Success Factors for Marginal Oil Field Development in Niger-Delta Region

Abstract

Abstract As the hydrocarbon reserves in the fields of Niger Delta region declines, there is the need for improved recovery from existing oil and gas fields reserves especially those classified as marginal oil fields. Despite policy initiatives and considerable potential for the development of marginal fields in Nigeria, marginal oil field development has not been fully successful. It is against this background that this study was undertaken to assess the critical success factors for marginal oil field development in Niger Delta region of Nigeria. An extensive literature review and case study marginal field operators were carried out. The result revealed that the sustainability indicators of marginal oil field development in Nigeria are: Collaboration, partnership/joint ventures, corporate social responsibility, the use of innovative technology, integrated development of oil and gas fields, mergers and acquisition, equipment/facility leasing, clustering and availability of related and support industries are the key factors that enabled the successful operations of marginal field development in Nigeria. The significance of the study is as follows: It serves as a useful guide for investors wishing to participate in the sustainable development of marginal oil fields; it provides new information towards policies that promotes sustainable development of oil and gas resources. The overall significance of the study is to contribute to knowledge on the management of hydrocarbon resource for economic sustainability in Nigeria. It is recommended that the best route for marginal field development is to forge joint action programme by combining global best practice by marginal field operators, government agencies responsible for regulating the oil and gas industry and other stake holders.