI)
7. SCM/SAP has sole responsibility to ‘Create’ and ‘Release’
Purchase Request under SAP platform. True or False.
8. Only EDs, GMs, MDs, GGMs and GEDs are authorised to
use the MM module of SAP. True or False? FALSE
9. A simple way (layman’s way) to understand what is meant by
the term ‘Strategic Sourcing’ is to say: ‘Spend your money wisely.’
True or False? TRUE
10. What is the current Financial limit of Authority of MEXCOM
Tenders Board (in Nigeria)? #270Million
11. With the implementation of SAP, all materials in our
warehouses are now properly codified. True or False? true
12. A Pro-forma invoice was received from a Compressor
Manufacturer in Japan that said: “FOB Value = Yen 1m.” What is
“FOB”? Free on board
13. Each Directorate in NNPC has a DEXCOM Tenders Board.
True or False TRUE
14. Which is the highest contract awarding authority in NNPC?
15. How much is lost by an importer if he pays Duty on an item
whose Ex-works, FOB and C&F values are $0.9m, $1.0m and
$1.1m respectively based on a wrongly assigned H.S Code
carrying 20% duty instead of the correct H.S Code of 5%? Assume
the following:
a. Exchange Rate of $1 = 165

10
b. Disregard fees for Surcharge, comprehensive inspection
supervision scheme, ECOWAS Trade Liberalization Scheme
and VATA in your calculation.
16. All foreign pro-Forma invoices to Nigeria must be on C&F
basis to Lagos. True or False? FALSE
17. Letter of Credit is not the only instrument for making foreign
payments. True or False? TRUE
18. A Purchase Order can alternatively be called A Purchase
Requisition. True or False? FALSE
19. All valid contracts have to be in written form – True or False?
TRUE
20. The PP Act 2007 is only concerned with procurement and
has nothing to do with disposal of public property. True or False.
FALSE

COMDP – BATCH 074

ASSESSMENT QUIZ

Corporate Culture and Business Ethics

1. One of these is not an element of Organisational Culture:


a. Paradigm b. learning & development c. organisation
structure d. Control system

2. What is Business ethics?


3. ............. is exhibiting high moral and ethical behaviours.
a. Accountability b. Integrity c. transparency

d. Dependability

4. What are Core Values?

11
Answer True or False

5. Paradigm entails an Organisation mission and vision


6. Rituals and routines are elements of organisational culture
7. External environment is one of the factors that shape an
organisation’s culture
8. Putting in place a fair and equitable performance feedback
and reward system is a practice that supports professional
excellence.
9. Business ethics is currently not part of NNPC Corporate
governance.
10. Which of the following is not a characteristic of best practice
business performance dashboard?
a. Timeliness
b. Accuracy
c. Complex
11. State the NNPC vision statement.

Oil and Gas Value Chain

12. Petrochemicals is situated in the .................. segment of the


Oil and Gas Value Chain.
a. Upstream
b. Midstream
c. Downstream
13. Which of the following businesses has the highest profit
margin?
a. Upstream
b. Midstream
c. Downstream
14. One of these is NOT a means of transporting natural gas:
a. Pipeline
b. Rail
c. LNG
12
15. Which of these refinery configurations has the highest yield
of light products?
a. FCC
b. Hydro-skimming
c. Coking
d. Topping
16. Fuel retailing business is typically less profitable than
upstream business (True or False)
17.

Accounting and Finance

18. What is the full meaning of ROCE?


19. Which of the following is true?
a. Assets = Liabilities + Equity
b. Assets = Liabilities – Equity
20. Information about a company’s financial position can be
found in cash flow statements (True or False).
21. Define EBIT.

NNPC
COMDP 074

Petroleum Economics Quiz

________________________________COMDP No._______________

Note: Please read the instructions very well and provide the correct
answers to the questions.

This quiz is in Two Parts: (A) Multiple choice questions, (B) Calculation.
You are to answer all questions in the quiz paper.

Part A:

13
Q1. One of the following is not a role perform by a petroleum
economist:

a. Evaluation of Exploration & development strategies


b. Preparation of Audit Report
c. Analysis of Contracts and Agreements
d. Evaluation of loans and other financing alternatives.

Q2. Any Organisation like NNPC performs Economic evaluation to


make investment decisions because of limited capital resources to
invest in opportunities.

a. True
b. False

Q3. Economic Evaluation is what type of tool?

a. Calculation tool
b. Decision-making tool
c. Engineering tool
d. Political tool

Q4. The expenditures that are generally spent on income generating


assets or items designed to improve production are called?

a. working capital
b. operating expenditure
c. capital expenditure
d. current asset.

14
Upstream quiz

1. What was the average oil price between 1900 and 2009 (in
2009 dollar)?
a. $0.80 c. $29
b. $8 d. $52
2. How much does it cost to find a barrel of oil (industry
average)?
a. $1.50 c. $8.00
b. $5.00 d. $15.00
3. How much of the world’s oil production and reserves does
OPEC control respectively?
a. 90% and 95% c. 40% and 75%
b. 70% and 90% d. 10% and 15%
4. Which country is NOT an OPEC member?
a. Saudi Arabia d. Oman
b. Iraq e. Ecuador
c. Venezuela f. Nigeria
5. Which country holds the most total oil and gas reserves in
the world?
a. Saudi Arabia d. USA
b. Iraq e. Russia
c. Kuwait f. Australia
15
6. How much reserves (reserves divided by annual production)
does an average E&P company hold?
a. 30 – 40 years c. 1 – 5 year
b. 10 – 15 years d. Less than a year

PETROLEUM REFINING QUIZ (ANSWERS SHEET)

1. NNPC has a Refinery situated at:


a. Kaduna b. Benin c. Port-Harcourt d. Warri: Pick
the old ones
2. The total installed capacity of NNPC Refineries in Nigeria is:
a. 35,000bpsd b. 125,000bpsd c. 445,000bpsd

d. 110,000bpsd

3. Which of the Four Refineries has the highest complexity?


a. Old Portharcourt b. WRPC c. NPDC d. KRPC

e. New Portharcourt Refinery

4. Crude Oil is a complex mixture of hydrocarbon compounds


generally classified into (which of the following is untrue?)
a. Sedimentary b. Paraffinic c. Naphthenic d. Aromatic
5. All petroleum Refining processes were designed by Dr.
Drake to provide simple physical change of crude petroleum into
marketable products.
a. True b. False
6. The original requirement of petroleum refining was to
produce:
a. ATK b. Petrol c. Petrochemical feed stocks

d. kerosene e. Sulfur

7. Which of these is not a refining process?


16
a. Distillation b. Catalysis c. Annealing treatment

d. Solvent treatment e. Asphalt blowing

8. Crude Oil desalting is done to:


a. improve the antiknock rating of petrol b. reduce operating
temperatures c. prevent fouling corrosion and catalyst
poisoning d. prevent thermal cracking.
9. Which of these best describes Crude Distillation?
a. heat treatment process c. Sulfur removal process

d. Separation by boiling points e. Separation of paraffin from


aromatic

10. Vacuum Distillation process will:


a. Increase distillation pressure b. improve acidic number

c. Avoid cracking & coking d. remove dissolved salts

e. Increase residue yield

11. Naphtha Hydrotreating is important because it:


a. is a simple process b. catalyses naphtha production

c. prolongs end of run in platforming process d. produces straight


run gasoline e. requires no additives

12. The Fluid catalytic cracking process:


a. cracks kerosene to high value gasoline b. improves pour
point

c. Reduces sulphur and odour d. reduces visensity

e. increases gasoline yield and octane

17
TEST OF UNDERSTANDING

Please tick the correct answer:

1. NNPC is a merger of:

a. MPR & NNCO b. NOCC & MPR c. MPR & NNOC

d. NCNC & MPR.

2. The Corporation was founded in:

a. 1967 b. 1971 c. 1987 d. 1977.

NNPC has ______ number of directorates.


a. 4 b. 7 c. 8 d. 6

3. ___________ is the most recent Division in NNPC.

a. Audit b. C & I c. Nigerian Content d. RED

4. Staff on JSS 4 to SS 4 are referred to as:

a. Workers b. Staff c. Employees d. Operatives.

5. Staff on JS 4 to JS 1 belong to what Union?

a. NUPENG b. NUPENGASSAN c. PENGASSAN

d. NOPENG

6. Staff on SS 7 to SS 2 belong to what Union?


18
a. NUPENGASSAN b. PEGASSAN c. NUPENG

d. PENGASSAN

7. Staff on M6 – M1 belong to what Union?

a. MANGASSAN b. PENGASSAN c. NUPENGASSAN

d. None

8. Membership of the Union is open to:

a. Management staff b. Junior staff c. Senior staff d. B & C.

9. In the formalized forced ranking process, staff on job band SS1 –


SS 3 are to be ranked:

a. Per Dept b. Per Div /SBU c. Per Directorate


d. Across the Organization e. Per section/Unit.

10. There are ____ nos. of appraisal dimensions in the new PMS.

a. 1 b. 2 c. 3 d. 4 e. 5.

11. Compensation Unit is under what section in Group HR?

a. Employee Relations b. HQS c. MPR d. PIC

12. In the rating scale for business objectives in the new PMS, PM
means:

a. Pass Mark b. Promotion Met c. Partly Measured


d. Partially Met.

13. Job Analysis and Placement is done by:

a. MPR b. ER c. HQS d. PIC e. Performance & Career


Mgt.

19
14. ______ is the number of PENGASSAN Branches in NNPC.

a. 10 b. 6 c. 11 d. 14 e. 12

15. The non-unionized group in NNPC is:

a. JS4 – JS3 b. M6 – M1 c. SS1 d. SS1 – M1.

16. Negotiations in NNPC are done:

a. Biennial b. Biannual c. Yearly d. none of the above.

17. ______ is not a negotiable item.

a. Salary b. Appraisal c. Rent d. A & B.

18. NNPC has ______ number of staff schools.

a. 3 b. 6 c. 4 d. 5

19. Who is GGM, HR?

a. L.E.T Akough b. Alhaji Ibrahim Abba c. Shehu Ladan


d. V.V. Mowoe

20. CAS does not include the following:

a. Furniture b. Transport c. Housing Subsidy


d. Utilities e. Educational Assistance.

21. The Actors in Industrial Relations are:

a. Government and Unions b. Management and Unions


c. Public and Unions d. Employers, Unions and Government.

22. Government plays the role(s) of _______ in Industrial Relations.

a. Regulator b. Guardian c. Police d. Regulator and


Employer.

20
23. A new Salary package can only be implemented after approval by:

a. TMC b. Board C. Salaries/Wages commission d. Ministry


of Labour e. Mr. President.

24. The arm of Government responsible for labour issues is:

a. Ministry of Finance b. Federal Ministry of Labour and


Productivity

c. Federal Ministry of Labour and Information.

25. Generator Allowance is a component of Management monetization


in the following percentage:

a. 10% - 20% b. 15% c. 16% d. 20% e. 25%

26. HR vision is:

a. To be customer focused.
b. Deliver good services to customer
c. To meet corporate goals.
d. To be a customer focused HR partner delivering best
practice services to achieve corporate goals.

27. Management monetization in respect of the element of Housing is


compulsory for the following:

a. M6 b. M5 c. M4 and above d. M6 and above.

28. The adhoc committee formed to attend to disciplinary cases is


known as:

a. Adhoc Committee b. Disciplinary Committee c. Adhoc


Disciplinary Committee d. Investigation Committee.

21
29. Warning letter when issued to a staff has effect on the following:

a. Performance incentive Bonus b. Promotion c. Increment


d. None of the above e. All of the above.

30. Suspension without pay is implemented when/as/to?

a. An officer is being investigated.


b. An officer has committed an offence.
c. A punitive measure.
d. Deprive the officer of his salary.

22
QUESTIONS

1. State PPMC Business Mission.


2. In PMS we look out for:
a. Research Octane Number
b. Flash point
c. Cloup point
d. Viscosity.
3. Price of imported product is affected by:
a. World product stock
b. Crude oil price
c. World Politics
d. Season
e. All of the above.
4. In pumping of product through Pipeline, we introduce a buffer
in order to:
a. Reduce contamination
b. Increase flow rate
c. Decrease flow rate
d. Enhance cutting interface between one product and the
other.
e. A and D

5. The allowable overall Depot loss is:

a. 0.05%
b. 0.5%
c. 5.0%
d. 0.005%

23
6. The biggest problem of PPMC today is:

a. Vandalization
b. Not profit oriented
c. Poor funding
d. Non privatization
e. All of the above.
7. State four problems associated with supply and distribution
of products.
8. In your own opinion how can we solve pipeline
vandalisation?
Pricing of petroleum product is based on:
a. Commercialization
b. Supply and Demand
c. Unlimited profit
d. Controlled loss
e. Negotiation.
9. Why is it necessary to Deregulate the Downstream sector of
the Petroleum Industry in Nigeria?

GFAD COMPD COURSE 046 LECTURE ASSESSMENT QUESTIONS

Name:--------------------------------------- Id No:------------------
24
1. The procedure could be defined as: (I) an established or correct
method of doing something, or (II) any means of doing or
accomplishing something.
a. True b. False
2. Policy is a program of actions adopted by a person, group, or
government, or the set of principles on which they are based.
a. True b. False
3. The Corporate Financial Policy, Procedure & Control Guide:
a. Describes Financial Policies.
b. Explains main Accounting Principles adopted by the
Corporation.
c. Describes Accounting Procedures operated.
d. A&B
e. All of the above.
4. Financially Policy sets the Financial Limit of Authority of:
a. Group Board at N---------------------; and, b. The GMD at
N----------
5. Categories of authorized signatories to NNPC’s cheques are A, B
and C. To be valid, payment instructions require a mandatory
signatory in Category C.
True False
6. Using the Corporation’s depreciation rate of 25% per annum the
estimated useful life of a motor vehicle is -------------------- years.
7. Loans and Advances Unit will normally ensure that staff who do not
retire their touring advances after ------------- do not have further
advance extended to them.

8. Budgeting is a plan of financial operation for some future period


expressed in monetary term.
True False
9. The Department responsible for budget monitoring and control
function in GFAD is:
a. Group Finance Dept.
b. Group Accounts Dept.
25
c. Group Budget and Projects
d. Methods and Procedures
e. Variance Analysis
10. The Department responsible for the design, implementation
and administration of accounting system in GFAD is:
a. Budget and Projects
b. Methods and Procedures
c. Headquarters Accounts
d. Management Information System.
e. Group General Accounts.
11. Adverse variance occurs when:
a. Budget figure exceeds actual figure
b. Actual figure exceeds budget figure
c. The budget is zero based
d. Virement occurs during the budget period
e. The budget is incremental based.
12. Classifications of budget performance evaluation include
Efficiency.
True False.
13. One of the basic concepts of budgeting is to detect
deviations.
True False

14. Budget is not a tool for planning.


True False
15. In order for NNPC to remain profitable it must:
a. Increase income
b. Manage costs
c. Increase asset base
d. Reduce liabilities
e. A & B only
f. A, B & C only
g. All of the above.
16. Generally Financial Statements comprise of:
a. Income statement
b. Cash Flow Statement
c. Balance Sheet
d. Budget Report
e. A, B & C only
f. A, B, C & D.

26
17. Profitability ratios measure the firm’s use of its assets and
control of its expenses to generate an acceptable rate of return.
True False
18. Which Department of GFAD is responsible for the designing
of accounting systems, reviewing, documentation and implementation
of financial/accounting procedures and policies?
a. Methods and Procedures
b. Headquarters Accounts
c. Group Finance
d. Group General Accounts
e. Group Budget and Projects.
19. If an L/C is for the purchase of materials, it must be
accompanied by form (A). True False
20. The Department responsible for the preparation of NNPC
consolidated financial statements is:
a. Group Budget and Projects
b. Methods and Procedures
c. Headquarters Accounts
d. Group Finance
e. Group General Accounts.
21. Financial policy sets the financial limit of Authority of:
a. The GGM/MD at N.............................; and, b. GM/EDs at
N.....................
22. Using the Corporation’s depreciation rate of 10% per annum,
the estimated useful life of computer equipment is ..................years.
23. Mention any three methods of financial statement analysis
............................. ................................ ...............................
24. In making payments to staff and third parties, one of the
following documents is raised:
a. Asset Schedule
b. Payment voucher
c. Receipt Booking Voucher
d. Desk manual.
25. The Department responsible for the management of the
finances of NNPC as a corporation is:
a. Group Treasury Dept.
b. Group General Accounts Dept.
c. Group Budget and Projects
27
d. Group Finance Dept.
26. Financial statement is a set of financial reports showing in a
summarized form, the performance and financial position of a
corporate entity over an accounting period usually one year.
True False.
27. NNPC Group consolidated financial statement for a particular
year is to be prepared, audited and submitted to the presidency not
later than ................................................... of the following year.
28. One of the essentials of budgetary control is to ensure the
availability of budget heads for any spending.
True False
29. One of the following is not part of accounting process:
a. Reporting
b. Classifying
c. Auditing
d. Recording
e. Interpreting.
30. Name three (3) major components of a typical financial
statement.
................................. .................................. ...................................
31. NNPC accounting policy is that “all necessary documents to
support financial records must be retained for a minimum of six (6)
years”.
True False
32. The Accounting software package in use in NNPC is called
the SUN ACCOUNTs SYSTEM and it consists of two Suites, namely:
......................................... and ...................................................
33. The NNPC Group accounts is the consolidated financial
statement of Corporate Headquarters (“the corporation”) and
associate companies.
True False

Questions

1. Three key roles of accounting in an organization are


scorekeeping, problem solving and------------------
28
a. Administrative routines
b. Approval limit
c. Assistance on funding
d. Agreement on financing
e. Attention directing.
2. Financial accounting is focused on providing information for
stakeholders while Management accounting is focused on
generating internal information for management. Yes or No?
a. Yes b. No
3. There are three main components of a balance sheet. What
are they?
a. Assets, liability and owners equity
b. Assets, Liability and Net Assets
c. Assets, Liability and Net Worth
d. Assets, Liability and paid up capital
e. Assets, Liability and authorized capital
4. Not all the resources of a company is an asset. Give an
example of a resource that is not an
asset-------------------------------------
5. Processing staff loans and advances in GHQ is a function of:
a. FAD b. Finance Dept. c. Accounts Dept. d.
Headquarters Accounts e. General ledger
6. Expertise in the design and administration of accounting
system in GHQ resides in:
a. Budget and projects Dept.
b. Methods and Procedures Dept.
c. Headquarters Accounts
d. Management Information System
e. General Accounts
7. Managing NNPC Group tax affairs is a function of:
a. Tax Unit b. Group General Account c. Methods and
Procedures d. FIRS e. Finance Dept.
8. Budget monitoring and control function in GFAD rests in:
a. Group Finance Dept.
b. Group Accounts Dept.
c. Group Budget and Projects
d. Methods and Procedures
e. Variance Analysis
29
9. Write one thing that you can do as a person to improve the
profitability of NNPC operations-----------------------------------------------
10. One of the following is not a member of the group:
a. Fixed Budget
b. Rolling budget
c. Zero Based budget
d. Flexible budget
e. Differential budget
11. One of the following is not a benefit of budget:
a. Planning
b. Motivation
c. Assist management
d. Co-ordination
e. Performance Evaluation
f. Sunk Cost Recovery

12. The four basic Elements of Control are:

i. A plan, zero based budget, variance and correction.


ii. Planning, Motivation, output and control.
iii. Performance Evaluation, Rolling budget, output, and correction.
iv. A plan, output, variance and correction.

13. Two of the essentials of budgeting are:

i. Befriending CPDD staff and creation of chart of Accounts.


ii. Stand firm on your budget proposal and holding GED F & A
responsible.
iii. Establishment of Budget Centre and creation of Chart of
Accounts.

14. One of the basic concepts of budgeting is to detect deviations.

TRUE or FALSE.

15. Classifications of budget performance evaluation include Efficiency.

30
TRUE or FALSE

16. In NNPC, a motor vehicle is a capital expenditure.


TRUE or FALSE
17. National Budget minus NNPC budget equal to a state
budget.
TRUE or FALSE.
18. If a Company uses Zero Based Budgeting in a Year, it means
no virement would be made in that Year. TRUE or FALSE.
19. A simple understanding of budget is a plan of activities
expressed in monetary value. TRUE or FALSE.
20. Which of the following is most important to company
survival?
a. Cash b. Profit c. Revenue d. Cost

COURSE 036

PROJECT ECONOMICS AND MANAGEMENT TEST (15 MINS)

(Answer all questions)

Name:........................................................................................................

ID No.......................................................................................................

Instruction: Circle the right answers – A, B, C or D

Qu. 1 Which is not a characteristic of projects?

a. Unique
b. Finite
c. Repetitive
d. Revolutionary change

Qu. 2 Which is not a characteristic of operations?

a. Stable resources
b. Risk and uncertainty
c. Efficiency
31
d. Eternal

Qu. 3 Economics can be define as the study of allocation of ________


resources

a. Unlimited
b. Stable
c. Scarce
d. Appraisal

Qu.4 Which of these is not an economic indicator used in evaluating

projects?

a. Returns on Investment (ROI)


b. Pay Back Period
c. Internal Rate of Returns (IRR)
d. Arithmetic Progression (AP)

Qu. 5 Which is not a project management variable.

a. Variation
b. Cost
c. Time
d. Scope

Qu. 6 Which is a Project Management Process?

a. Renewable
b. Planning
c. Settlement
d. Contractor

Qu. 7 What does “PMT” stand for in Project Management?

a. Project Management Table


b. Project Management Time
c. Project Making Time
32
d. Project Management Team.

Qu. 8 What is “EPC” in Contracting Terms?

a. Evaluate, Purchase Contract


b. Engineering, Procurement and Construction
c. Engineering Primary Contract
d. Engineering Packaging Contract

Qu. 9 What maximum size of Tankers is the New Atlas Cove Jetty

Designed for?

a. 50,000 DWT
b. 100,000 DWT
c. 125, 000 DWT
d. 250, 000 DWT

Qu. 10 What does “WBS” stand for in Project Management?

a. Work Basic Stage


b. Word Breakdown System
c. Work Breakdown Structure
d. Weekly Breakdown Size

33
EFFECTIVE MANAGEMENT

1. Leadership is about influence and influence is about motivating


others to action. The 3 key motivational elements in life are:
a. Food, Housing, Automobile
b. Fear, Reward, Love
c. My parents, my spouse, my boss
2. In the exercise on mission/self/team, one of the 3 elements must
be prioritized last for a leader to be effective, the element that must be
last in priority is:
a. Mission
b. Self
c. Team
3. The Acronym S.T.E.V.E. stands for:
a. Simple/Tried/Endurance/Victory/Energetic
b. Selfish/True/Endurance/Victory/Enchanting
c. Selfless/Trustworthy/Endurance/Vision/Effective
Communication
4. Vision has a 2 part description which is:
a. Ability to see the desired result & ability to see beneath
the surface of an issue.
b. Ability to see the future & the ability to act on that vision
c. Ability to see & the ability to create what is yet to be
seen
5. True or False, your ability to load is not in any way related to your
ability to communicate:
a. True
b. False

34
6. There are 5 conflict resolution styles, they are: Compete,
Collaborate, Compromise, Avoid and:
a. Fight
b. Accommodate
c. Eliminate
7. In terms of win and lose, what is the correct way to define a
“complete” conflict resolution style:
a. win/lose
b. win/win
c. lose/lose
8. In terms of win and lose, what is the correct way to define a
“collaborative” conflict resolution style?
a. win/lose
b. win/win
c. lose/lose.
9. In terms of win and lose, what is the correct way to define a
“Compromise” conflict resolution style?
a. win/lose
b. win/win
c. lose/lose
10. The key point or lesson to be learned in the Powdered Milk
Case” was:
a. Always look for alternate means to use a product
b. Be enterprising and take advantage of whatever you
can get in life
c. Be aware of what is not always apparent and listen to
your instincts.

11. True or False, “Group Think” is a good thing since it avoids


conflict and results in the right decision being made:
a. True
b. False
12. An average person normally speaks at 125 – 200 words per
minute, however the average listener can comprehend up to:
a. 250 words per minutes

35
b. only 100 words per minute
c. 400 words per minute
13. True or False, making eye contact is always a good idea
when communicating with others.
a. True
b. False
14. When listening to a speaker, you have a question, it is best
to:
a. Interrupt the speaker immediately so you don’t forget
your question
b. Let the speaker finish his/her thought and then interrupt
with your question.
c. Write down your question and ask it when the speaker
is entirely through with his/her presentation
15. Feedback on a performance issue with a subordinate should
occur:
a. In writing within a week of the occurrence
b. Face to face if possible just as soon as is possible
c. In any manner just so long as it is done within 60 days.
16. If the world were reduced to a population of exactly 100
people with exactly the same ratios that exist globally today, how
many of those people would be Asian?
a. 37 b. 47 c. 57
17. How many of those 100 people would live in substandard
housing?
a. 30
b. 50
c. 80
18. What would your total household annual income have to be
to place you in the top 1% of the world’s most wealthiest?
a. $50,000
b. $500,000
c. $750,000
19. True or False, it is not a good idea to be friends with a
subordinate--------
a. True
b. False
36
20. True or False, according to John Maxwell, leadership ability
is always the lid on personal and organizational effectiveness.
a. True
b. False
21. Who is responsible for the following quote – “Leadership is
the art of accomplishing more than the science of management says
is possible?
a. Jack Welch
b. John Maxwell
c. Colin Powell
22. Ray mentioned that we all have “defining moments” in our
life, these moments occur when:
a. we are faced with a death of a loved one.
b. we are faced with a job change or relocation.
c. we are faced with an ethical dilemma.

23. How you respond to a defining moment will most likely


impact:
a. your career
b. your self-esteem
c. your character
d. all of the above
24. According to Ray (and consistent with Maxwell’s 21 st Law of
Leadership), the single most critical work objective for any leader
should be:
a. Accomplishing the task
b. Satisfying his/her boss
c. Developing his/her people

37
TEST ON FUNDAMENTALS OF OIL EXPLORATION AND NNPC
EXPLORATION ACTIVITIES TO CLASS 038

DATE: 13th March, 2006 TIME: 20 MINUTES

INSTRUCTION: ANSWER ALL QUESTIONS

1. Petroleum can exist in the following forms:


a. gaseous only b. solid and liquid only c. gaseous, liquid
and solid
2. Which of these is not a basin in Nigeria?
a. Chad b. Sokoto c. Kainji d. Niger Delta
3. A prospect is defined as:
a. a good financial investment
b. part of a geologic province or basin where exploration is
being focused.
c. a good geologic and geophysical work.
4. Which one of these is a type or are types of Seismic Acquisition
Survey?
a. 2D and 3D but not 4D b. 2D, 3D and 4D c. Air gun.
5. Natural Habitat of Petroleum is:
a. Basins with source rocks, reservoir rocks, cap rock and trap
b. Definitely not in basin.
c. Basin without source rocks and reservoir rocks.
6. Which one of these defines Seismic survey?
38
a. Creating artificial shock at the sub-surface by the use
of a source
b. Creating artificial shock at the surface by force
c. Recording travel times with detectors.

7. In Seismic interpretation, one of these statements is not true:


a. Structural/Stratigraphic features are identified
b. Record same features accruing in adjacent Seismic
lines.
c. Time these features at particular horizons (levels)
d. Do not produce a contour (structural) map of the
prospect.
8. In well location selection:
a. Management consider costs/reward/expectation.
b. Considers cost only
c. Does not consider expectation from the well to be
drilled
9. One of these is not part of IDSL’s business:
a. Seismic data acquisition b. Seismic data processing c.
Reservoir Studies d. Product (Petroleum) marketing.
10. To date we have drilled:
a. 23 wells in Chad basin
b. 32 wells in Chad basin
c. 21 wells in Chad basin.

39
TEST FOR LECTURE ON “UTILIZING & MONETIZING &
MONETIZING GAS THROUGH THE LNG & POWER”

1. Which of the reasons appropriately justifies the National


Objectives for Maximizing gas benefits?
a. Eliminate gas flare/address attendant environmental issues;
facilitate development of domestic power sector; capture
economic value of gas to generate as much revenue as oil
b. Eliminate gas flare/address attendant environmental issues;
increase private sector participation; allow for LPG plants to be
setup throughout the country.
c. Facilitate development of domestic power sector; Allow for
the development of condensates; Facilitate the development of
Nigerian Content.
d. Capture economic value of gas to generate as much revenue
as oil; allow NNPC to become an integrated oil and gas
company; Allow for the rapid development of the downstream
sector.
2. Which of these appropriately represents some of the
fundamentals to accelerated gas development?
a. Price, financing, local content, fiscal reforms
b. Financing, fiscal reforms, local government, infrastructure
development
c. Price, financing, fiscal reforms, legal and regulatory
framework
d. Institutional arrangements, loans, roads, electricity.
3. What informs the parameters for projecting domestic gas
utilization?
40
a. Existing/new power plants; existing/new domestic industries.
b. Existing/new power plants; Free Trade Export Zone.
c. Existing/new domestic industry; increasing oil price
d. Growing population and consumption; Government
intervention.
4. What considerations are used for projecting gas demand for
export?
a. LNG, LPG, GTL, Petrol Stations, NGL
b. LNG, LPG, GTL, NGL, WAGP
c. LNG, Petrol Stations, EPCL, LPG, PPMC
d. LNG, PHRC, KRPC, WRPC, NGL
5. (a) What are natural gas constituents? (b) What is LNG? (c)
What are the gains of liquefaction?
6. What are the essential considerations for natural gas to be
used in an LNG project?
a. Large reserve, good quality, cost for treatment and
transmission.
b. Large reserve, Government subsidy, good quality
c. Good quality, cost for transmission, gas utilization
d. Cost for treatment and transmission, Legislation, Community
issues.
7. What are the two (2) commonly used liquefaction process for
LNG Plants?
a. Which of these appropriately represent the different phases
of the LNG value chain?
b. Gas supply, transportation, terminal/marketing
c. Transportation, Commercial agreements, gas price
d. Gas supply, LNG plant construction, Nigerian Content
e. Terminal/Marketing, Gas supply, domestic utilization.
8. Name three (3) Nigerian LNG Projects and four (IPP)
Projects
9. Name five (5) benefits from LNG and Power initiatives.

NIGERIAN GAS COMPANY LIMITED

Name: SBU: ID. NO.:

41
Attempt all questions by circling the right answer

1. Nigerian Gas Company total installed capacity is:

a. 4.02 Trillion scf/d b. 2.08 Billion scf/d c. 3.04 Trillion scf/d


d. 2.04 Billion scf/d

2. Which of these Countries is not among the first ten Countries with
largest natural gas proven reserve.

a. Russia b. Qatar c. United Kingdom d. Nigeria.

3. Nigeria’s estimated total natural gas reserve is:

a. 167 TSCF b. 178 TSCF c. 187 TSCF d. 157


TSCF

4. For years, gas flares characterised the natural gas sector, with
Nigeria being noted as the world’s worst in gas flaring.

a. True b. false c. partially true d. partially false

5. Which of the following statements is not correct?

a. Gas is becoming very important in the global energy market and


must be profitably harnessed.
b. NGC has 1350km of Transmission pipelines
c. NGC is to be unbundled into gas marketing and gas
transportation
d. NGC to give support for the establishment of a Regulatory
Agency for pricing and fair competition.

6. Nigerian Gas Company Ltd is to be unbundled into:

a. Nigerian Gas Drilling & Gathering Company b. Nigerian Gas


Production & Transportation Companies c. Nigerian Gas

42
d. Marketing & Transportation Company d. Nigerian Gas
Marketing & Producing Company.

7. Nigerian Gas Company has one of the following numbers of the


metering stations:

a. 25 b. 22 c. 28 d. 20

8. BOT simply means:

a. Build Operate and Transfer b. Buy Operate and Transfer


c. Build Operate and Transmit d. Buying, Operating and
Transferring.

9. What does CNG stand for in the use of natural gas for
automobiles?

a. Condensed Natural Gas b. Compressed Nigerian Gas

c. Compressed Natural Gas d. Cryogenic Natural Gas

10. Which of the following is not advantages of CNG?

a. Cheap alternative vehicular fuel b. Very safe as it dispenses


in air and hard to ignite c. It can be stored in gas cylinder d. It
is very clean and emits no pollution.

11. Which of the following is false?

a. NGC was incorporated in 1988 b. Corporate NNPC


Supervision of NGC is through GED exploration and production
c. Transmission of natural gas from producing field to customer is
not a core activities of NGC. d. Development of a national
integrated pipeline transmission network is a core activity of NGC.

43
12. Which of the following fields does Nigerian Gas Company buy gas
from?

a. Oredo b. Egbema c. Bonny d. Ughelli East

13. What does GSPA stand for in natural gas transactions?

a. Gas Supply and Purchase Agreement b. Gas Supply and


Pipeline Agreement c. Gas Sales and Purchase Agreement
d. Gas Sales and Programme Assessment.

14. NNPC equity in the West Africa Gas Pipeline (WAGP) Project is:

a. 45% b. 38% c. 25% d. 65%

15. Which of the following Strategic Projects is on-going?

a. East-West Gas Pipeline b. Ajaokuta – Abuja-Kaduna Gas


Pipeline Project c. West African Gas Pipeline Project
d. Utorogu – Aba – Onitsha Gas Pipeline Project.

16. Which of these is false about Trans-Sahara gas project?

a. Project is a collaboration effort by Nigeria and Algeria to supply


gas to Europe b. The project will consolidate regional co-
operation and diversity gas supply to Europe c. The project team
has been constituted d. Feasibility study has not been
completed.

NIGERIAN GAS COMPANY LIMITED

Attempt all the questions by circling the right answer

44
1. Which of these is not key gas processing equipment?

a. Dew point unit b. Catalyst Cracking Unit c. Dehydration


Unit d. Oil Separator

2. Nigerian Gas Company has a Compressor station in which of the


following locations?

a. Aladja Station b. Qnne Station c. Egbin Station d.Eriemu


Station.

3. Which of the following fields does Nigerian Gas Company buy gas
from?

a. Aba b. Obrikom c. Utorogu d. Oredo

4. Which of the following is not a stakeholder in West African Gas


Pipeline (WAGP) Project?

a. SPDC b. Agip c. Chevron d. NNPC

5. Which of these statements is TRUE of Associated Gas (AG)?

a. It comes in high pressure b. It comes in low pressure


c. Contains little or no impurities

6. What does CNG stand for?

a. Composed Natural Gas b. Compressed Natural Gas


c. Compressed natural Gas

7. Which of these customers does not buy gas form NGC?

a. Dangote Steel Company b. Ajaokuta Steel Company


Limited

45
c. Dangote Cement Company d. Delta Steel Company
Limited.

8. One of the following is not a direct customer of Nigerian Gas


Company Ltd.

a. Beta Glass b. PHCN c. Dangote Cement Company


d. WAPCO.

9. Nigerian Gas Company Ltd is to be unbundled into:

a. Gas Marketing & Transportation Company b. Gas Marketing


& Producing Company c. Gas Production & Transportation
Company d. Gas Drilling & Gathering Company.

10. One of these is not an NGC gas sales and supply issue.

a. Debts b. Skilled manpower c. Pricing d. Vandalism.

11. Which of these is a direct Customer of NGC?

a. WAPCO and PHCN


b. ALSCON and Gas Link
c. Only Gas Link
d. All of the above
e. None of the above

12. What does WAGP stands for?

13. There are about 50 cases of recorded NGC vandalized pipeline in


2005.

True or False

14. Which of the following statements is/are correct?

a. Obigbo, Ikot Abasi and Alakiri pipeline are all eastern pipelines

46
b. The East-West pipeline system had already been inked for
flexibility of gas supply.
c. A and B are correct.

15. Which year was NGC incorporated? a. 1988 b. 1990

c. 1992

16. Which of the following statements is/are not correct about NGC?

a. NGC funds its operations from its gas sales and transmission
tariff revenues.
b. It uses its cash collection from these revenues to fund its
approved budgets.
c. Any surplus funds are remitted to Corporate
d. All of the above
e. None of the above.

17. List three (3) of NGC’s fourteen (14) direct customers:

18. Convert 200BSCF to MSCF

19. What does CNG stand for?

20. Which of these Oil Fields does not supply gas to NGC?

a. Obigbo North
b. Oredo
c. Oben
d. Makaraba

FUNDAMENTALS OF OIL & GAS EXPLORATION

47
QUESTIONS

1. The Nigerian Bitumen Company was granted the permit to explore


for bitumen in Nigeria after Shell D’Arcy
a. True
b. False
c. Don’t know
2. The Akata – 1 well was drilled by Nigerian Agip Oil Company in
1946
a. True
b. False
c. Don’t know
3. In gas utilisation – business, the quantum of gas reserve is the
most important.
a. True
b. False
c. Don’t know
4. Gas oil ratio is higher for non-associated gas than for associated
gas.
a. True
b. False
c. Don’t know
5. In PSC contract agreements, the contactor contributes only its
share of cost to the exploration activities
a. True
b. False
c. Don’t know

6. (a) What is petroleum and how can it coexist?

(b) What is the full meaning of ARPA and when was found.

7. Mention sources of energy required in seismic operations and


what is the preferred energy source and why?

8. What is the difference between 2D and 4D survey?

9. What are the necessary conditions for trapping petroleum?

48
10. What are the core businesses of IDSL?

Engr. J. O. Anuku

Manager, Planning

FUNDAMENTALS OF OIL & GAS E & P

QUESTION

1. Basic conditions for petroleum accumulation (Habitat) are:


a. Source Rock and Trap
49
b. Sedimentary Rock and Trap
c. Source Rock, Reservoir Rock, Cap Rock and Trap
mechanisms
d. Trap, Sedimentary Rock and seal.
2. Crude oil yield is least for the following environment
a. Sand
b. Carbonate
c. Shale
d. Bitumen
3. In gas utilization business, the most important aspect is:
a. Have enough reserves
b. Secure market
c. Develop infrastructure
4. NNPC was established before Nigeria joined OPEC
a. True
b. False
c. Don’t know
5. Which of these stages in Seismic operations are arranged in
chronological order?
a. Planning, Permitting, Surveying, Drilling, Recording
b. Permitting, Planning, Surveying, Recording, Drilling
c. Planning, Surveying, Permitting, Recording, Drilling
d. Surveying, Planning, Permitting, Recording, Drilling
6. Mention three NNPC SBUs and their roles in the E&P directorate.

7. (a) What is the full meaning of APPA and when was it formed?

(b) Name five Hydrocarbon Sedimentary basins in Nigeria

8. (a) What is Petroleum and how can it co-exist? Give one example
of each state.

50
(b) How can we confirm the presence of hydrocarbon in a location?

9. What are the cardinal objectives of IDSL?

10. Explain the difference between 3D and 4D?

QUIZ

1. What is a team?
2. State three ways teams can have effect on an organisation
3. Name four team member types
4. Mention any three reasons why teams fail and write a statement
for success.
5. Identify three roles a manager plays in ensuring team is effective
6. List and explain any three letters of the word PERFORM
7. List three types of teams

51
FUNDAMENTALS OF OIL & GAS EXPLORATION

QUESTIONS

1. The German consortium (the Nigerian Bitumen Company) was the


first oil company granted the visit to exploration for oil & Gas in
Nigeria
a. True
b. False
c. Don’t Know
2. Shell D’arcy drilled the first deep well IHUO-1 during the 2 nd World
War
a. True
b. False
c. Don’t know

52
3. Gas oil ratio is higher for associated gas than for non-associate
gas.
a. True
b. False
c. Don’t know
4. Nigeria has the largest natural gas reserve out of the first 10
countries with high gas reserve.
a. True
b. False
c. Don’t know

All Questions carry equal marks

20mins

16/03/2006

1. The cheapest and safest means of transporting petroleum


products in bulk is:
a. by sea b. by rail c. by truck d. by pipeline.
2. The first refinery was commissioned in:
a. 1975 b. 1963 c. 1965 d. 1966
3. The refining capacity of the first refinery is:
a. 36,000BSD b. 5.500BSD c. 35.000BSD d.
37,000BSD
4. What year was WRPC constructed and what was the capacity?
a. 1978 & 126B/D b. 1979 & 125 B/D c. 1978 & 125
B/D d. 1977 & 128 B/D

5. Interconnection of the four refinery was done in the year:

53
a. 1985 b. 1975 c. 1995 d. 1996

6. NNPC is presently made up of how many subsidiaries?

a. 12 b. 10 c. 11 d. 14

7. In determining the quality of PMS (Petrol), what should be primarily

considered?

a. RON b. Flash Point c. Pour Point d. Viscosity


8. The standard practice of batching different grades of products in a
multi-products pipeline is:
a. PMS-AGO-DPK b. ATK-AGO-PMS c. PMS-DPK-AGO

d. AGO-PMS-DPK

9. Mention three locations where NNPC Mega Stations are located.

10. The pipeline that carries crude oil from Escravos through Warri to
Kaduna is known as:

a. System 2A b. System 2D c. System 2C d.


System 2E
11. The key ratio of Accounting in an organization are store
keeping, problem solving and :
a. Administrative routines
b. Approval limit
c. Assistance on funding
d. Attention directing
12. Financial accounting is focused on providing information for
stakeholders while management Accounting is focused on generating
internal information for management. Yes or No?
a. Yes b. No
54
13. There are three main components of balance sheets, what
are they?
a. Asset liability, and owners equity
b. Asset liability, and Net worth
c. Asset liability, and Net Asset
d. Asset liability, and paid up capital
e. Asset liability, and Authorized capital
14. Not all the resources of a company is an asset, an example
of a resources that is not an asset is consumer. True/False

15. Processing staff from and advance in CHQ is a function of:


a. FAD b. Finance Dept. c. Account Dept. d.
Headquarters Account e. General ledger
16. Experts in the design and eletrivisustration of Account
System in CHQ presents on:
a. Duet and Project Dept.
b. Method and Production Dept.
c. Headquarters Account
d. Management Information System
e. General Accounts.

55
The New Depot Manager

You recently received a letter from the Human Resources Management


Division of ‘Nijda Oil Company’, informing you of your promotion to the
rank of Deputy Manager and an immediate redeployment to Anyhow
Depot as the Assistant Depot Manager.

Four weeks after assuming duty at the depot, you got a memo signed by
the Head, PPMC subsidiary informing you that management has made
you the Depot Manager (of Anyhow Depot) and this is to take effect in
the next 7 days. Consequently upon this, you are requested to report at
the head-office with an action plan of how you will transform a group of
poor-performing workers into a high performing team, so as to achieve
sales and distribution target of the depot.

Your Task

Enumerate steps you will take to transform the poor-performing set of


employees into a high-performing team.

Please Note

You are at liberty to make assumptions as to the challenges at the depot


that may have necessitated the poor-performance and allied issues not
mentioned in this case study.

56
NNPC CHIEF OFFICERS MANAGEMENT DEVELOPMENT
PROGRAMME

LEADERSHIP MODULE

TEST

April 18, 2008

Respond to all tasks or questions. Duration: hrs

1. Differentiate between management and leadership. What is


the need for both leadership and management skills in leading in
today’s organization?
2. What meaning do you make of these laws of leadership by
John Maxwell?
a. The Law of Solid Ground
b. The Law of Connection
c. The Law of Magnetism
3. As the leader of team ‘Super Performance’, you are to use
not more than five words each to give a status report of your
team’s experience and the style you will adopt in leading at those
stages as captured in the following table:

Life-cycle Stage Team’s Experience Leadership Style


Forming
Sterming
Norming
Performing

57
4. You were recently promoted to the position of a Deputy
Manager and made the Head of your Department; name and
describe the coaching model and steps you will take to bridge the
performance gap being experienced by one of your subordinates.
5. Explain the ‘ Dimensions of Leadership’ model of NNPC.
Treat the case in the attached document.

Please make your writing very legible.

58
GAS & POWER DIRECTORATE PRESENTATIONS ASSESSMENT
QUESTIONS

1. Which of the following best describes the aim of the National


Gas Master Plan (NGMP)?
a. Aims to define the intention of Government in respect of the
price of gas to be supplied to customers in the downstream gas
sector.
b. Aims to provide guideline for relevant institutional/structural
changes to support the delivery of the key value drivers and re-
align the gas sector to deliver in a sustainable manner.
c. Aims to develop the domestic gas infrastructure/market in
the downstream sector of the oil and gas industry.
2. The main Policy aspiration of the National Gas Policy is:
a. The accelerated development of the domestic gas sector as
a focal strategy for achieving the national aspiration of
aggressive GDP growth of 10% per annum.
b. Pricing regulation of Gas price, framework and infrastructural
development.
c. Fix penalty for non-compliance of gas supply obligation on
the Operators of the Nigerian oil and gas industry.
3. The Key purpose and benefit of the National Gas Policy is:
a. Develop and legislate new fiscal regime for gas projects
b. Develop licenses, regulations and code of operations in the
gas sector.
c. Define the intentions of government in respect of the pricing
of gas to be supplied to customers in the downstream gas
sector to enable the selective maximization of net revenues for
Nigerian gas.
4. The three (3) key objectives of the national aspiration from
the gas sector are:

59
a. Multiplier effect of gas in domestic economy,
develop/legislate a new fiscal regime for gas projects and
establish PSC terms for gas.
b. Multiplier effect of gas in domestic economy: optimizing
gains from gas export and secure a long term for energy (Gas)
utilization.
c. Multiplier effect of gas in domestic economy; finalize the draft
downstream gas legislation and develop domestic gas
infrastructure.
5. Which of the following best defines LNG?
a. Liquefied natural gas (primarily methane, CH4) converted to
liquid at about – 1610C for ease of storage or transportation
b. Liquefied Natural gas that take up 1/600 th the volume of
natural gas.
c. Liquefied natural gas (primarily methane CH4) converted to
liquid at about – 1510C for ease of storage or transportation.
6. What is PIB?
a. Petroleum Industry Bill (PIB) is the document OGIC issued
as a drat to the National Assembly in September, 2009 for
implementation.
b. Petroleum Industry Bill (PIB) is the document OGIC issued
as a draft to the National Assembly in September, 2006 for
ratification to become a bill.
c. Petroleum Industry Bill (PIB) is the draft document OGIC
initiated for onward submission through the Federal
Government to the National Assembly in September, 2009 for
ratification to become a bill.
7. Which of the following is the aim of the PIB?
a. Aims to achieve an amalgamation of the various policies and
drafting efforts into one harmonious whole, to create a
transparent and well-governed fiscal, legal and regulatory

60
environment, towards repositioning Nigeria, and ensuring
natural resource are used for the benefit of the citizenry.
b. Aims to achieve an amalgamation of the various policies and
drafting efforts into one harmonious whole, to create
employment and marketing opportunities for al Nigerians.
c. Aims to achieve an amalgamation of the various policies and
drafting efforts into one harmonious whole, to better manage
our Oil and Gas resources and unbundle NNPC.

8. The following are types of LNG Process Technologies and their Patent
owners; TRUE or FALSE.

i. Shell PMR – Designed by Shell...........................


ii. Cascade – Designed by ConocoPhilips...................
iii. APCI DMR – designed by Air Products & Chemicals
Inc.................

9. The following LNG Plants in Nigeria make use of the following

Technologies; TRUE or FALSE.

i. Bonny NLNG Trains (T1 – APCI DMR........................


ii. OK LNG – APCI X....................................
iii. Brass LNG – Cascade .................................

10. Align the following NNPC and Gas Value Chain activities into

UPSTREAM; MIDSTREAM and DOWNSTREAM activities.

i. IJV’s ..................... ii. NPDC....................... iii. PSC’s ...............


iv. NLNG............................... v. JV IPP’s....................................
vi. BLNG.............................. vii. LPG Marketing...........................
11. The Natural Gas Component that exists together with crude
oil and that which exists in its natural state in the earth crust is:
a. Associated Gas (AG) and Non-Associated Gas (NAG)
b. Non-Associated (NAG) and Associated Gas (AG).
c. Natural Gas (NG) and Hydrocarbon Gas (HG).
61
12. Which of the following in order of occurrence; is the typical
Natural Gas Composition?
a. Methane; Ethane, Pentane/Heavier C5+; Buthane; Propane;
Non-H/Cs: N2, H2O, Co2, H25, Hg e.t.c
b. Methane; Ethane; Propane; Buthane;
13. The following is “True” of Nigeria in Gas Reserve Ranking –
“Current Proven Gas Reserve”; ‘2combined Total Proven Probable”
and “possible reserve and Reserve Ranking Position Worldwide”:
a. 183 Id; 310 Id and 7th Position.
b. 187 Id: 300 Id and 7th Position.
c. 185 Id: 301 Id and 7th Position

14. Match the following under “POTENTIALS” and “BARRIERS” of the

Nigerian gas sector:

i. Pricing.................. ii. Security issues......................


iii. World’s 7th largest Gas Reserve ...................................
iv. Fiscal Terms/Legal Regulatory Framework .............................
v. High Grade Gas Quality .......................

15. Pick Five (5) units from the list below that constitute units of a typical

LNG Process Plant Facility:

i. Control Tower ii. Inlet facilities iii. Air Duct iv. Steam
Boiler Recovery Unit. v. Acid Gas Removal vi. Dehydration
vii. Hg Removal viii. NGL Recovery ix. Fractionation
x. Liquefaction xi. End Flash.

16. NNPC is to have how many JV IPP Power Plants with its IDC
Partners?

a. 5no. JV IPP Plants


b. 4 no. JV IPP Plants
c. 3 no. JV IPP Plants.

62
FUNDAMENTALS OF OIL & GAS EXPLORATION

QUESTIONS

1. 1st Nigerian commercial oil discovery was by:


a. SPDC
b. Shell – BP
c. Shell D racy
d. German Consortium
2. Nigeria joined OPEC in:
63
a. 1963
b. 1974
c. 1871
d. 1977
3. Nigeria oil Reserve base is:
a. 1.3 mm
b. 2.1mm
c. 35.3 billion

4. 40% of AG production in Nigeria is flared daily.

a. True
b. False
c. Don’t know

5. In gas utilization business, the most important aspect is.

a. Have enough reserves


b. Have enough reserves and secure market
c. Have enough reserves, secure market and develop
infrastructure to produce and transport.
d. Produce and transport to the international market.

1. Name five (5) of the seven Basins where HC can be found in Nigeria.

2. What is the origin of hydrocarbons and the transforming agents.

3. In detail survey, dynamite is used as one of the energy sources. Why?

4. Basic conditions for Petroleum Accumulation (Habitat) are:

a. Source rock and Trap


b. Sedimentary rock and trap
64
c. Source rock, Reserve rock cap rock and trap mechanism
d. Trap, sedimentary rock and seal.

5. Exploitation for oil & gas involves the following activities list in order of

occurrence.

a. Wild cat, Exploratory, Appraisal, Production


b. Appraisal, wild cat, exploratory, production
c. Production, exploratory, wild cat, appraisal.
d. Exploratory, Production, appraisal, wild cat.

PPMC COMPD

1. What is the full meaning of PPMC?

2. Where are the Area Offices of PPMC located?

3. Name 5 Depots & 5 Pump stations of PPMC.

4. What is the relationship between PPMC & the Refineries?

5. State the various means of transporting Petroleum products?

6. Define the following; PMS AGO DPK HHK.

7. Which Gas is PPMC distributing?

8. State 2 benefits of deregulation.

9. (a) What is multiproduct line operation?


65
(b) How do you avoid contamination during this operation?

10. Name 2 effects of Pipeline Vandalism

CHIEF OFFICERS MANAGEMENT DEVELOPMENT PROGRAMME

COURSE 061

PROJECT ECONOMICS AND MANAGEMENT TEST (15 MINS)

(Answer all questions)

Qu. 1: Which of these is an Economic Indicator used in evaluating

Projects?

a. Scope
b. Payback Period
c. Variation
d. Cost

Qu. 2: Which is not a characteristic of Operation?

a. Repetitive
b. Efficiency
c. Risk and uncertainty
d. Cash flows and Stable Resources.

Qu. 3: What is meant by IRR as an economic indicator?

66
a. Internal Rate of Rating
b. Internal Rate of Return
c. Internal Range of Return
d. Interest Rate of Return

Qu. 4: Which of these is not a good and effective Project Control


Process?

a. Review meetings with fixed agenda.


b. Report progress against the Plan
c. Formalize review meetings
d. Hold review meetings at only one level of planning hierarchy.

Qu. 5: Which is not a characteristic of Project?

a. Repetitive
b. Revolutionary
c. Finite
d. Unique

Qu. 6: Return on Investment (ROI) is defined as:

a. The rate of total profits to total investment


b. The ratio of total profits to total investment
c. The ratio of part profits to total investment
d. The ratio of total profits to overall profits.

Qu. 7: OPMT as used in Project Management represent:

a. Operations Planning and management Team


b. Owners Project Management Team
c. Owners Planning and Maintenance Team
d. None of the above.

Qu. 8: Project Management is defined as:

a. Process by which a project is executed to specifications and


completed successfully with all issues resolved amicably.

67
b. Process by which a project is executed and completed with
outstanding issues.
c. Process by which a project is executed and completed with
cost overrun and extended completion period.
d. Process of buying a completed building and making selling to
make quick gains.

Qu. 9: Which of these is not a function of a Project Manager in an


Organization like NNPC?

a. Delivering timely benefits, which justify the expenses within


the Organisation
b. Achieving company goals and objectives without strategy.
c. Achieving corporate objectives and strategies.

Qu. 10: Planning is very important and it requires answers to WHY,

WHAT,

HOW, WHO, WHEN, WHERE.

a. Undecided
b. None of the above
c. Yes
d. No

68
NNPC CHIEF OFFICERS MANAGEMENT DEVELOPMENT
PROGRAMME

OIL AND GAS BUSINESS ENVIRONMENT REVIEW AND NIGERIAN


ECONOMY (14/09/12)

Review Questions

1. Briefly describe why the business environment scanning is


necessary for all businesses.
2. The national income of a country is computed using three
approaches. What are these approaches?
3. To some extent it is true that the price of gas takes a cue
from the price of oil. What is responsible for wider dichotomy in
recent time?
4. How and why is Geopolitics influence on the oil and gas
market very important? State two examples.
5. Give two reasons for the increasing profile of shale gas.
Name three countries with significant shale gas potentials.
6. Mention the big three in the world energy mix. Petroleum
approximately account for what percentage and fossil fuels
generally account for what percentage.
7. State three objectives of government oil and gas industry
reform programme.
8. In a concise description, state how you can help transform
the oil and gas sector as a manager.

69
9. State two important challenges that the Nigerian oil and gas
industry face
10. Name two important energy sources (in the energy mix) for
the future with explanation.
11. In a concise description, state how you can help transform
the oil and gas sector as a manager.
12. State two important challenges that the Nigerian oil and gas
industry face
13. State three prominent economic parameters that will
determine cost of fund in your day-to-day operation with very short
explanation.
14. Name two important energy sources (in the energy mix) for
the future with explanation.
15. Renewable energy sources are expensive, Nigeria has no
comparative and competitive advantage in them. Nigeria therefore
should not be involved. Do you agree? Explain.

70
CHANGE

1. (a) What is change?

Answer: change is the art or process of altering a situation from what is it


or what it ought to have been if left alone.

OR

A compatibility of a strained body to recover its size and shape


after being subjected to stress.

OR

To make the form, content or future course of something differs


from what is or from what is would have been determined if left
alone.

b. Name three characteristics of change.

i. It alters the status-quo

ii. The people but not the leaders determine the course of

change.

iii. The leader guide the people through the change.

2. a. Name 4 emotional states in the Journey through change.


i. Comfort and Control
ii. Fear, Anger and Frustration
iii. Inquiry, Experimentation and Discovery
iv. Learning, Acceptance and Commitment.

71
b. Name 2 Characteristics of any 2 change?

i. Comfort and Control

a. People are comfortable b. People are in control

ii. Fear, Anger Resistance

a. People are angry b. people are


frustrated
3. As a leader what 2 things will you do to help your staff get
through any 2 of the emotional stages?
i. Fear, Anger and Resistance
a. Acknowledge people’s pain, perceived loses, and
anger.
b. Don’t try to talk to people out of their feelings.
c. Discus ways to solve the problems people see with the
change.
d. Strive to address their perceive losses.
ii. Comfort and Control
a. Sell the need for change, sell the pain and
consequences of not changing.
b. Let people know it will happen – one way or another.
c. Acknowledge their successful past.
d. Get people’s attention and immerse people in
information about the change.
iii. Inquiry, Experimentation and Discovery
a. Give people permission to find their own solutions,
after explaining the problem to them.
b. Offer solutions and encourage team work
c. Encourage people to take risks.
d. Give people freedom and direction.

72
4. In managing change what steps will you take in the following
situation?
a. Identifying what needs changing
i. Tell the people the need for change
ii. Make them understand the consequences of not
changing
iii. Tell them the effects and benefits of change
b. Introducing the Change
i. Co-create the vision
ii. Listen, Listen, Listen
iii. Encourage team work
c. Consolidating the change as standard practice
i. Document process of change
ii. Motivate people to be more committed to the change
iii. Develop new reward process in line with the change
iv. Monitor the performance of the change.
5. Give 3 reasons why people resist change:
a. Fear of loss of their job
b. Mistrust for those who lead
c. Fear or loss of control of their present situation.
d. Some people disagree on the change
e. Some people don’t tolerate change well.
6. Are staff who resist change always undesirable? Give 3
benefits or 3 disadvantages of change resisters?
a. Change resisters are not always undesirable because:
i. Their tough questions can improve and strengthen the
change
ii. They identify the problems that need to be solved first.

iii. They force change leaders to think before they


implement the change.
iv. They clarify the problem
v. They let us know opposes the change
vi. They slow down the change
vii.They might be right, it is a dump ideal.
7. Name 2 External and 2 Internal Forces of Change
2 External fForces of change are:

73
i. Technology. ii. Government policies

2 Internal forces of change are:

i. Leadership and vision ii. Performance failures


8. What is resilience in the context of change, name 2 things
you can do to improve change resilience.
a. Resilience is the ability to recover from or adjust easily to
misfortune or change. OR the capability of a strained body to
recover its size and shape after being subjected to adversity or
stress.

Form of mind and heart that always seek for mutual benefits in all human
relationships philosophy that allow agreement for solution to be mutually
beneficial/satisfying. A scenario that makes parties feel good about the
decision and are committed to action plan it sees situation as co-
operative rather than competitive.

It is not you or my way it is better and higher way.

74
Other paradigm of human interaction are; win/lose, lose/win, lose/lose,
win win.

Thinking win-win is good to adopt for your home, office, community.

5TH HABIT SEEK TO UNDERSTAND THEN BE UNDERSTOOD

It is the interpersonal communication which postulates that you first seek


to understand from the perspective of the party talking before you.

Make the person understand the subject in contention from your view.

Seeking first to understand refers to empathic listening which is listening


with aim of understanding issues from the perspective of the person’s
talking.

It requires that you fully thoroughly understand the person emotionally


and intellectually.

6TH HABIT SYNERGIZE

 It means that the whole is greater than the sum of the part.
 This denote that the relationship which the part have to each other
is a part and of itself.
 Combine the strength of people through positive team so as to
achieve goals no one person could have done it alone.

75
 The essence of synergy is to value difference and respect them,
build on their strength to compensate for weakness.
 It is based on the principle of creative cooperation.

7TH HABIT SHARPEN THE SAW

It is the principle of balance self-renewal.

Balance and renew your resources, energy and health long-term


effective lifestyle.

Sharpening the saw involves the following:-

 Physical exercise, stress management


 Mental activities, such as reading, writing and planning e.t.c.
 Spiritual issues like meditation.

MODEL TEST – ANSWER ALL QUESTIONS – Time Allowed 45


minutes

CANDIDATE NUMBER _______________

1. What do you think is the main cause of the dip in oil reserves
in Nigeria?
a. Divestment by some of the IOCs
b. Limited investments in the upstream sector
76
c. Pipeline vandalism
d. Exhaustible nature of oil.
2. Which of the following statements is NOT true about the
Nigerian Oil & Gas Sector?
a. The Oil & Gas Sector is the largest contributor to Nigerian
GDP
b. Nigeria is more of a gas province than oil
c. Nigeria holds the second largest convention oil reserve in
Africa.
d. Europe is currently the largest importer of Nigerian crude.
3. What do you understand by the term ‘OPEC’s Spare
Capacity?’
_____________________________________________________
_____________________________________________________
4. The benchmark crude to which most Nigerian grades are
priced is:
a. WTI
b. Brent
c. Bonny light
d. OPEC Basket.
5. The level of global E & P activities is indicated by:
a. Global Purchasing Managers Index (PMI)
b. Global GDP
c. Global Manufacturing Index
d. Global RL Count.
6. Which country has the largest Shale gas reserve?
a. USA
b. Russia
c. Qatar
d. China
7. Which country is the major importer of Nigerian LNG in
2012?
a. Span
b. USA
c. China
d. Japan
8. List four (4) sources of Renewable Energy (1)
_______________
77
(2) _________________ (3) ____________ (4) _____________
9. Country with the largest conventional oil reserve is:
a. USA
b. Russia
c. Saudi Arabia
d. Venezuela
10. NNPC is currently facing financial challenges. As a potential
manager, mention two oil and gas related new business ventures
you would recommend for the corporation to initiate in order to
improve it revenue?
_____________________________________________________
_____________________________________________________
____________________________________________________

NNPC LEADERSHIP DEVELOPMENT PROGRAMME

FINAL QUIZ

Instructions:

ANSWER ALL QUESTIONS

KEEP YOUR ANSWERS BRIEF AND TO THE POINT

1. In three (3) sentences, describe your understanding of


Leadership.
2. What is your understanding of the 7DL? Briefly explain how
you would implement any two (2) of the elements.
3. What are the influencing Styles you can use to lead your
associates to light performance?
4. IN five (5) sentences, show how you can be more strategic
and less routine as a manager.

78
5. List two (2) techniques for Coaching. Write a short note on
any one of them.
6. Briefly show how you intend to align your learning points
from this course to achieving NNPC corporate goals.

NNPC CHIEF OFFICERS MANAGEMENT DEVELOPMENT


PROGRAMME

LEADERSHIP MODULE

TEST

Answer all questions, Duration: 1 ½hrs

1. What are the distinctions between Management and


Leadership? Explain the relationship between leadership skills and
managerial skills in contemporary business organisations, if any.
2. Mention the leadership style you will adopt to build or lead
(as the case may be) teams at each phase of team life-cycle as
follows:
a. Farming
b. Storming
c. Norming
79
d. Performing
3. Discuss why you think coaching others is important to our
corporation. Describe the four Cs of Coaching.
4. Share your understanding of NNPC ‘7 Dimensions of
Leadership’ model.

DURATION: 15 MINUTES

DATE: 21ST SEPT. 2006

1. Petroleum products was introduced into the Nigerian market


in what year and by which marketing company?
a. Shell b. BP 1907 c. Mobil 1907 d. PPMC
1970
2. The second cheapest and safest means of transporting
petroleum products in bulk is:
a. by trucks b. by rail c. by sea d. by pipeline
3. Crude Oil was first discovered in commercial quantities in
Nigeria in which town and year?
a. Bonny 1951 b. Okrika 1956 c. Olobiri 1957 d. Owaza
1958
4. Interconnection of the four refineries was done in the year:
a. 1985 b. 1975 c. 1995 d. 1996.
5. In determining the quality of DPK (Kero) what should be
primarily considered?
80
a. RON b. Flash point c. Pour point d. Viscosity
6. The standard practice of batching different grades of
products in a multi-products pipeline is:
a. PMS-AGO-DPK b. ATK-AGO-PMS c. FMS-DPK-AGO
d. AGO-PMS-DPK
7. Mention three locations where NNPC Mega Stations is
located.

8. The pipeline that carries petroleum products from Kaduna to


Gombe is:
a. System 2A b. System 2B c. System 2D d. System
2E
9. One negative impact of vandalization is:
a. product availability b. more revenue c. products scarcity d.
none of these
10. Into how many categories are vessels for transporting
petroleum products classified?
a. 9 b. 7 c. 6 d. 16

81
NIGERIAN GAS COMPANY LIMITED

EVALUATION QUESTIONS FOR COMD COURSE 046 RESTORERS

Name: _________________SBU: _____________ ID. No._________

Instructions: Attempt all the questions by Underlining the correct


answers.

1. Which of the following is not a Gas Processing Unit or


equipment?
a. Scrubber Unit b. Filter Separator Unit c. Dispenser Unit
2. What does CNG stand for in the use of Natural Gas for
Automobiles?
a. Compressed Non-associated Gas b. Condensed Natural Gas
c. Compressed Natural Gas
3. Which of these sectors consume over 80% of NGC’s Gas?
a. Cement Sector b. Fertilizer Sector c. Power Sector
4. Nigerian Gas Company Ltd is to be unbundled into:
a. Nigerian Gas Marketing & Transportation Companies
b. Nigerian Gas Pipeline & Marketing Companies
Nigerian Gas Production & Transportation Companies
5. Which of the following Strategic Projects is On-going?
a. Ajaokuta – Abuja – Kaduna Gas pipeline Project
b. East-West Gas Pipeline Project
c. West African Gas Pipeline Project
6. What is Nigeria’s current estimated Total Natural Gas
Reserve?
a. 156 TSCF b. 187 TSCF c. 178 TSCF
7. Which of the following fields does Nigerian Gas Company
buy gas from?
a. Yenegoa b. Bonny c. Utorogu
8. Which of the following is not a stakeholder in the West
African Gas Pipeline Project.
a. SPDC b. Agip c. Chevron d. NNPC

82
PPMC WARRI AREA

QUESTION PAPER

1. PPMC Warri Area is one of the six administrative Areas in


PPMC
True or False
2. Warri Area gets crude supply from Escravos only. True or
False
3. Basic light comes from SPDC (True or False)
4. System 2C Pipeline runs from Warri to Benin (True or False)
5. What is the full meaning of IBP (Import Berth Platform,
Import Barge Platform)
6. What size of pipe covers crude from Warri to Kaduna? (24
inch, 12inch, 26inch)
7. Underline the pump stations along the crude line (Warri,
Benin, Auchi, Abaji).
8. What is product interface (Area of mixture between products
in the pipeline) True or False.
9. Three petroleum products transported through PPMC
pipelines are:
PMS, DPK, AGO (True or False)
10. What in your opinion is the major handicap in PPMC
operations (Pipeline vandalism or frequent transfers).

1. What measure should be taken in the Nigerian Oil and Gas


Industry to ensure that capacity building in engineering and
fabrication is increased in the Oil and Gas Industry?
83
2. Strict compliance with the local content initiative of the Federal
Government, Deployment of the State of the Art, I.T, Infrastructure
and Human Resources Development.

3. What are the major challenges of PPMC?

1. Pipeline vandalism

2. Subsidy on imported products – loss in revenue

3. Cash crunch

4. Obsolete/old equipment

5. Continued encroachment on pipeline right of way

6. Lack of prerequisite number of personnel

7. Unscheduled shutdown of the refineries which results in


disruption of products supply.

8. Difficulty in establishing letters of Credit for Offshore purchase of


critical spare parts.

9. Frequent invitation by members of the National Assembly

10. Favour seekers from powerful and influential public.

It is widely alleged that PPMC staff connive and aid pipeline


vandals in their nefarious act of vandalism.

84
Pipeline Vandalism is a criminal offence for which nobody is immune
against. Available records have shown that over 5000 (five thousand)
arrests have been made across the country ad to date, no PPMC staff
have either been arrested or implicated. The allegation is therefore
unfounded.

It is also believed that PPMC Management especially those in


Marine or Supply and Distribution aid and abet demurrage on
coastal Vessels that supply products to the country.

Demurrage are paid directly to ship owners whom neither staff nor
Management have access to. Nigeria also charges the lowest
demurrage as its demurrage calculations are based o n (AFRA) Average
Freight Rate Assessment. London tanker brokers panel as against the
Spot rate charge (Platts). The difference between the two is about
10,000 USD. Ship owners are usually reluctant to come to Nigeria,
because of this price differential. Again a number of agencies have roles
to play before a vessel is discharged such agencies include NPA,
Customs, DPR and Navy.

Product allocation is widely believed to be a source of quick and


easy money in PPMC. How can one get this product allocation?

There are different types of products. The white products i.e. PMS –
Petro, HHK – House Hold Kerosene, ATK – Aviation, Turbine Kerosene
AGO – Diesel. These are allocated to Major and independent Marketers.
They sell these products in their various outlets.

However, in the past these Marketers use powerful and influential


members of the public to obtain allocation for products they do to
actually need it. There are other products mainly for industrial users who

85
have operational facilities. These products such as LPFO, SRG, and
Bitumen & LPG are allocated to users directly. However, some of these
industrial users prefer to sell the allocation instead of using the product
in their factory. Machinery has been put in place to identify specific
industries engaged in this bad practice for appropriate sanction HPFO is
mainly for export.

How many Pump Stations does PPMC have in Nigeria?

PPMC has15 Pump Stations out of which

8 are standing alone Pump Stations

3 are tied to the Refineries and

4 are tied to the Depots.

Does PPMC transport different products through different pipeline?

PPMC transport all refined products through the same pipelines except
Mosimi – Satellite product line where you have different pipelines for
different products. A different pipeline is used for transporting Crude.

Does PPMC own and operate Product Shipping Vessels?

PPMC only chatter Vessels to Ship products. It also owns some Vessels.

How does PPMC secure her pipelines?

PPMC secure her pipelines through the use of Community guards


Nigeria Mobile Police Force, Nigeria Military National Security and Civil
Defence Corp also assist.

How does PPMC distribute products to the riverine areas?

86
PPMC distributes products to the reverine areas through floating Mega
Stations and some filling stations with authorized licence to sell
petroleum products in the Area.

Does PPMC market LPG?

Yes PPMC markets LPG (Liquefied Petroleum Gas)

Does PPMC also export petroleum products?

Yes PPMC exports. HPFO and sometimes other products when they are
surplus.

Does PPMC market Crude Oil?

No PPMC does not market Crude Oil.

Apart from the use of pipelines, how does PPMC transport her
products?

PPMC transports products using road tankers and coastal vessels.

How can one buy Kerosene from PPMC?

One can buy Kerosene from PPMC only if one has authorized storage
facility and is a registered marketer with PPMC.

Why does PPMC grant credit facility to some marketers?

PPMC grants credit facility to some marketers it adjusted to be credit


worthy in terms of their capacity.

What are the efforts put in place to reduce high demurrage in


relation to importation of Petroleum Products?

87
Provision of N3.00 by Petroleum Product Pricing Regulatory Agency
(PPPRA) to pay for Private Depots facilities in the interim. This is to
enable big vessels discharge on time and depart.

How do we determine the Government subsidy?

The total landing cost ex-filling station minus fixed pump price by PPPRA
plats.

What is PPMC doing to encourage people to use liquefied


Petroleumgas (LPG) and what is the PPMC price?

PPMC is carrying out a campaign to encourage members of the public


through participation in Trade fairs and exhibitions. PPMC price is
N55,56 per litre.

What is the volume of LPG in 12,5kg cylinder?

21 875 litres.

What is PHRC installed capacity?

PHRC 210,000bp/d

What are the products of PHRC?

PMS AGO, DPK fuel Oil and LPG.

What are the factors that hamper PHRC smooth operation?

Mainly aged parts infrequent TAM and activities of the militants.

What is the production capacity of WRPC?

125,000bp/d

What is the acronym NETCO?


88
National Engineering and Technical Company Limited, it is a subsidiary
of NNPC

What gave birth to NETCO and in what year was it established?

The drive for Federal Government to own and have an indigenous


engineering capability to design and build plants and facilities for the
nation’s oil and gas and other allied industries. Also it is the premier
indigenous engineering company with strategic vision of providing basic
and detailed Engineering, NETCO was established in 1989.

What are the contributions NETCO renders to NNPC and Nigeria?

1. Rendering services in the oil and gas industry;


2. Feasibility studies conceptual design, basic and detailed
engineering design.
3. Procurement, construction, supervision and project management
4. Quality assurance quality control and environmental consulting
5. Facilitation of local content.

When did NETCO commence commercial operation?

August 1990

Who are NETCO major clients/customers?

Exxon Mobil, Chevron, Shell, AMEC, KBR, Nigeria Agip Company,


Salpem, Addax, TSKJ Consortium, TechnipCofilexip, NLNG, Ecergy
among others are the main clientele of NETCO.

What is the meaning of NGC?

Nigerian Gas Company Limited. It was established in 1984, with a vision


to be the preferred Gas Company to its present and future customers.

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Natural gas! Where do you get it from?

Natural gas is derived from crude oil wells and natural gas wells
underground the bowels of the earth in the reservoir.

NNPC FAQ

What is community relations and how is it done?

Basically, community relations is the process of building and sustaining a


good relationship between NNPC and its host communities in order to
provide a conducive environment for its operations.

Regular meetings are held with the communities to identify their needs
and decide how best to assist them in actualizing their aspirations.

What is sustainable community development?

Any community relation strategy that is adopted must be sustainable


enough to meet the requirements of the present generation without
compromising the rights of the future generations to available resources.

Programmes and infrastructure must be such that they are self


sustaining over time and adopt a holistic approach that recognizes the
need to sustain the environment and the involvement of communities in
the decision making process.

It seeks to provide a framework that gives impetus to the communities to


drive and take ownership of the development process.

What is CSR and how does it work?

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It means Corporate Social Responsibility. CSR is just another name for
good corporate citizenship where a corporate organisation endeavours
to identify and meet ht eh social needs of communities in its area of
operation. This may be in the form of community assistance,
infrastructure development or human capacity building.

How are the projects for any particular community selected?

Basically, all NNPC strategic business units (SBUs) or subsidiary


companies are required to set up a Joint Community Relations
Committee (JCRC) with their host communities. It is the responsibility of
this committee to deliberate and select viable and sustainable projects
for their communities subject to available funds.

Usually a basket of possible projects is developed and prioritized.


Selection is often based on the order of priority for the identified projects.

Is there any legislation that compels oil and gas companies to


provide assistance for their host communities?

There is currently no legislative backing for community based


programmes and projects embarked upon by oil and gas companies in
Nigeria. It is purely at the discretion of the operating companies.
However the proposed oil and gas industry reforms will address some of
these issues in the Petroleum Industry Bill (PIB) which is currently before
the National Assembly.

What is the relationship between National Petroleum Investment


and Management Services Division – NAPIMS and the Commercial
and Investment Division of NNPC?

91
National, Petroleum investment and Management Services (NAPIMS) is
the Corporate Strategic Unit (OSU) that manages the Federal
Government’s Investment in the upstream Petroleum Industry while the
Commercial Investment Division manages NNPC core investments in
the service and Downstream sector.

What is renewable energy?

Renewable is energy from a source which can be managed so that it is


not subject to depletion in a human time scale.

What is E10? How is it different from PMS?

E10is a blend of 10% by volume Ethanol and 90% by volume Gasoline,


E10 gasoline (also referred to as Gasohol) differs from PMS in that it
contains oxygen which results in more complete fuel composition
thereby reducing harmful emissions.

What is the acceptability level of E10 as a form of fuel from the


consumer and Environment stand points?

E10 is an environmentally friendly form of fuel that has been very well
accepted in other countries, e.g. Brazil, India, Thailand, USA, Germany
etc. The key to successfully market E10 is to prevent water
contamination These procedures will be applied all along the value chain
from the export terminal to the import terminal to the depot and service
stations storage tanks. Trucks and pipelines will also be subject to new
procedures. Here, proven quality assurance procedures developed by
Petrobras will come in handy.

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How will PPMC role be affected by the introduction of E10 to the
Nigerian Market?

Nothing really changes at least in the early stages except that with the
introduction of E10, PPMC now has a new supplier it needs to interact
with, i.e, the import traders. Refineries will continue to supply PPMC
based on same processes as before however there may be the need to
adapt refinery facilities to handle ethanol especially when the
programme is expanded in terms of how supply and demand
management processes are concerned there will be no change.

What is the colour of E10?

The colour of E10 is green connoting environmental friendliness.

What is Green House Gases (GHG)?

GHGs are gases such as carbon mono-oxide and carbon dioxide whose
presence in the atmosphere results in the earth’s surface being warmer
than it would otherwise be (Global warming).

Why make Ethanol from Biomass?

The essence of making ethanol from biomass is to integrate the


Agricultural sector with the Petroleum Sector of the economy. This would
enable Nigerians reap the benefits of job creation.

What is the yield of ethanol from Biomass?

One (1) ton of sugarcane yields approximately 95 litres of Ethanol while


one (1) ton of cassava can yield up to 50 liters but sugarcane
fermentation is easier than cassava.

What is PPMC?

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The Acronym PPMC means Pipelines and Products Marketing Company
Limited. It was incorporated in Nov. 1988 as a wholly owned subsidiary
of NNPC. It commenced operation in Jan. 1989.

What is the relationship between PPMC and NNPC?

PPMC is a subsidiary of NNPC, it is a Federal Government Corporation,


created by the merger of Nigeria National Oil Company (NNOC and
Ministry of Petroleum Resources through decree 33 of 1977.

What are the major functions of PPMC?

PPMC supplies Crude Oil to Refineries for refining and evacuates


Petroleum Products from the Refineries for distribution to the domestic
market. It also ensures that daily National demand for petroleum
products are met by augmenting local supplies from Refineries with
import. In addition, PPMC markets other special products such as
HPFO, LPFO, Bitumen etc.

How can one be a Marketer of PPMC’s products?

Marketers are first licenced by DPR, armed with the licence bulk,
purchase agreement is entered into with PPMC.

How can one get allocation for Petroleum Products like LPFO,
HPFO, Bitumen etc?

LPFO is Low Pour Fuel Oil mainly used in industries as fuel for
generation of power or for firing their heaters. Allocation is made to
industries through Marketers. HPFO is mainly exported while Bitumen is
allocated to construction companies as well as the FMWH, SWH etc.

94
How can one set up a filling station and begin to get products from
PPMC?

The first port of call will be the DPR which will license the prospective
marketer and then sign bulk purchase agreement with PPMC.

What is the National Demand for Petrol, Kerosene, AGO, LPG and
Aviation Kero?

Petrol or PMS is about 30 million litres per day

AGO = 12 million litres per day

DPK = 8 million litres per day

ATK = 2 million litres per day

LPG = 192,000 Kg per day 15,360 cylinders of 12.5kg capacity

How many depots does NNPC have and why are some of these
depots not functioning?

We have 22 depots across the country. Some are not functioning due to
lack of products occasioned by pipeline vandalism and other supply
challenges.

Why is Nigeria always experiencing fuel scarcity and what could be


done to find a lasting solution?

Inadequate supply of products due to frequent breakdown of the local


refineries, incessant pipeline vandalism and bureaucratic delays in
discharging imported products, strike actions by labour unions, product
hoarding and diversion by unscrupulous marketers, Government policy

95
on subsidy, Dependence or imported products and changes in market
fundamentals of Crude Oil and Refined products in the international
markets.

What is PPMC dong about the incessant pipeline ruptures and


vandalism with its attendant implications on life, property and
environment?

Integrity survey of the pipelines is being carried out to determine those


needed to be change due to age. Government is also currently
considering coming up with a master plan on pipelines protection .
Ensuring that PROW is clearly delineated. Also, Nigerians need
education and enlightenment to appreciate the importance for the
protection of the pipelines and other public facilities.

Safety is paramount in the Oil and Gas Industry, what obtains in


Pipelines and Products Marketing Company Limited?

PPMC has a full-fledged department with responsibility for enforcement


of HSE Industry Regulations with Slogan “SAFETY FIRST” supported by
an annual safety week awareness campaign.

The constant increase in the price of crude oil in the international


market is making some major users of the Product (Japan and the
likes) to source for an alternative source of energy, what is your
position on this?

PPMC will always be relevant in the transport energy sector, since it is


already keying into the biofuel development.

Some investors are apprehensive about the Niger Delta crises,


what do you think government should do to curb the crises?

96
Government is already addressing the issues with emphasis on the
development of the region through a comprehensive Niger Delta Master
Plan. Besides, Government recently established a Ministry of Niger Delta
to coordinate development of the oil producing region. This is in addition
to the Niger Delta Development Commission (NNDC) which has been in
existence close to a decade and currently making appreciable impact in
the lives of the people of the Niger Delta. Above all, Government also
recently granted amnesty to the militants in the region, a unique move
that may enhance peace in the region.

Corporate Social Responsibility (CSR) has become a vehicle to


attract goodwill and attention to an organisation, are you doing
anything in this regards?

PPMC is a responsible Corporate Organisation which has identified with


its Host Communities through community assistance & sustainable
development projects. It also carries out special programmes aimed at
endearing her to host Communities.

97
QUESTIONS FOR COMD PROGRAMME

Instruction: Answer any Ten (10) of the Twenty (20) Questions

1. NGC means Nigerian Gas Company. True or False

2. Expired LPG cylinders are safe for use and may not cause
accident.

True or False.

3. Hydrocarbon Services of Nigeria (HYSON) is not a subsidiary of


NNPC.

True or False

4. What is the vision of NGC?

5. Corporate NNPC supervision of NGC is through the GED R & P.

True or False

6. NGC was unbundled in years 2005. True or False

7. Which of the following is not a core activity of NGC?


98
a. Transmission of natural gas

b. Marketing of natural gas & its derivative nationally & within the
ECOWAS sub-region

c. Development and recommendation of policy on gas utilization


and pricing.

d. Only B and C.

e. None of the above

8. First commercial exploitation of Oil was in:

a. 1956 b. 1957 c. 1958 d. 1959.

9. Which of these is not key distributor of gas?

a. Falcon

b. Agip

c. Gaslink

d. SNG

10. Which of the following statement is/are correct?

a. NGC has compressors stations which have been leased out to


SPDO

b. MSC stands for Million Standard Cubic Feet.

c. NGC produces gas

d. A & B only

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e. All of the above.

ATTENTION, CHECK YOUR NOTES THAT THESE ANSWERS ARE


CORRECT!

Q: State the man difference between problem solving and decision


making.

A: Decision making starts where problem solving stops. Problem solving


looks at the past and decision making looks at the future.

Q: List 2 problem solving and 2 decision making styles

A: Problem solving styles: oriented, I/we concept

Decision making styles: instructing, persuasive

Q: List any 2 factors that enable you choose the styles

A: Level of maturity, constraints involved.

Q: What is pareto analysis?

A: ability to prioritise from various important tasks. Act first thing first.

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Q: State 3 steps in false field analysis

A: Itemise problems, give a weight no score

Q: If you have a different task from five different bosses, what is the
most suitable tool to use?

A: pareto analysis

Q: Which tool is suitable for describing a process or a project?

A: Process charting

Q: What is (i) creativity, (ii) dual thinking?

A: (i) Doing something differently from the past (ii) Seeing the basic and
making additions to create something new.

Q: why is the six hat technique important?

Q: List the six hats and state each of their functions

A: White-create emotional balance

black analyse criticise and obtain the best green.

blue use for processing

red.

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1. Name three (3) NNPC core values that you know.

_____________________________________________________

_____________________________________________________

_____________________________________________________

2. Symbols and Power structure are elements of an organisation’s


culture. T/F

3. The size and nature of an organisations workforce has nothing to


do with its culture. T/F

4. Artefacts, include office arrangement and employee behaviours in


organisation culture. T/F

5. NNPC stakeholders are limited to customers, government, local


community. T/F

6. The promotion of Safety and environmental protection is the


exclusive obligation of NNPC employees. T/F
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7. It is unethical for an employee of NNPC to do any business directly
or by proxy with NNPC. T/F

8. State three observed behaviours that show that NNPC does not
act in accordance with its core values.

_____________________________________________________

_____________________________________________________

9. Mainly top down Communication in NNPC is a progressive cultural


practice. T/F

10. Mention the three roles of manager in promoting positive


organisational culture, values and business ethics.

_____________________________________________________

_____________________________________________________

11. NNPC’s performance in capital expenditure is below average. T/F

12. NNPC’s Anti-Corruption Unit was set up in year __________

13. Business Ethics is currently not part of NNPC Corporate


governance. T/F

14. Implement conflict of interests/business ethics declaration is


practiced by companies wishing to institute a high ethical
environment. T/F

15. Business ethics is a tool for helping managers to make choices


that are often difficult. T/F

103
CHIEF OFFICERS PROGRAMME MOSIMI JULY 10, 2012

Lecture Title: LINKING GLOBAL OIL AND GAS BUSINESS


ENVIRONMENT

REVIEW AND THE NIGERIAN ECONOMY

MODULE TEST – ANSWER ANY FIVE QUESTIONS – Time Allowed


1hour

1. a. What is the basic relationship between oil and gas?

b. Discuss three ways in which gas is utilized in Nigeria to create


wealth in the economy and also educe environmental pollution

2. Can a weak global economy have an impact on the performance


of the Nigerian oil and gas industry? Briefly discuss.

3. Considering the dynamics and challenges of the oil and gas


industry, what skills should a potential manager possess for
effective job performance?
104
4. a. Briefly explain the term “Upstream activities” to a non oil industry
worker.

b. List some basic equipments and facilities used in the upstream


sector.

5. NNPC is currently facing financial challenges. As a potential


manager, what oil and gas related new business ventures would
you recommend for the corporation to initiate in order to improve
its revenue?

6. a. What is renewable energy?

b. List three types of renewable energy

c. State three benefits of renewable energy

NIGERIAN NATIONAL PETROLEUM CORPORATION

Chief Officers Management Development Programme Class 071

Corporate Culture and Business

Ethics Test

INSTRUCTIONS

1. Answer all questions

2. Time Allowed is 20 mins.

We wish you success


105
Sept. 11, 2012.

1. List five (5) roles of a petroleum economist

2. The following are the major roles of economics in the E&P Process
(3 correct answers):

a. Analysis

b. Evaluation

c. Procurement

d. Financing

e. Decisions

3. The following are examples of capital expenditure:

a. Hired office building and housing

b. Development wells

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c. Pipelines and flow

d. Leased vehicle

4. The petroleum Economist estimate value of alternative and select


options that best optimize corporate objectives.

a. True

b. False.

5. Oil and gas project economics is perform in order to:

a. Justify exploration projects

b. Make acquisitions

c. Discourage investment

d. Corporate Budgeting

6. Name two major petroleum fiscal arrangement in Nigeria

7. Differentiate between JV and PSC using the following Headings:

i. Ownership

ii. Funding

iii. Profit Sharing

8. Name three (3) petroleum Act and Regulations in Nigeria.

9. What are the types of financing available to a business? Give two


(2) examples each.

10. Mention five (5) sources of project uncertainty

11. What is the acronym TECOP?


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SUPPLY CHAIN MANAGEMENT

1. What is the % spend on goods & services in a typical


conglomerate?
2. What is Nigeria’s 2013 budget?
3. Name the top 3 highest spend commodity in your SBU.
4. What is the official book of records of NNPC?
5. What is the highest awarding body?
6. What is the value of excess stock in NNPC?
7. What is the % of duplication in NNPC stock?
8. Which government body manages the public procurement
Act?
9. What is EOQ?
10. Which entity is bound b the Public Procurement Act?
11. Supply chain management process is the coordination of
procurement, logistics, contracting.

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12. Absolute responsibility of public procurement Act resides in
who?
13. What is the penalty for non-compliance to public
procurement Act?
14. Price is the______ of the iceberg.
15. Name three (3) things that must be present in supplier
evaluation.
16. What is SAP?
17. SUN is NNPC official book of record. True/False
18. ESS/MSS; what is the full meaning?
19. There is strong commercial correlation between PIB, SCM
and SAP. True/False.

SUPPLY CHAIN MANAGEMENTName three (3) ways to invoke


Nigerian content in a contract.

1. Large vendor base improves procurement cost. T/F


2. NNPC is a top quartile entity practicing cost effective
procurement. T/F
3. Name the six chevron of supply chain.
4. Name one (1) challenge each in the supply value chain
5. What is Nigeria’s 2012 budget?
6. What is the % of excess stock in NNPC inventory?
7. The value of supply can be set aside to favour Nigerian
content. Yes or No?
8. Name five (5) criteria for evaluating a tender.
9. Define the mathematical equation for EOQ
10. Which entity is bound by the Public Procurement Act 2012?
11. Where should BPP situate in your opinion?

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12. Name three (3) commodities of highest spend in the
upstream business.
13. What is the average number of vendors in NNPC refineries?
14. What is the proportion of price when determining total cost of
ownership?

LEADERSHIP COMPETENCY OBJECTIVE TEST

DEVELOPING EMOTIONAL INTELLIGENCE COMPETENCIES

1. “Having academic intelligence (IQ) gets you hired, but


lacking.............. gets you fired.”
2. True or False: The brain is not plastic.
3. In order for a new behaviour to last, you have to ____ it
enough to make it permanent.
4. The term that describes a healthy concept of self is called
______
5. The most important thing you can do to build social
awareness is_
6. EQ is necessary for success at work and home. True or
False.
7. Managing your emotions is a full-time job. True or False
8. The true measure of leadership is ___________________
9. IN building your Emotional intelligence skills, the following
action should be taken EXCEPT one:
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a. Keep surveillance on your mind.
b. Practice choosing alternative reactions e.g. when you are
angry
c. Keep your discussions with people to the minimum
10. Choose the most appropriate option:
a. A workforce comprising staff with low self-esteem will enable
workplace environment and all it entails, fulfil organisational
goals.
b. A workforce comprising staff with high self-esteem will
enable workplace environment and all it entails, fulfil
organisation goals.
c. Staff’s self-esteem is not a factor in fulfilling organisational
goals.

11. Mention two actions you can take in managing your emotions
the next time you get angry.
a.__________________________________________________
b. ___________________________________________________
12. True or False: An assertive person is aware of his own rights
and privileges yet often violates or usurps the rights of others.
13. Being a passive person is a good thing at the workplace
because it minimizes the occurrence of conflicts. True or False.

CURRENT DISCUSS IN THE POLITY

14. Choose the most appropriate option:


a. The recent GDP rebasing revealed that Nigeria is the country
with the largest economic volume in Africa.
b. Nigeria has the highest per capita income in Africa.
c. None of the above.
15. True or False: One of the flaws of the PIB is that it does not
make provision for Nigeria Local Content Plan.
16. List five (5) problems created by NNPC’s monopoly of
providing all the petroleum products used in the country.
111
a. ________________________________________________
___
b. ________________________________________________
___
c. ________________________________________________
___
d. ________________________________________________
___
e. ________________________________________________
___
17. Chibok is in _______________________ State.
18. True or False: To treat an Ebola-infected person, the patient
should drink 2 litres of highly salted lukewarm water daily.
19. Ebola virus was first discovered in the
year_______________
20. Hostage-taking is a security challenge in Nigeria. True or
False
21. What is the full meaning of the acronym “PPPRA”?

22. Which of the following options is NOT true about subsidy?


a. It is fair t all or equalizes both the rich and the poor since
both of them will be buying fuel at the same price.
b. It is the selling of products below the cost of production.
c. It gives room for corruption.
23. Explain how industrialisation leads to flooding.
24. List two (2) challenges of agriculture in Nigeria.
25. The newly elected governor of Osun State is:
a. Ajimobi
b. Aregbesola
c. Fayose

DEVELOPING ASSERTIVE COMMUNICATIVE SKILLS

26. “I refused to give it to him because it is against official


protocol.” Is:
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a. a passive statement
b. an assertive statement
c. an aggressive statement
27. “I believe that they are taking me for granted.” is:
a. a passive statement
b. an assertive statement
c. an aggressive statement
28. “I do not owe any one of you any apology.” is:
a. a passive statement
b. an assertive statement
c. an aggressive statement
29. Direct pointing of fingers at another person’s face is:
a. a passive non-verbal mode of communication.
b. an assertive operation
c. an aggressive mode of communication.

CONFLICT RESOLUTION SKILLS

30. Conflict may be good. True or False


31. Choose the most appropriate option:
a. Conflicts occur because of the presence of difficult people at
the workplace.
b. Conflicts occur in departments where the boss is not firm.
c. Conflict is inevitable.
32. Choose the most appropriate option:
a. it is never possible to reach a consensus at the workplace
because of conflict.
b. Before consensus take place, the way forward is to alienate
the difficult people so that the organization can move forward.
33. Choose the most appropriate option:
a. The best way to deal with conflict always is to avoid it by
taking a “sit down and look” approach.
b. Avoiding conflict can deprive a group of possible useful
contributions.
c. If everybody minds their own business, there would be no
room for conflicts.

113
34. The conflict resolution process requires both parties to
present their positions as clearly as possible and _____ to each
other’s position.
35. It is possible for reasonable people to have different views on
an issue for a perfectly good reason. True or False.
36. One of the principles employed in resolving conflict is the
Golden Rule. State it.
37. People’ responses to conflict are basically ASSERTIVENESS
and
__________________________
38. You do not have to fight or win every battle to win the
_________
39. Which of the following options is NOT true?
40. A conflict is said to be resolved:
a. when the issue is considered closed by the person
concerned about it.
b. when each of the parties decides not to talk about it.
c. when parties meet each other half-way
41. It is said that there is enough resources in the world to satisfy
everyone’s NEED but not enough to satisfy everyone’s ________
42. Whatever approach is adopted in resolving conflict, it is
essential to first apportion blame where it is due. True or False.
43. Choose the inappropriate option:
a. You should not engage in dealing with trivial conflict issues it
wastes valuable time.
b. Build good relationships before conflict occurs.
c. Respect differences
44. In managing conflicts, acknowledge facts before focusing on
feelings.
True or False
45. A key idea behind Johari’s Window for managing is that you
can build trust with others by disclosing ______ about yourself.
46. Meeting conflict with ____ overcomes opposition but never
the conflict.

114
NEGOTIATION SKILLS

47. The process of building on common interests and reducing


differences with a purpose is called_______________
48. Negotiation skills are geared toward winning arguments.
True or False.
49. One of the following options is NOT true about Win-win
Negotiations.
a. Both parties leave each other satisfied.
b. Both parties decide to co-operate or accept defeat.
c. Both parties have all their demands met.
50. List the four (4) phases of negotiation.
a. _________________________________________
b. ________________________________________
c. ________________________________________
d. ________________________________________
51. The acronym “SWOT” stands for ______ _______ ____
____
52. List five (5) practices to avoid during negotiation.
a. _________________________________________
b. ________________________________________
c. ________________________________________
d. ________________________________________
e. ________________________________________

CREATIVE AND CRITICAL THINKING SKILLS

53. All inventions and innovations are made possible through


_______
54. All things are created twice. Explain.
55. All problems facing mankind are solvable. True or False.
56. ______ is a reliable way of searching for the truth.
57. For you to have a workable idea you must _______ the idea.
58. ____ is a detailed study or examination of things, substances
or situations in orders to understand more about them.

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59. All great accomplishments begin with the germ of ____ in the
mind of a creative individual.
60. Creativity reduces stress. True or False.
61. The smarter you are, the more creative you are. True or
False.
62. To generate ideas, people must have a belief that only
certain things are possible. True or False.
63. In generating ideas, quantity ultimately breeds quality. True
or False
64. One of the following options is NOT true about creative
people:
a. They are bright
b. They have a positive image of themselves.
c. They are extroverts.
65. One of the following options is NOT true about creative
thinking:
a. It leads to an inner sense of well-being and peace
b. It gives you more control of your job and your life.
c. It causes headache

INTERVIEW BARRIERS

66. Anything that could contribute to the failure of an interview is


a __
67. Listening only to a part of what is being said is called
_________
68. Active listening involves all of these EXCEPT one:
a. making early assumptions about the content of the interview
b. acknowledging and responding, not letting oneself be
distracted
c. Paying attention to the speaker’s total communication –
including body language.
69. When you are unclear about a question during an interview,
the best thing to do is:
a. remain silent
b. assume what the questions is and provide the answer

116
c. confirm from the interviewer if you got his question correctly
by rephrasing it.
70. One of the following options is a good body language during
an interview:
a. looking at your watch
b. maintaining eye contact
c. yawning
71. One of the following is an appropriate posture while sitting for
an interview:
a. leaning back or ‘swinging on a chair’
b. leaning forward onto a desk or table and/or a constantly
shifting posture.
c. leaning slightly towards the speaker
72. Nodding of the head as an expression during an interview
means:
a. Your head is scratching you
b. You are paying attention
c. You disagree with the interviewer
73. Attentive listeners use smiles as feedback mechanisms and
to show attention. True or False.
74. We are engaged in _______ when the goal is to evaluate or
scrutinise what is being said.
75. When you are asked, “So, tell me about yourself” in an
interview:
a. the interviewer wants to know about your parent, siblings and
state of origin.
b. the interviewer wants you to inform him about your present
salary.
c. the interviewer wants to know about your skills, career
objective and experience.
76. There is no point in rehearsing an Elevator Speech since it is
about yourself. It will come naturally when you need it. True or
False.
77. One of the following options is NOT a good question to ask
the interviewer before a job has been offered:
117
a. How do you measure success in this position?
b. How much would be my annual salary if I’m selected?
c. If I’m selected, what would be my 2 – 3 highest priorities in
the near future?
78. Choose the best option among the 3 that describes the
references you should use.
a. Your secondary school teacher who you have not seen or
spoken to in the last 25 years.
b. Your former supervisor with whom you had an unresolved
conflict
c. Your previous elite team leader who is now retired.
79. One of the following dressings is NOT appropriate for an
interview for WOMEN:
a. Your briefcase to carry your resume and your purse for your
money and phone.
b. Closed toed shoes
c. 2 piece suit with skirt or pant
80. One of the following dressings is NOT appropriate for an
interview for MEN:
a. Long sleeve shirt, coordinating tie with casual sandals.
b. Solid colour suit
c. Dark socks that coordinates with suit.
81. One of the following options is NOT advisable for an
interview:
a. Always plan to arrive 5 minutes early
b. Never arrive to an interview late.
c. Know where and how long it will take to park and walk to the
building
82. You should not bring one of the following to an interview:
a. Copies of your resume
b. Your iPad
c. Your notepad
83. Pick out the odd item which you are not expected to bring to
an interview:
a. Map
b. Your notepad
c. Copy of the job posting
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84. True or False: Your friend can accompany you to an
interview.
85. The best place to put the materials you brought for an
interview is:
a. On the table, sharing it with the interviewer(s)
b. On the floor beside you
c. Inside the can you can easily get them when you need them.
86. The acronym, “STAR” stands for _____ _____ _____
and ___
87. An answer that is NOT advisable to give to “Why do you
want to work here?” question would be:
a. This is the company I’ve been looking for, a place where my
background, experience and skills can be put to use and make
things happen.
b. I just need a job
c. As a dedicated technician, I like doing essential research.
Being part of breakthrough team is an experience I’d love to
repeat.
88. An answer that is NOT advisable to give to “What is your
greatest weakness?” question would be:
a. I project self-expectations.
b. I get attached to projects.
c. I don’t have any weakness.

IMPORTANCE OF NON-VERBAL COMMUNICATION

89. ____ is any action, event or state pertaining to a human


being which is intentionally used by that human being to convey
information to others.
90. When you keep checking your watch, you are non-verbally
telling the interview _________
91. Rub the back of your head or neck. Even if you really do just
have a cramp in your neck, these gestures make you look
disinterested in the interview. True or False.

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92. Rub or touch your nose after you have been asked a
question. This suggests that you’re not being completely honest.
True or False.
93. One of the following body languages is GOOD during an
interview:
a. Stare back blankly.
b. Cross your legs and idly shake one over the other.
c. Establish a comfortable amount of personal space between
you and the interviewer.
94. Colognes and perfumes are very good. They can attract the
interviewer to you. True or False.
95. If you have ore than one person interviewing you at once,
make sure you only focus your attention on one of them. True or
False.
96. What do you do with your hands or arms during an
interview?
a. Fold your arms across your chest. It makes you look tidy.
b. Rest your chin in your hands. It shows that you are paying
attention.
c. If you are unsure of what to do with your hands, rest them,
loosely clasped in your lap.

TRADITIONAL & BEHAVIOURAL INTERVIEW

97. _________ type of interviewing centers on the education,


qualifications and experience of the candidate.
98. “What qualities should an NNPC manager possess?” Is a
behavioural interview questions. True or False.
99. “Describe a situation where you were faced with a nearly
impossible deadline and how you managed it.” Is a behavioural
interview question. True or False.
100. IN describing the action you took to address a situation in the
past,, the following response would be appropriate: “We then made

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certain that we went up to him and apologized and made it clear
that we meant no disrespect and that sometimes we just become
comfortable with people very quickly.” True or False.
101. The best way to gain thinking time after you have been
asked an interview question is:
a. Ask your interviewer(s) to give you 3 minutes to think.
b. Repeat the question or ask the interviewer what is it they
want to know.
c. Ignore everybody and close your eyes while you think.

QUIZ

1. What is a team?

2. State three (3) ways teams can have effect on an organisation

3. Name four (4) team member types

4. Mention any three (3) reasons why teams fail and write a
statement for success.

5. Identify three (3) roles a manager plays in ensuring team is


effective

6. List and explain any three (3) letters of the word PERFORM

7. List three (3) types of teams

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Oil and Gas Business Environment Review (BER) Presentation for NNPC Chief
Officers Course 075

QUESTIONS FOR CHIEF OFFICERS COURSE 075

TIME ALLOWE: 45 MINUTES

Answer all Questions

1. Mention two (2) likely causes of the current drop in Crude Oil
prices.

_________________________________________________________

_________________________________________________________

2. Mention three (3) sources of energy that makes up the global


energy mix.

a. __________________________________________________

b. __________________________________________________

c. __________________________________________________

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d. Which source is more dominant?________________________

3. Outline one (1) possible effect of the PANAMA CANAL


EXPANSION project to Nigeria crude and LNG export.

a. __________________________________________________

4. Name two (2) major crude oil price benchmark and their region of
dominance.

a. __________________________________________________

b. _________________________________________________

5. Crude Oil prices’ remaining below $100 mark since October, 2014
is a serious challenge to NNPC and our domestic economy. As a
prospective Manager, list three (3) mitigating action for NNPC.

a. __________________________________________________

b. __________________________________________________

COMPD – BATCH 075

Assessment Quiz

Corporate culture and Business Ethics

1. One (1) of these is not an element of organization culture

a. Symbols b. Organisation structure c. learning &


development

d. Control System.

2. One (1) of these does not form part of NNPC Core Values

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a. Professional excellence b. Staff development c. operational
excellence d. integrity

3. ............... is striving for high quality, performance and commercial


value in everything we do.

a. Accountability b. integrity c. professional excellence

d. dependability

M.S

1. a. What is leadership?

b. State/list 7 DL as in leading self, others and NNPC.

2. a. Explain the behavioural styles of leaders

b. Which style of leadership do you apply to Mexcom?

3. a. How do you measure trust?

b. What makes a leader to be trusted?

4. State the steps to develop mission and vision statement.


124
5. What are the importance of mission, vision and organisational core
Values.

6. State five (5) qualities of a good leader.

7. With the aid of a diagram, explain the steps to take in solving a


problem.

8. Paradigm, draw the diagram of emotional intelligence how to get


the best out of your staff.

COMDP – BATCH 074

ASSESSMENT QUIZ

Performance Management

1. The principal aim of performance management is to create reports


quickly.

a. True

b. False

c. Not sure

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2. Performance management establishes a delivery culture in an
organisation.

a. True

b. False

c. Not sure

3. A mission statement is one that describes where an organization


want to be in the future.

a. True

b. False

c. Not sure

4. Which of the following characteristics of KPIs is not correct?

a. Must be SMART

b. Must be kept as few as possible

c. Must not necessarily be aligned with the business purpose

5. Objective are broader than Goals (True or False).

6. A well-structured strategic business plan is built on the following


EXCEPT:

a. Business objectives and goals

b. Strategic Alternatives

c. Employees skills assessment

7. The first step in performance management is:

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a. Conducting a performance dialogue

b. Developing KPIs

c. Alignment of organisational goals

8. A good strategic plan should be aligned to budgeting. True or


False)

9. One of the following is a useful tool in conducting an industry


analysis:

a. SWOT

b. SNAP

c. SWAT

10. Which of the following is not a characteristic of a good strategic


plan?

a. complex

b. simple

c. realistic

11. The following are best practice strategic planning components


except:

a. Resource reallocation

b. capacity building

c. Quality decision making

12. One of these is not a key strategic plan outline:

127
a. Career path

b. Executive summary

c. Financial plan

13. When was NNPC performance management policy signed?

a. March 2010

b. March 2011

c. March 2012

14. Internal process is one of the perspectives in a performance


management framework:

a. True

b. False

c. Not sure

15. Which of the following describes a leading KPI?

a. Precursor of future success.

b. Leads us to determine the current situation

c. Shows how successful we were in achieving past results

16. Distinguish between organisational mission and vision statements

a. mission statement ...

b. vision statement ...

Oil and Gas Value Chain

128
17. The amount of gas produced in Nigeria that is consumed
domestically is about?

a. 40%

b. 27%

c. 25%

d. 10%

18. Some of the largest companies in the world are not oil and gas
companies:

a. True

b. False

19. One of the following is not an example of unconventional oil.

a. Oil sands

b. Clay oil

c. Tight oil

d. Oil shale

20. Which of these refinery configurations has the lowest yield of light
product?

a. FCC

b. Hydro-skimming

c. Coking

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d. topping

21. The least preferred business model for IOCs in matured markets
is?

a. COCO

b. CODO

c. DODO

d. None of the above

Accounting and Finance

22. Balance sheet is for a specific date while income and cash flow
statements are for a period of time.

a. True

b. False

23. The value of a company is determined by all of the following


Except:

a. Growth

b. ROIC

c. Tax

d. Cost of capital

24. The following are margins that are used to measure cost efficiency
of a business except:

a. Cost margin

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b. Gross margin

c. EBIT margin

d. Net profit margin

25. The ratio of the money I make to the money I invested to make
money is known as:

a. EBIT

b. ROCE

c. ROIC

d. GROSS MARGIN

PROJECT MANAGEMENT QUESTIONS

1. A project manager has very little project experience but he


has been assigned as the project manager of a new project.
131
Because he will be working in a matrix organisation to complete
his project, he can expect communication:
a. Simple
b. Open and accurate
c. Complex
d. Hard to automate
2. A manager and the head of engineering discuss a change to
a major work package. After the meeting, the Manager contacts
you and tells you to complete the paperwork to make the change.
This is an example of:
a. Management attention to scope management
b. Management planning
c. A project expediter position.
d. A change control system
3. Your management has decided that all orders will be treated
as “project” and that project managers will be used orders daily, to
resolve issues, and to ensure that the customer formally accepts
the product within 30 days of completion. Revenue from the
individual orders can vary from $100 to $150,000. The project
manager will not be tired to perform planning or provide
documentation other than daily status. How would you define this
situation?
a. Because each individual orders is a “temporary
endeavour,” each order is a project.
b. This is programme management since there are
multiple projects involved
c. This is a recurring process.
d. Orders incurring revenue over $100,000 would be
considered projects and would involve project management.
4. Organisational work is different from project work in that it is:
a. Unique
b. Temporary
c. On-going and repetitive
d. A part of every project activity

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5. The person who should be in control of the project during
project planning is the:
a. Project manager
b. Team member
c. Functional manager
d. Sponsor
6. A project manager does not have much time to spend
planning before the mandatory start date arrives. He therefore
wants to move through planning as effectively as possible. Which
of the following would you recommend?
a. Make sure you have signed project charter and then
start the WBS.
b. Create an activity list before creating a network
diagram
c. Document all the known risks before you document the
high-level assumptions.
d. Finalise the quality management plan before you
determine quality metrics.

7. Which of the following would be the MOST appropriate thing


to do during the initiating process group?
a. Create a detailed description of the project
deliverables.
b. Get familiar with the company culture and structure as
it relates to the project.
c. Identify the root cause of problems
d. Ensure all project management processes are
complete.
8. The work on the first phase of your project has come to an
end. What would you ensure is done BEFORE beginning the next
phase?
a. Verify that the resources are available for the next
phase

133
b. Check the project’s progress compared to the
baselines
c. Confirm that the phase has reached its objectives, and
have its deliverables formally accepted.
d. Recommend corrective action to bring the project
results in line with project expectation.
9. A project manager has managed four projects for the
company and is being considered to join the project management
office team. The following is discovered during the evaluation of his
performance. The project manager’s first project had an ending
cost variance of -500, used two critical resources, needed to
rework the project charter during project executing and was ranked
14th in priority within the company. The second project finished with
a schedule variance of +100, was completed with a vasily
compressed schedule, and received a letter of recommendation
from the sponsor, but the product of the project was not used. The
third project has 23 percent more changes than expected, has an
SPI of 0.90, and 25 open items in the issue log when the project
was completed. Each of these projects had a cost budget of
$1,000 and 20 to 28 percent more changes than others of its size.
The project management office decided not to add this project
manager to the team. Which of the following BEST describes why
this might have happened?
a. The project manager has only managed low-priority
projects, and he had to compress the schedule, showing that
he does not have the skill to work in the project management
office.
b. Issue logs should not be used on projects of this size,
showing that the project manager does not have the
knowledge to work in a project management office.
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c. The project manager did not effectively involve the
stakeholders, showing that he does not have the knowledge
to work in the project management office.
d. The project manager had two critical resources on his
team and still needed to rework the project charter, showing
that he does not have the discipline to work in the project
management office.
10. Which of the following BEST describes the project manager’s
role as an integrator?
a. Help team members become familiar with the project
b. Put all the pieces of a project into cohesive whole
c. Put all the pieces of a project into a programme
d. Get all team members together into a cohesive whole
11. You are taking over a project and determine the following.
Activity B has an early finish (EF) of day 3, a late finish of day 6,
and an early start (ES) of day 2. Activity L is being done by hard-to-
get resource. The cost performance index (CPI) is 1.1, and the
schedule performance index (SPI) is 0.8. Based on this information
what will you be more concerned about?
a. Float
b. Resources
c. Cost
d. Schedule
12. A project manager is appointed to head a highly technical
project in an area with which this person has an familiarity. The
project manager delegates the process of Develop Schedule,
Estimate Costs, Define Activities, Estimate Activity Resources to
various project team members, and basically serves as an
occasional referee and coordinator of activities. The results of this
approach are likely to be:
a. A team functioning throughout the project at a very high
level, demonstrating creativity and commitment

135
b. A team that initially experiences some amounts of
confusion, but that after a period of time becomes cohesive
and effective unit
c. A team that is not highly productive, but that stays
together because of the work environment created by the
project manager.
d. A team that is characterized by poor performance, low
morale, high levels of conflicts and high turned.
13. During what part of the project management process is the
project scope statement created?
a. Initiating
b. Planning
c. Executing
d. Monitoring and control
14. When should the verify scope statement be done?
a. At the end of the project
b. At the beginning of the project
c. At the end of each phase of the project
d. During the planning processes
15. A project manager may use ................................. to make
sure the team members clearly know what work is included in each
of the work package.
a. The project scope statement
b. The project scope
c. A WBS dictionary
d. A schedule
16. One of the stakeholders on the project contacts the project
manager to discuss some additional scope they would like to add
to the project. The project manager asks for details in writing and
then works through the Scope Process. What should the project
manager do NEXT when the evaluation of the report scope is
completed?
a. Ask the stakeholder if there are any more changes
expected.
b. Complete integrated change control.
136
c. Make sure the impact of the change is understood by
the stakeholder.
d. Find out the root cause of why the scope was not
discovered during project planning.
17. Which of the following BEST describes the relationship
between standard deviation and risk?
a. Nothing
b. Standard deviation tells you if the estimate is accurate
c. Standard deviation tells you how unsure the estimate is
d. Standard deviation tells you if the estimate includes a
pad.
18. Your project management plan results in a project schedule
that is too long. If the project network diagram cannot change but
you have extra personnel resources, what is the BEST thing to do?
a. Fast track the project
b. Level the resources
c. Crash the project
d. Monie Cario analysis
19. During project planning you estimate the time needed for
each activity and then add the estimates to create the project
estimate. You commit to completing the project by this date. What
is wrong with this scenario?
a. The team did not create the estimate, and estimating
takes too long using that ethod.
b. The team did not create the estimate, and a network
diagram was not used.
c. The estimate is too long and should be created by
management
d. The project estimate should be the same as the
customer’s required completion date.
20. Analogous estimating:
a. Uses bottom up estimating techniques
b. Is used most frequently during the executing processes
of the project.
c. Uses top – down estimating techniques
137
d. Uses actual detailed historical costs.
21. A schedule performance index (SPI) of 0.76 means:
a. You are over budget
b. You are ahead of schedule
c. You are only progressing at 76 percent of the rate
originally planned.
d. You are only progressing at 24 percent of the rate
originally planned.
22. During which project management process group are budget
forecast created?
a. Monitoring and control
b. Planning
c. Initiating
d. Executing
23. Which of the following represents the estimated value of the
work actually accomplished?
a. Earned value (EV)
b. Planned Value (PV)
c. Actual cost (AC)
d. Cost Variance (CV)
24. A manager notices that a project manager is holding a
meeting with some of the team and some stakeholders to discuss
the quality of the project. The project schedule has been
compressed, and the CPI is 1.1., they have worked hard on the
project, the team has been rewarded according to the reward
system the project manager put in place, and there is a strong
sense of team. The manager suggests that the project manager
does not have enough time to hold meetings about quality when
the schedule is so compressed. Which of the following BEST
describes why the project manager is wrong?
a. Improved quality leads to increased productivity,
increased cost effectiveness and decreased cost risk.
b. Improved quality leads to increased productivity,
decreased cost effectiveness and increased cost risk.

138
c. Improved quality leads to increased productivity,
increases cost effectiveness, and increased cost risk.
d. Improved quality leads to increased productivity,
decreased cost effectiveness and decreased cost risk.
25. A control chart helps the project manager:
a. Focus on the most critical issues to improve quality
b. Focus on stimulating thinking
c. Explore a desired future outcome
d. Determine if a process is functioning within set limits.
26. All of the following results from quality audits EXCEPT:
a. Determination of whether project activities comply with
organisational policies
b. Improved process to increase productivity
c. Creation of quality metrics
d. Confirmation of the implementation of approved
change requests.
27. A project manager and team from a firm that designs railroad
equipment are tasked to design a machine to load stones unto
railroad cars. The design allows for two percent spillage,
amounting to over two tons of spilled rock per day. In which of the
following does the project manager document quality control,
quality assurance and quality improvement for this project?
a. Quality management plan
b. Quality policy
c. Control charts
d. Project management plan
28. Which of the following conflict resolution techniques will
generate the MOST lasting solution?
a. Forcing
b. Smoothing
c. Compromise
d. Problem solving
29. During project management planning in a matrix
organisation, the project manager determines that additional
human resources are needed. From whom would he request these
resource?
139
a. Project manager
b. Functional manager
c. Team
d. Project Sponsor
30. A project manager has just found out that a major
subcontractor for her project is consistently late delivering work.
The project team member responsible for this part of the project
does not get along with the subcontractor. To resolve the problem,
the project manager says, “you both will have to give up something
to solve this problem.” What conflict resolution problem is she
using?
a. Confrontation
b. Compromise
c. Smoothing
d. Communicating
31. A project is in the middle of execution when a stakeholder
suggests a major new change. This change will cause the third
major overhaul of the project. At the same time, the project
manager discovers that a major work package was not completed
because a team member’s boss moved him to another project that
has a higher priority. Which of the following is the BEST person for
the project manager to address these issues with?
a. The team
b. Senior management
c. The customer
d. The sponsor
32. Formal written correspondence with the customer is
required when:
a. Defects are detected
b. The customer requests additional work not covered
under contract
c. The project has a scheduled slippage that includes
changes to the critical path.
d. The project has cost overruns

140
33. A large one-year telecommunication project is about half way
done when you take the place of the previous project manager, the
project involves three different sellers and a project team of 30
people. You would like to see the project’s communication
requirements and what technology is being used to aid in project
communications. Where will you fid the information?
a. The project management plan
b. The information distribution plan
c. the bar chart
d. The communication management plan.
34. The project status meeting is not going well. Everyone is
talking at the same time, there are people who are not
participating, and many topics are being discussed at random.
Which of the following rules for effectiveness is NOT being
adhered to?
a. Demonstrate courtesy and consideration of each other,
and control who is allowed to speak.
b. Schedule meetings in advance
c. Have a purpose for the meeting with the right people in
attendance
d. Crate and publish an agenda and a set of rules for
controlling the meeting.
35. During the middle of the project, things have being going
well. The work authorization system has allowed people to know
when to start work, and the issue log has helped keep track of
stakeholder’s needs. The benefit of ratio has been improving, and
the sponsor has expressed his appreciation for the team members’
efforts by hosting milestone party for the team. The project
manager gets a call from a team member saying that the result
from the completion of their activity’s predecessor is two days late.
Which of the following reasons would BEST describe why this
occurred?
141
a. The project manager was focusing on the sponsor’s
needs.
b. Functional management was not included in the
communications management plan
c. The successor activities should have been watched,
not the predecessors.
d. The right people were not invited to the milestone
party.
36. If a risk has a 20 percent chance of happening in a given
month, and the project is expected to last five months, what is the
probability that the risk event will occur during the fourth month of
the project?
a. Less than 1 percent
b. 20 percent
c. 60 percent
d. 80 percent
37. Risk tolerances are determined in order to help:
a. The team ranks the project risks.
b. The project manager estimates the project
c. the team schedule the project
d. Management knows how other managers will act on
the project.
38. Workarounds are determined during which risk management
process?
a. Identify Risks
b. Perform Quantitative Risk Analysis
c. Plan Risk Responses
d. Monitor and Control Risks.
39. You are a project manager for the construction of a major
new manufacturing plant that has never been done before. The
project cost is estimated at $30,000,000 and will make use of three
sellers. Once begun, the project cannot be cancelled, as there will
be a large expenditure on plant and equipment. As the project
manager, it would be most important to carefully:
a. Review all cost proposals from the sellers
142
b. Examine the budget reserves
c. Complete the project charter
d. Perform an identification of risk.
40. All the following statements about change control are
incorrect EXCEPT:
a. A fixed price contract will minimize the need for change
control
b. Change seldom provides real benefits to the project
c. Contracts should include procedures to accommodate
change
d. More detailed specifications eliminate the causes of
changes.
41. All of the following MUST be present to have a contract
EXCEPT:
a. Procurement statement of work
b. Acceptance
c. Address of seller
d. Buyers’ signature
42. The sponsor is worried about the seller deriving extra profit
on the cost plus fixed fee (CPFF) contract. Each month he requires
the project manager to submit CPI calculations and an analysis of
the cost to complete. The project manager explains to the sponsor
that extra profits should not be a worry on this project because:
a. The team is making sure the seller does not cut scope
b. All cost invoiced are being audited.
c. There can only be a maximum 10 percent increase if
there is an expected cost overrun.
d. The fee is only received by the seller when the project
is complete.
43. You are in the middle of a complex negotiation when the
other party says, “We need to finish in one hour because I have to
catch my plane.” That person is using which of the following
negotiation strategies?
a. Good guy, bad guy
b. Delay
143
c. Deadline
d. Extreme demands
44. A decision has to be made regarding project selection.
Several project managers have been asked to give their opinions
to the executive committee. Each project manager has a personal
interest because the project manager will be assigned. The project
chosen will be high priority and high visibility, with substantial
reward for success. How should the project managers make their
recommendations?
a. They should each explain why the project they would
be in charge of would be the best to choose and provide
documentation to substantiate it.
b. They should recommend the project that would be best
for the company in the long run, regardless of who is going to
run it.
c. They should make a chart that shows the pros and
cons of each project making sure to the list more pros for the
one they would run and less cons to prove its value.
d. They should not give an opinion since it will not be
objective.
45. A major negotiation with the potential subcontractor is
scheduled for tomorrow when you discover there is a good chance
the project will be cancelled. What should you do?
a. Do not spend too much time preparing for the
negotiation.
b. Cut the negotiation short
c. Only negotiate major items
d. Postpone the negotiations.
46. You are in the middle of a new product development, your
publicly traded economy when you discover that the previous
project manager made a 08 53,000,000 payment that was not

144
approved in according to your company policies, luckily the project
cost performance index (CPI) is 2.1. What should you do?
a. Contact your manager
b. Put the payment in an escrow account
c. Bury the cost in the largest cost centre available
47. When checking the calendar of a team member to schedule
a meeting, you see also has scheduled a meeting with a key
stakeholder that you were not informed of. The BEST approach
would be to:
a. Avoid mentioning it to the team members but continue
to watch their activities.
b. Notify your boss about the problem
c. Address the concern with the team member’s boss
d. Address the concern with the team member.
48. You are a project manager for one of many large and
important programme. At a high level status meeting, you note that
another project manager has reported her project on solution.
Looking back on your project over the last few weeks, you
remember many deliverables from the other project that arrived
late. What should you do?
a. Meet with the project manager
b. Develop a risk control plan
c. Discuss the issue with your boss
d. Meet with the other project manager.
49. You have always been asked by your management to cut
your project estimate by 10 percent after you have given it to them.
The scope of your new project is unclear and there are over 30
stakeholders. Management expect 25% reduction in downtime as
a result of the project. Which of the following is the best cause of
action in this situation?
a. Replan to achieve a 35% percent improvement in
downtime.
b. Reduce the estimates and note the changes in the risk
response plan.
145
c. Provide an accurate estimate of the actual costs and
be able to support it.
d. Meet with the team to identify where you can find 10
percent savings.

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