Constraints in Sustainable Development of Marginal Oil Field in Niger Delta Region

Abstract

Abstract Economic, environmental, natural, socio political, technological and other man made circumstances aggregate into sources of risk which result in the main constraints to sustainable development of marginal oil fields in Niger Delta region. For marginal oil fields, the constraints may further reduce the economic viability as well as result in devastating consequences to the environment. The paper examines the causes of the main constraints to marginal oil field development and the associated consequences in Niger Delta region. The identification of the main constraints to marginal oil field development presents opportunities for continuous improvement and possible reduction in the cost of operations of the marginal fields in Niger Delta region. The study provides new information that is not publicly available for Niger Delta region and serves as a useful guide for investors wishing to participate in the sustainable development of marginal oil fields in Niger Delta region. Adopting an innovative methodology, involving literature and document analysis the study identifies economic condition, know-how and institutional capacity as the key constraints in sustainable development of marginal oil fields in Niger Delta region. Although security concerns are significant with outlying step influences, however, we also established that other non-technical factors result in the main constraints to marginal field development among which are funding, technical expertise, government policy and marginality of the field. The solution lies in addressing these burning issues. The paper provides a strategic management model for sustainable development of marginal oil fields in Niger Delta. The proposed model can be applied as input into a wider risk assessment framework for investment decision.