Nigerian Oil Research Articles

Project Risk Mitigation and Project Execution in the Nigeria Oil And Gas Industry

The focus of this study is to examine the relationship between project risk mitigation and project execution in the Nigeria oil and gas industry. Specifically, the study examines the extent of contribution of project risk mitigation in realising project budget, quality, schedule and scope during execution. In pursuant of these objectives, survey research design was used. 102 questionnaires were administered to the Managing Directors or Chief Operating Officers and project or operations managers of the selected companies. Eighty two questionnaires were validly retrieved and used for data analysis. Data obtained were analysed mean and Spearman’s rank order correlation analysis. The study found that projects risk mitigation was significantly and positively related to project execution in terms of budget, quality, schedule and scope. The study therefore recommends that there should be a holistic integration and constant improvement of project risk mitigation strategies which will help improve the quality of projects executed in the Nigerian oil and gas industry.

Application of Augmented Water Flooding Using Ultrasound Energy to Improve Oil Recovery

The application of ultrasound energy in improving oil recovery is an emerging technique, it has been tested in laboratories and some field applications in different parts of the world. In this study, Nigerian crude oil of 4.21 cSt viscosity and sandstone rock samples were tested using a designed and constructed experimental rig. The rig is an analogue of a standard core flooding set up and works on the principle of fluid flow in porous media. Furthermore, a modeled equation was developed to better understand the effects of power and time on the volume of oil recovered at a constant ultrasound frequency. Results obtained show a positive impact in the recovery of residual oil during waterflooding with the assisted ultrasound energy. About 2-fold increase in the recovery of oil was observed when the ultrasound energy was applied to augment the waterflooding process. Model equations developed were found to be adequate because the adjusted and predicted R-squared values show reasonable agreement (R-adjusted = 0.9993, R-Predicted = 0.9974).

Solar energy policy directions for safer and cleaner development in Nigeria

This paper examines the Nigerian Solar Energy Policy (NSEP), as contained in the National Renewable Energy and Energy Efficiency Policy (NREEEP). It addresses the policy gaps and offers new directions for NSEP to develop further towards supporting safer and cleaner development of Nigeria. The formulation of the policy statements needs to take care of the adverse impacts of solar derived wastes on the environmental and human health. This need is quantitatively justified using projected data that was computed from interpolation and geometric series analyses to show that the share of solar PV-derived waste in Nigerian and global e-waste stream will get more significant going forward and, as such, must be accorded increased attention in e-waste monitoring policies in order to forestall worsening toxicity concerns. Security should be guaranteed for future utility-scale solar energy installations which could be vandalized by the host communities and lead to a repeat of the subsisting crises in the Nigerian oil and gas sector. Priorities on the various solar energy sources and technologies, on the basis of current socioeconopolitical realities in Nigeria, should dictate the chronology for both skills and market development. Regulatory/fiscal obligations/incentives must prioritize the target obligors/recipients according to their relative importance in the economy.

On the relationship between intellectual capital efficiency and firm value: evidence from the Nigerian oil and gas downstream sector

We use a multi-theory framework which combines the lenses of clean surplus theory, resource-based theory and stakeholder theory to examine the relationship between measures of intellectual capital efficiency and firm market value. We employ Prais-Winsten regression with panel corrected standard errors to estimate our model. We find that while capital employed and structural capital efficiencies significantly and positively determine firm value, relational capital efficiency's positive effect appears mild. However, human capital efficiency appears to have no relationship with firm value. The significance of our findings is demonstrated by two key contributions to the literature. Firstly, this study is the first of its kind conducted in the Nigerian oil and gas industry. Secondly, our results provide further evidence in support of the clean surplus theory in its function of facilitating the role of accounting numbers in determining and explaining market values. These results are robust to an alternative time-series estimation at aggregate downstream sector level.

On the relationship between intellectual capital efficiency and firm value: evidence from the Nigerian oil and gas downstream sector

On the relationship between intellectual capital efficiency and firm value: evidence from the Nigerian oil and gas downstream sector

Extending Local Content Legal Framework Beyond the Nigerian Oil and Gas Industry: A Case for Similar Framework in the Construction and Solid Mineral Industries

Extending Local Content Legal Framework Beyond the Nigerian Oil and Gas Industry: A Case for Similar Framework in the Construction and Solid Mineral Industries

The Local Advantage: Corruption, Organized Crime, and Indigenization in the Nigerian Oil Sector

The Local Advantage: Corruption, Organized Crime, and Indigenization in the Nigerian Oil Sector

Effect of Processing Method on Carotenoid Profiles of Oils from Three Varieties of Nigerian Palm Oil (Elaise guinensis)

This study assessed the effect of processing method on the carotenoid profile of oil from three varieties of Nigerian oil palm fruits (Elaise guinensis). Specific varieties of the Elaise guinensis, which are the dura, pesifera and tenera were obtained from National Institute for Oil Palm Research (NIFOR) in Edo state, Nigeria. The samples were divided into two and processed using two different methods as commonly practiced in south-eastern Nigeria, the hot and cold processes. The oil extracted from each of the processes was then analyzed for oil characteristics using standard analytical methods while the carotenoid profile was analyzed using HPLC C-21 column. The results generated were subjected to the one-way analysis of variance (ANOVA). The results of carotenoid constituent identified include: lutein, neurosporene (trans), neurosporene (cis), α-Zeacarotene(cis), α-Zeacarotene(trans), phytoene, phytofluene, β-zeacarotene, 13 and 13’ cis α-carotene, 13 cis β-carotene, trans α-carotene, 9 cis α-carotene, trans β-carotene, αcarotene a(cis), α-carotene b(cis), α-carotene (trans), γ-carotene (trans), γ-carotene b(cis), lycopene (cis) and lycopene (trans). The results of physicochemical characteristics of the oil samples extracted range from 0.922 ± 0.004 - 0.916 ± 0.001 for specific gravity (SG), 8.10 ± 0.17 - 4.88 ± 0.04 mg KOH/g for acid value, 4.29% ± 0.02% - 2.44% ± 0.02% for free fatty acid value (FFA), 6.00 ± 0.21 to 204.67 ± 0.98 mgKOH/g for saponification value and 9.53 ± 0.23 - 5.25 ± 0.33 mEq/kg; for peroxide value while the carotenoids values were between 53.735 ± 0.10 and 123.389 ± 0.20 mg/100g. From the result, we can observe that the main constituent of the palm oil carotenoid is the β-carotene which makes up to about 80% of the total carotene. Statistical analysis revealed that no significant difference exists between the mean of each of the processing methods on the carotenoid profile of the oil sample analyzed.

Financial Performance Determinants at the Nigerian Oil and Gas Sector

Financial Performance Determinants at the Nigerian Oil and Gas Sector

Dealing with vulnerability to carbon emission from gas flaring: the roles of transparency and utilisation policies in Nigeria

AbstractGas flaring, a practice described as environmentally damaging and financially wasteful, still persists on a large scale in the Nigerian oil and gas industry. Firstly, this paper investigates the vulnerability of the Nigerian economic performance to environmental pollution by estimating and analysing the relationship between carbon emission from gas flaring and Nigeria’s GDP. Secondly, the study examines how transparency and gas utilisation policies, deployed by the country, are performing in dealing with vulnerability to carbon emission from gas flaring. The paper uses an autoregressive distributed lag bounds testing approach to cointegration and error‐correction‐based Granger causality. The paper establishes that carbon emission from gas flaring affects Nigeria’s GDP negatively in both the short and long run. However, the results show that GDP has started exhibiting resilience to carbon emission from gas flaring in the long run. Findings imply that even though transparency and gas utilisation policies are doing well in increasing GDP’s long‐run resilience, persistent carbon emission from gas flaring continues to cause short‐run and long‐run economic vulnerability. The study discusses policy implications meant to be useful to the Nigerian government and the relevant regulatory authorities in the country's oil and gas industry.

Validating the effects of the environmental regulation compliance scale: evidence from the Nigerian oil and gas industry.

Growing environmental deterioration has caused many countries to tighten their environmental regulations across the globe. Recent studies show that most developed countries enforced stricter environmental regulations creating a pollution haven to developing countries such as Nigeria. Studies show the non-availability of an environmental regulation compliance scale in the energy sectors. The aim of this paper is to validate the effects of environmental regulation compliance scale for oil and gas companies' operations in the Nigerian oil and gas industry. Hence, an adapted questionnaire comprising 11 items was administered to 300 local and multinational oil and gas companies in Nigeria. All the items were subjected to evaluations and validations by eight expert reviewers with cognate experience in oil and gas activities. Evaluation of the reliability and validity of the measures of the environmental regulation scale was performed through confirmatory factor analysis (CFA) using SPSS version 25 and PLS-SEM version 3.8. The results provide evidence that the environmental regulation compliance scale has met the reliability and validity criteria. Consequently, policymakers, practitioners, and researchers can adapt this scale to assess the effects of environmental regulation compliance by companies in different jurisdictions across the globe. This study undoubtedly builds the existing literature and contributes to the subject area; by implication, the validated scale will assist host oil and gas countries with stringent environmental regulations to come up with policies in such a way as to ensure not chasing away the current investors or discouraging prospective ones from investing in their countries.

The Influence of Leadership Career Development on the Organizational Adaptiveness of Millennial Engineers in the Nigerian Oil and Gas Industry

Introduction: This study seeks to assess the attitude of millennial engineers towards leadership career development opportunities in the oil and gas industry in Nigeria. It was conducted based on the gap in the literature of none existence of a framework that explains the organizational adaptiveness of millennial engineers in the Nigerian oil and gas industry.Method: This study adopted a quantitative descriptive and deductive approach. Based on the reviewed literature and the resulting conceptual model, 18 questions 5-scale Likert closed ended questionnaire was administered cross-sectionally to 250 participants selected through non-probability convenience sampling. First, a descriptive analysis of the mean and standard deviation for each question in the questionnaire was conducted. Second, both exploratory factor analysis (EFA) and principal component analysis (PCA) were conducted with the main aim of understanding how the questions in the research instrument interacted to produce grouped factors and components. Third, a confirmatory factor analysis (CFA) was conducted to identify high loading questions that define the millennial engineers' organizational adaptiveness.Results: The instrument retrieval was 89% successful with 86% fit for analysis. The results are summarized as follows: (1) leadership career development is a significant contributing factor in the work related attributes of a millennial engineer; (2)leadership career development aspiration is a significant factor influencing the organizational adaptiveness of a millennial engineer, provided the organization can offer him or her the opportunity to be creative; and (3)a millennial engineer's organizational adaptiveness is not totally driven by aspiration for a higher leadership position, but partly on how the workplace dynamics matches his or her personality.Conclusion: The conclusion was that the millennial engineer is one with a unique personality of strong leadership career ambition in an organization that offers avenues for creativity and a work environment that is free from harassment and gender biases.

Corporate environmental accountability in Nigeria: an example of regulatory failure and regulatory capture

PurposeThe purpose of this study is to investigate how state regulations become ineffective in holding corporations accountable for environmental degradation in an emerging economy context, with a specific focus on oil and gas and cement industry in Nigeria.Design/methodology/approachThe study draws on capture theory to bring out the factors that have rendered redundant the state intervention to make corporations accountable for their environmental activities. The research setting is the oil and gas and cement industry in Nigeria. Data for the study are derived from both documentary analysis and semi-structured interviews and analysed using a thematic technique.FindingsThe findings of the paper demonstrate a regulatory failure to hold corporations to account for their environmental activities. A lack of political will, outdated regulations and the manipulation of the regulators, all have played a part in preventing corporations from being accountable for their activities. In addition, the widespread elite corruption in the country has provided corporations with leeway to manipulate their environmental accountability practices. The study emphasises the need for continuous review of the regulations and efforts to reduce corruption in order to promote corporations' environmental accountability in Nigeria.Research limitations/implicationsThe research is limited to Nigeria, oil and gas and cement industries. The theoretical lens can be used to address problem of capture of the regulations and institution in the country.Practical implicationsThe practical implication is that it would enhance environmental regulations in Nigeria and emerging economies. It will also provide support from researchers emerging markets on the adoption of capture theory in future research.Social implicationsIt will promote corporate best environmental practices in the country. It will reduce the issues surrounding environmental accountability practices and create awareness on environmental issues among the populace. It will create the impression that corporations will be held accountable for their environmental activities in the country and the need to have improved environmental regulations in the country.Originality/valueThe study adds to the debate on corporate environmental accountability practices engendering insights from the Nigerian oil and gas and cement industry. The paper demonstrates how companies in emerging economies can capture state regulations and how rendering environmental accountability becomes more of rhetoric than a reality with little impacts on the welfare of people and society.

The Nigerian Local Content Policy and Its Impact on Sustainable Economic Value Creation

The question of how adopting local content policy (LC policy) benefits the economic growth of developing oil-rich countries is not new. It is a continuous debate that often centers on increasing the value-added that LC policy can create within the oil industry. In Nigeria, the impact of LC policy in local value creation has generated divergent views. The high cost of funds is a factor that jeopardizes the indigenous oil service companies’ ability to compete effectively with their foreign counterparts who are well endowed with capital. Policy makers in the Nigerian oil and gas industry must seriously consider the idea of establishing a strong energy bank that would empower local contractors/investors. This would increase their level of participation and give them the necessary experience that would engender technology transfer. Technology transfer should be well programmed and aggressively pursued if economic, military and political advantages are to be guaranteed. Nigeria, therefore, needs her own unique strategy of technological progress pursued with all seriousness if Nigerians are to make any meaningful impact soon. The newly created Nigerian Content Development and Monitoring Board, NCDMB, (charged with the responsibility of strictly enforcing compliance) must work assiduously for the success of the local content policy.

The Nigerian Oil and Gas Industry Content Development Act and GATT Treaty Obligations: On a Path of Harmony or Discord?

The Nigerian Oil and Gas Industry Content Development Act of 2010 prescribe local content requirements to promote the patronage of Nigerian products and services by operators in the oil and gas industry. Local content requirements however appear to violate obligations under the World Trade Organization’s (WTO) General Agreement on Tariffs and Trade (GATT) (1994) of which Nigeria is a member. This article examines provisions of the Act and Nigeria’s obligations under the GATT with a view to determining whether the provisions of the Act are in violation of GATT obligations, and whether those violations are covered by any of the exemptions under the GATT. The article finds that sections 10(1) (a), 11(1), 12 and 13 of the Act, which favor the use of local products and materials for projects in the oil and gas industry, contravene the national treatment obligations under Article III of GATT. The article also finds section 53 of the Act to be in violation of the obligation to ensure the general elimination of quantitative restrictions under Article XI:1 of GATT. However, the article suggests that GATT exemptions justify Nigeria’s application of local content measures in the industry. Nigeria can rely on Article XVIII of GATT to apply local content measures for the purpose of promoting economic development and improving living standards in the country. Besides, Nigeria can rely on Articles XII: 1/2 and XIX:1 of GATT to apply local content measures that restrict fabricated/welded metal products imports in order to prevent a serious decline in monetary reserves and also safeguard domestic producers of similar products from “serious injury” that may arise from the increased imports of such products.
 Keywords: GATT; Local content requirements; Nigeria; WTO obligations; Oil and gas industry.

An Analysis of the Nigerian Gas Sector in Relation to the Policies Legal and Institutional Framework: The Need for Reform

Nigeria is a gas economy with specs of oil in it thrives on its constant exploitation of its oil resources with little regard for the full exploitation and utilization of its gas resources. Nigeria holds an estimated 190 trillion Cubic feet (Tcf) of proven natural gas reserves comprising associated gas and non-associated gas, making her the 9th largest gas reserve holder in the world and the largest in Africa. The road for reforms in the Nigerian oil and gas industry began with the inauguration of the oil and gas implementation committee in the year 2000 under the Olusegun regime which brought out a draft petroleum industry bill which later was changed into various versions before being passed on May 25, 2017. As the petroleum industry governance bill with the creation of a new regulatory NPRC (Nigerian Petroleum Regulatory Agency), which will take over the petroleum inspectorate, the department of petroleum resources, the petroleum products pricing Regulatory Agency. Also, two new companies were created under the bill, which includes; Nigerian Petroleum Assets Management Company and the Nigerian Petroleum Company, where the assets and liabilities of the Nigerian National Petroleum Corporation will be shared by these companies and the National Petroleum Company will operate as a fully independent commercial entity. Before this development, the gas industry in Nigeria lacked proper policies, structure, a regulatory and institutional framework to implement policies. This led to the creation of the Nigerian Gas Master Plan which was a blueprint to ensure a wholly competitive, market-driven domestic gas sector by increasing the supply of gas into the domestic market. This plan led to the National Domestic Gas Supply and Pricing policy coming into place, which brought with it the Domestic supply Obligations (DSO) supported by the Domestic Supply Obligation Regulations, given to various oil producers to close supply gaps in the domestic gas market and institutions such as the Nigerian Gas Company, Gas Aggregation Company of Nigeria were created as major agents to ensure the commercialization of gas in Nigeria’s domestic market. The National Domestic Gas Supply and Pricing Policy were backed up by the National Domestic Gas Supply and pricing regulation. All these policies, regulations, and more have helped in the building up of the gas industry in Nigeria. Also structurally with the aid of the gas network codes, Nigeria will be able to have a detailed outline of its present pipeline system structures all over the country and the work-ability of the systems available. Though we as a nation can boost the West African Gas Pipeline, which is a trans-boundary pipeline system for the exportation of gas to West African countries. Also, there is the Escracvos Lagos Pipeline Systems (ELPS) which transport gas to various power plants within Nigeria. The National Petroleum Investment Management Services (NAPIMS) has assisted in the enhancement of the gas industry and the power sector through its joint venture with various international oil companies for the exploitation of gas and through the DSO scheme supplies gas to various IPPs in Nigeria thereby curbing the current power crisis gradually.

A Review of Asset Retirement Obligations of Nigerian Oil Companies

Asset Retirement Obligation (ARO) is becoming the focus of many oil and gas companies around the world. It is a critical aspect of the Exploration and Production business which has suffered professional neglect for too long. As a subject matter, the principles of ARO owe credence to both national and international legislative perspectives. Its future impact equally draws from visible and disruptive environmental dimension. It is one link that connects the obligation of oil companies to their host governments and surviving communities. ARO will play a major role in valuation of Nigerian petroleum assets. It can also provide a regulatory mechanism to hold a licensee accountable to Nigerian legislation governing environmental liability for field reclamation and retirement of oil & gas installations by end of useful (economic) life of a project. Viewed as the potential elephant in the room, this lifecycle environmental liability can sometimes exceed terminal asset value, unless it is carefully managed. Experts believe that Nigeria’s ARO liability may exceed $9 Billion USD if properly assessed. More so, establishing ARO will help the regulator manage and enforce the law as well as bind the licensees to their contractual obligation to Department of Petroleum Resources (DPR) and various lenders. To define ARO, certain legislative, financial, technical, environmental and commercial criteria must be considered when estimating and assigning liability. The objective is to identify existing gaps in the Nigerian fiscal, legislative and regulatory practices and proffer ways to improve the situation going forward. This paper therefore reviews the key issues relating to Nigeria’s ARO, ranging from international to domestic legislative provisions, which include, but not limited to laws, regulations and guidelines. On one hand, it highlights relevant global best practices on the subject and makes policy recommendations as suggestions of what can be done to close existing compliance gaps. On another hand, it also outlines various schemes that Nigeria and its operators can adopt to safeguard their long-term economic and environmental interests. Consequently, the proposal could form one of the cornerstones upon which a future abandonment blueprint can be developed for Nigeria starting from proactive and retroactive implementation of the proposed framework.

Impact of Chinese Foreign Direct Investment in Nigerian Oil Sector

The purpose of this study is to investigate the effects of foreign direct investment by Chinese investors in the oil- Sector in Nigeria. This study explores the impact of foreign direct investment on the Nigeria oil sector. The secondary data originates from 2018. The analysis results show that China's opening to direct trade in Nigeria's oil sector has consequences. In addition, there is no significant impact on Nigeria's oil market size and infrastructural development. This result supports the trend of results from similar literature studies. Based on these results, the study recommends paying particular attention to the introduction of new promotional rules necessary to support the country's economic objectives. The aim is to improve the flow of economic growth and direct investment into Nigeria. The main conclusion of the analysis is that Nigeria, as a country, has not yet deduced its potential (taking into account available resources and size of the market) in order to attract foreign investment. Keywords: Foreign Direct Investment , Nigeria, Oil Sector, Economics, China DOI: 10.7176/JESD/11-16-03 Publication date: August 31 st 2020

Challenges and Reforms in the Nigerian Oil and Gas Sector

Since the exploration of Oil and Gas gain huge commercial essence in the economy of Nigeria,the battle to strike a balance between maximizing revenue, wooing investors and protecting the people and environment of host communities, has remain till date a mirage. While time is of essence, the leg dragging attitude towards reforms and the non passage of the Petroleum Industrial Bill has created an atmosphere of uncertainty in the industry, scaring potential investors away. This paper evaluates the current potentials of the Oil and Gas industry, its reforms and challenges.

EDXRF analysis and risks assessment of potentially toxic elements in sand fraction (tailing) of Nigerian oil sands

Elemental composition of sand fraction of Nigerian oil sand was determined with a view to assessing the human and ecological risks to the sand fractions. Soxhlet extraction of bitumen from the oil sand was done using toluene as the extracting solvent. Elemental analysis was done using energy-dispersive X-ray fluorescence spectrophotometry and risks calculated using elemental concentrations as variables. Fe had the highest mean concentration (9453 ± 1477.72 µg/g), while As had the least mean concentration (81.75 ± 17.91 µg/g) in the sand fractions. It was observed that the elemental concentrations in this study were comparatively higher than those of Nigerian oil sands and bitumen, indicating that the larger percentages of the elements were extracted into the sand fraction which is part of the tailings (including water) that will be discarded as wastes during the recovery of bitumen from the oil sands. Close inter-element clustering existed between the elements (Fe and V) and (Cu, As, Nb, Sc, Ga, Rb, Ca, Se, V, Mn, Zn, K, Ti, Ni, Sr and Zr), indicating chemical affinity and/or similar sources. Contamination factor results indicated varying degrees of contamination by the elements, while modified degree of contamination (mCd > 32) indicated an ultra-high degree of contamination of the sand fractions by the elements. Pollution load index (PLI > 1) indicated deterioration of site quality, while potential ecological risk index and modified ecological risk index results indicated very high ecological risks by the elements. Study concluded that the elemental levels were high enough to degrade the environment and cause ill-heath to humans upon long exposure if the sand fraction (tailing) is disposed indiscriminately. Therefore, regular environmental monitoring assessment should be carried out to screen uncritical disposal of tailings during the development of the natural resource.