Oil Companies In Nigeria Research Articles

Implication of Ifrs 6 on the Financial Performance of Selected Oil Companies in Nigeria

The study aimed at evaluating IFRS 6 and its impact on the financial performance of oil and gas companies. This paper looked at how the adoption of IFS 6 changed the financial outcomes of several petroleum businesses in Nigeria. Five petroleum firms were randomly selected. Data were obtained from the published financial reports, and the necessary key financial performance indices were computed. The research utilized the paired correlation and sample t-test to examine the association and dissimilarity concerning post-IFRS 6 adoption and pre-IFRS 6 profitability, financial leverage, and liquidity under these two periods. The results revealed an insignificant association for the profitability and leverage variables, but found a significant association for the working capital variable for the two periods. The paired t-test result (hypothesis 1 showed t=1.617, p-value=0.140>0.05, hypothesis 2 showed t=1.863, p-value=0.095>0.05 and hypothesis 3 showed t=1.700, p-value=0.123>0.05, all at df=9) revealed that there was no substantial disparity in profitability, financial leverage, and working capital under the post-IFRS 6 adoption and pre-IFRS 6 periods. The outcomes of the research show that IFRS 6 has no outcome on the financial performance of Nigerian petroleum companies. It recommended that, in order to improve the quality of their financial reporting, oil and gas firms should adhere to the guidelines established by the IFRS 6. This could improve performance by bringing in more investments, making it easier to get money, and letting investors and analysts compare financial reports.

Does corporate governance matter in the cleanup of reported oil spills? Evidence from Nigeria

PurposeThis study aims to examine whether corporate governance mechanisms – board size, board independence and CEO duality – influence the actions of oil companies operating in Nigeria to clean up oil spills from their facilities.Design/methodology/approachBoth binary logistic regression (linear) and random-effects logistic regression models were used to test three hypotheses using a unique data set of 1,262 oil spill events involving 24 oil companies from 2017 to 2019.FindingsThe study found that board size and board independence are positively related to oil spill cleanup.Practical implicationsPrivate oil companies in Nigeria should encourage larger and more independent boards in their corporate governance (CG) structures, as these boards may be more effective in serving the interests of stakeholders by bringing diverse knowledge and experience to the boards. Similarly, regulators should extend the enforcement of CG codes to private firms.Originality/valueTo the best of the authors’ knowledge, this is the first study that investigates the influence of CG attributes on oil spill cleanup.

Niger Delta Indigenes’ Perception of Community Participation in The Development Communication Strategies and Practices of Oil Companies in Nigeria

This study adopts the principles that underpin participatory development communication in order to highlight the ideology that guides oil corporations’ development communication practices and strategies in Nigeria. The study specifically examines the usage of Global Memorandums of Understanding (GMoUs) by oil firms to engage people in community-based development initiatives. Given Shell and Chevron's stranglehold in onshore, shallow, and deep-water exploration and development in Nigeria, 16 oil-producing localities in their operational zones were chosen at random for the study. The study's design was cross-sectional and drew from survey procedures. 400 respondents were selected through a multistage selection approach from the study’s population for the purposes of data collection and analysis. The study found that although indigenes of the Niger Delta are aware of the GMoUs programmes, they lack the knowledge to take part in them. Thus, the Niger Delta indigenous people claim that the GMoUs programmes are self-serving and need to be carefully adapted to satisfy the desire of the people for bottom-up induced development. The study suggests that development communication experts be involved in the conception and implementation of the ideas because the GMoU model, which oil companies adopted, was flawed in its conception due to a potential lack of sufficient literature review for development agents to gain the understanding needed to guide implementation.

Recovery of Nigerian Heavy Oil: Application of Steam Flooding

Aims: Nigeria has a lot of conventional and heavy oil resources. Although much of the conventional oil resources have been developed since independence, the heavy oil resources have remained underdeveloped due to low recovery based on primary production and consequently doubts about economic viability based on the current fiscal regime. This paper examines the application of Steam Flooding enhanced oil recovery (EOR) method to suitable Nigerian heavy oil reservoirs, seeks to develop a diagnostic model to predict the performance, evaluates the economics to determine the viability of the EOR method. The development of heavy oil will increase Nigeria’s oil reserves and production.
 Study Design: Data was collected for two heavy oil reservoirs from two oil companies in Nigeria following a Non-disclosure Agreement (NDA).
 Place and Duration of Study: Emerald Energy Institute, University of Port Harcourt Nigeria, 2016 - 2021.
 Methodology: The screening criteria of commercially effective EOR methods were applied to select steam flooding for the studied reservoirs. Design of Experiment (DoE) was used to evaluate the reservoirs and operating parameters and to determine their optimum values, which were then used to predict the performance of the reservoirs. The economics of the steam flood technique endorsed for the reservoirs considered were also evaluated using Discounted Cash Flow Analysis (DCFA).
 Results: These assessments confirmed that steam flooding technique was technically and economically viable for the heavy oil reservoirs considered. The steam flood was observed to have a good recovery efficiency of 24%, as against the waterflooding technique which had 13% OOIP and natural depletion of 9% for the offshore reservoir. For the onshore reservoir, the recovery efficiency was 20% for steam flood, and 4% for natural depletion. The economic analysis showed that even at a worst-case heavy oil price of US$15, the project was viable.
 Conclusion: Steam flooding is viable, can be applied to develop heavy oil reservoirs in Nigeria that meet the screening criteria, and thus increase national oil reserve and production.
 Recommendation: The fiscal policy should be adjusted, especially the petroleum profit tax from 85% to 50% as an incentive to operators and investors to embark on steam flooding and other EOR methods.

Empowerment of rural young people in informal farm entrepreneurship: the role of corporate social responsibility in Nigeria’s oil producing communities

Purpose The purpose of this paper is to critically examine the corporate social responsibility (CSR) initiatives of multinational oil companies in Nigeria. Its main focus is to investigate the impact of the global memorandum of understanding (GMoU) on equipping rural young people with essential farming skills and knowledge for the adoption and application of modern agricultural inputs in the Niger Delta region. Design/methodology/approach This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 800 rural young people were sampled across the oil producing region. Findings The results from the use of combined propensity score matching and logit model indicate that the GMoU model has a significant impact on the development of informal farm entrepreneurship generally, but somewhat undermined rural young people in the targeted agricultural clusters. Practical implications This suggests that youth-specific CSR farm projects can be effective in providing young people with the extra push needed to tackle the knowledge gap and poor agronomic that erect the below-per yield and lack of competitiveness of small-holder farmers in the region. Social implications It implies that a coherent and integrated CSR response from the business would be necessary to unlock investment opportunities on young people in farms for agricultural competitiveness and food security in Africa. Originality/value This study adds to the literature on informal farm entrepreneurship and rural communities’ debate in sub-Saharan Africa. It concludes that business has obligation to help in solving problems of youth unemployment in developing countries.

ACCOUNTING INFORMATION QUALITY AND CORPORATE PERFORMANCE OF OIL AND GAS COMPANIES IN NIGERIA

But knowing the unknown and therefore estimating the relationship between accounting information quality and corporate performance are still a difficult task. The aim of this empirical study is to explore the relationship between the accounting information quality and corporate performance of oil and gas companies in Nigeria. Data on different types of accounting information quality and return on equity were primarily collected from the respondents and analyzed using ordinary least square regression analysis the data with the aid of statistical package for social sciences version 25.0. The empirical result indicates that accounting information quality significantly relate to return n equity; explaining about 85.1% of the total variation in return and equity. Relevance, faithful representation was each found to significantly relate to return on equity. The study empirically conclude that accounting information quality has the potency to make significant contribution to quoted financial performance of oil and gas companies and recommends that having investigated theoretical and empirical issues, also considering the findings and conclusion, the following recommendations were made: There should be need for preparers of accounting information to improve on the accounting information quality devoid of window dressing and creative accounting, regular disclosure, transparency and accountability of such accounting information is required since investors are sensitive to qualitative and quantitative accounting information in assessing the performance of quoted oil companies in and outside Nigeria. Also in line with qualitative and quantitative of accounting information quality, financial statements of quoted oil companies in Nigeria should be prepared and presented according to laid down regulations and ethical standards duly observed to ensure accounting information presented for among users, most and public consumption do represent the oil companies’ economic reality during reported periods.

Work Socialization and Workplace Conflict in Major Oil Companies in Nigeria

This study investigated the relationship between work socialization and workplace conflict in major oil companies in Nigeria. The study adopted a cross-sectional survey in its investigation of the variables. Primary data was generated through the self-administered questionnaire. The population for the study was two hundred and fifty-three (253) employees of seven (7) selected manufacturing companies in Port Harcourt. A total of 7 major multinational oil companies were investigated. 35 administrative management staff were sampled using the stratified sampling technique. The spearman correlation statistic was used in testing the hypotheses formulated. The reliability of the instrument was achieved by the use of the Cronbach Alpha coefficient with all the items scoring above 0.70. The hypotheses were tested using the Spearman’s Rank Order Correlation Coefficient with the aid of Statistical Package for Social Sciences version 23.0. The tests were carried out at a 95% confidence interval and a 0.05 level of significance. Results from analysis of data revealed that socialization had both significant and negative influence on interpersonal, intrapersonal, inter-group and intra-group conflicts. The study recommends that socialization should be part and parcel of organizational fabric to attain great heights in terms of workforce cooperation which eliminates workplace conflict; and multinational oil companies should develop means to have a well-defined employee-oriented culture as this will boost socio-cultural diversity management within the employees and as such lead to constructive workplace conflict and harmony.

Evaluation of Heavy Metals and Total Hydrocarbon Concentration in the Qua Iboe River Estuary, Akwa Ibom State, Nigeria

The research assessed the concentration level of heavy metals and total hydrocarbon in Qua Iboe River Estuary of Akwa Ibom State, Nigeria during the months of April, May and June. The experimental research design was adopted and a total of 72 water samples were collected on weekly basis from ST1, ST2 and ST3 during high and low tides in thoroughly-rinsed 1-litre plastic containers to avoid adulteration of the samples. Samples were analyzed in-situ and in the laboratory using standard methods. The results of the concentrations of the sampled parameters during high tide included: Cr (0.003-0.21mgl-1), Fe (0.123-0.511mgl-1); Mn (0.018-0.66mgl-1), Pb (0.105-0.603mgl-1), Mg (0.42-0.623mgl-1), Cu (0.00-0.32mgl-1) and THC (0.12-0.88mgl-1)while the low tide concentrations showed: Cr (0.001-0.061mgl-1), Fe (0.56-4.11mgl-1), Mn (0.002-0.13mgl-1), Pb (0.011-0.211mgl-1), Mg (0.108-1.342mgl-1), Cu (0.011-0.076mgl-1) and THC (0.23-0.80mgl-1). The concentrations of Hg and As were negligible throughout the study. Analysis revealed that THC varied significantly across the sampled stations (ANOVA, P <0.001). Pollution Index, PI <1 for Ni, Mn, Na, Hg, As, Mg and Cu, implied that there was no pollution in the estuary. Fe showed that the estuary was slightly polluted with PI 1-2; Cr, V and THC recorded PI 2-3 signifying that the water was moderately polluted; PI >5 for Pb revealed that the estuary was seriously polluted with lead. The oil spills by ExxonMobil’s offshore platforms in the area, the heinous practices of waste dumping along the coast have resulted in the high THC and heavy metals concentrations found in the water samples. Hence, the water in Qua Iboe River Estuary is polluted and not safe for personal or domestic uses. The study recommended that Exxon Mobil and other oil companies in Nigeria should adhere strictly to international best practices in oil exploration/exploitation, environmental conservation, maintenance of equipment and safety of their infrastructure should be their priority. Prompt actions should be taken towards clean-up exercises in case of oil spill incidents in the area and proper, modern sewage and solid wastes disposal mechanism should be put in place by the host communities.
 
 Received: 31 January 2021 / Accepted: 27 February 2021 / Published: 7 March 2021

Green Criminology and Degradation of the Environment by Activities of Multinational Oil Companies in Nigeria’s Niger Delta

Green Criminology and Degradation of the Environment by Activities of Multinational Oil Companies in Nigeria’s Niger Delta

Environmental Reporting and Sustainbility Reports in Oil Companies in Nigeria

Environmental reporting is crucial for corporate survival as it builds corporate image, but certain procedures and regulations must be put in place to guide such reporting. Accordingly, this study examined environmental reporting and sustainability reports by oil companies in Nigeria with the aim of assessing the relationship between corporate environmental reporting and determinant of sustainability reports. Ex-post-facto and survey research design were adopted and data were sourced from structured questionnaires administered to corporate respondents and a 56 item sustainability reporting index adapted from the Global Reporting Initiative. Descriptive statistics were carried out, one way and two factors ANOVA and Post hoc test were all conducted. The study provided evidence of a positive and significant variation between corporate environmental reporting and determinants of sustainability reports in petroleum companies in Nigeria. The study recommended that management of petroleum companies should ensure compliance with corporate sustainability reporting.

English

Why are host communities where oil companies are operating in the Niger Delta region of Nigeria undeveloped despite huge contribution of petroleum resources to the economy? This question has led to debates among scholars on the role and operation of multinational oil companies in Nigeria. To address this question, detailed literature search was conducted including reviewing archival documents, company information and media reports in order to gain a richer understanding why there is so much poverty, absence of social mobility and negation of socio-economic and infrastructural development in the Niger Delta region. This study also examines how Nigeria’s abundant wealth is distributed by some public agencies in oil and gas sector in contemporary Nigeria. The study found that transformative leadership would involve not only the government, but also collaboration and support from crude oil companies, NGOs as well as the local communities. Essentially, the government, politicians, local leaders and crude oil companies must provide a fertile business footprint which can allow less privileged people and communities within and outside the Niger Delta region to develop their capacity and creativity. This study recommends that the concept of community co-operatives which would make a difference to the wider population in the region is a model that must be embraced. Key words: Nigeria, Niger Delta, corporate governance, CSR, stakeholders, public agencies, wealth distribution, economic development, poverty alleviation.

Corporate social responsibility reporting of local oil companies in Nigeria

Purpose The purpose of this paper is to analyze annual reports through content analysis. Corporate social responsibility reporting (CSRR) extent and type are measured by the number of sentences. CSRR are further classified into three subcategories according to whether they are negative, neutral or positive reports and then their proportions compared through descriptive analysis. Design/methodology/approach This paper seeks to examine and identify factors influencing CSRR practices of local oil companies (LOCs) in Nigeria. It aims at distinguishing CSRR levels by examining both the quantity and quality of reporting. Findings For the extent of CSRR, employee-related information was the most reported category with community reports being of greater quality in the LOCs. The majority of the total CSRR in the LOCs was positive with very little evidence of negative news. Research limitations/implications The measurement of CSRR focuses only on annual reports, without consideration of other reporting media, such as standalone reports. CSRR are assumed to be voluntary for the companies, and they may choose not to report any information in annual reports, as there are no regulations or reporting guidelines in Nigeria to be followed. Originality/value The main contribution of this study lies in identifying the factors that have led to diversity and uniqueness in CSRR in LOCs. As such, this study seeks to contribute to the development of understanding multiple factors that could give rise to changing patterns of CSRR.

Empirical Analysis of Triple Bottom Line Accounting on Corporate Profitability of Selected Oil Companies in Nigeria

Empirical Analysis of Triple Bottom Line Accounting on Corporate Profitability of Selected Oil Companies in Nigeria

An Exploratory Study of the strategeic of third party logistics for cost Reduction And customer statisfactiin the oil and Gas

ABSTRACT This paper investigates perspectives and trends in the outsourcing of logistics functions by Nigerian oil and gas firms in order to further comprehend the impact of deploying 3PLs on performance, particularly with regard to cost-savings and user-firm’s satisfaction. The research participants are mainly top management staff consisting of managers and supervisors in charge of areas of logistics, supply chain and procurement. A total of seven (7) oil and gas firms listed in the directory of oil companies in Nigeria took part in the study. The study adopted a quantitative approach, gathering data through the administration of an online questionnaire survey, and resultant data consequently analysed. Findings show that oil companies in Nigeria mainly outsource in order gain cost-savings (through price-reduction) in procuring logistics operations, financial stability and opportunity to use the expertise and skills of 3PLs. Results indicate that outsourcing of logistics has a significant impact on overall firm’s performance, with particular relation to the level of improved productivity, organisational effectiveness and acquisition of new customers. However, given hesitation by some stakeholders, 3PLs in the Nigerian market are expected to improve upon their current services in order to attract more patronage. On the whole, firms outsourcing services showed optimism that using 3PLs will continue to generate a positive impact on the performance of their organisations.

Corporate social responsibility reporting of international oil companies in Nigeria

PurposeThis study aims to identify factors influencing corporate social responsibility reporting (CSRR) practices of international oil companies (IOCs) in Nigeria. It aims at distinguishing CSRR levels by examining both the quantity and quality of reporting.Design/methodology/approachThe paper analyses annual reports through content analysis. CSRR extent and type are measured by the number of sentences. CSRR are further classified into three subcategories according to whether they are negative, neutral or positive reports and then their proportions compared through descriptive analysis.FindingsFor the extent and quality of CSRR, community was the most reported category. The majority of the total CSRR in the IOCs is positive with little evidence of negative news. None of the IOCs in the sample reported on the environment in their annual reports.Research limitations/implicationsThe measurement of CSRR focuses only on annual reports, without consideration of other reporting media such as standalone reports and corporate websites. CSRR are assumed to be voluntary for the companies and they may choose not to report any information in annual reports, as there are no regulations or reporting guidelines in Nigeria to be followed.Practical implicationsThe results reveal the absence of environmental reporting in the CSRR of IOCs in Nigeria suggests that they are less concerned with meeting local demands for accountability. The study recommends the need for regulatory intervention on the part of the Nigerian Government.Social implicationsThe findings of study indicate that predominant existence of positive CSRR news among all the IOCs suggests there’s an attempt to encourage stakeholders and the public to believe that they are conscious of society and the environment.Originality/valueThe main contribution of this study lies in identifying the factors that have led to diversity and uniqueness in CSRR in IOCs. As such, this study seeks to contribute to the development of understanding multiple factors that could give rise to changing patterns of CSRR.

Petroleum Accounting Methods and Financial Performance of Quoted Oil Companies in Nigeria

Exploration and production of oil and gas companies globally prepare their financial statements using either full cost or successful efforts historical accounting methods. Although, there have been numerous attempts by different standard setting organs to narrow the choice of accounting methods so that the financial statements of petroleum companies are more comparable, the question as to which historical accounting method provides investors with more informative numbers, and this should be mandated for all oil and gas companies is still unresolved. This study aimed to analyze empirically, the relationship between petroleum accounting methods and financial performance of quoted oil and natural gas companies in Nigeria. Time series data on different types of petroleum accounting methods an return on equity from 2009-2019 were collected from the central bank of Nigeria statistical bulletin, National Bureau of Statistics, Annual Central Bank of Nigerian reports and Federal Inland Revenue Service. Ordinary least regression analysis, Auto-Regressive Distribution Lag (ARDL) cointegration and error correction model was used in analyzing the data. The empirical results indicate that petroleum accounting methods significantly relate to financial performance; explaining about 79.3% of the total variation in return on equity. The empirical study therefore concludes that petroleum accounting methods has the potency to make significant contribution to financial performance and recommends that companies that need more asset value should use full cost method while companies that already have large assets should use successful effort method. Companies with low standard deviation should adopt full cost effort method in order to beef up their capital base.

Persuasive language of responsible organisation? A critical discourse analysis of corporate social responsibility (CSR) reports of Nigerian oil companies

PurposeThe purpose of this paper is to investigate how language (choice) in CSR reports of leading oil companies in Nigeria is used to portray an image of “responsible organisation”.Design/methodology/approachThis paper draws insights from communication studies (persuasion theory) and critical discourse analysis (CDA) studies to discursively unpack all those subtle and visible, yet equally invisible, linguistic strategies (micro-level elements): wording (single words), phrases and chains of words (clauses/sentences). These linguistic strategies (micro-level elements) proxy organisational discourses (meso-level elements), which are reflective of wider social practices (macro-level elements). The authors base the investigation on CSR reports of six leading oil companies in Nigeria from 2009 to 2012.FindingsThe findings of this study reveal that (leading) Nigerian oil companies linguistically use CSR reports to persuasively construct and portray the image of “responsible organisation” in the eyes of wider stakeholders (the communities) despite serious criticism of their corporate (ir) responsibility.Originality/valueAs opposed to the previous content analysis based studies, this paper contributes to the emerging stream of CDA studies on CSR reporting by providing a finer-grained linguistic analytical schema couched in Fairclough’s (2003) approach to CDA (and persuasion theory). This helps to unravel how persuasive language/discourse of responsible organisation is enacted and reproduced. The authors thus respond to the calls for theoretical plurality in CSR reporting research by introducing persuasion theory from communication studies literature which has hitherto been rarely applied.

Group Cohesiveness and Organizational Citizenship Behavior of Oil Companies in Nigeria

The study seek to establish an empirical relationship between Group cohesiveness and organizational citizenship behavior of Oil companies in Nigeria, the cross-sectional survey design was used for the research, the population includes 663 employees of the studied oil companies with a sample size of 249, the findings reveals a significant correlation between the empirical referents of group cohesiveness and organizational citizenship behaviour. From the findings we therefore, concludes that the success and achievement of improved organizational citizenship behaviour can be achieved through the effective management of various formal or informal social networking and group processes. And based on the findings the following recommendations are made; that Organisational policies on the management of group activities and cohesiveness should be structured to enable member’s growth, support and recognition and Groups and other networking activities within the organization should be structured in such a way that appreciates and recognizes employees for their efforts, contributions as well as prevailing differences both at the individual, group and at the organizational level. How to cite this article: Johnson UU, Akopunwanne EU. Group Cohesiveness and Organizational Citizenship Behavior of Oil Companies in Nigeria.J Adv Res Qual Control Mgmt 2019; 4(1): 44-53. DOI: https://doi.org/10.24321/2582.3280.201907

Multinational oil companies in Nigeria and corporate social responsibility in the HIV/AIDS response in host communities

ABSTRACTWe assess the impact of corporate social responsibility (CSR) of multinational oil companies (MOCs) on HIV/AIDS prevalence in Nigeria’s oil-producing communities. One thousand, two hundred households were sampled across the rural communities of Niger Delta. Using logit model, the main result indicates that General Memorandum of Understandings (GMoUs) have not significantly impacted on factors behind the spread of HIV/AIDs in rural communities. This implies that the impact of the disease on MOCs business, employees and their families, contractors, business partners and the oil communities have not inclined downward. The findings suggest that CSR offers an opportunity for MOCs to help address HIV/AID prevalence through a business case for stakeholders’ health in the region. It calls for MOCs to improve GMoUs health intervention on sensitisation campaigns, funding testing and counselling centres, subsidising anti-retroviral drugs, prevention of mother-to-child transmission, rehabilitation of orphaned and vulnerable children and other cares for people living with AIDS.

Multinational Oil Companies in Nigeria and Corporate Social Responsibility in the HIV/AIDS Response in Host Communities

We assess the impact of corporate social responsibility (CSR) of multinational oil companies (MOCs) on HIV/AIDS prevalence in Nigeria’s oil producing communities. One thousand, two hundred households were sampled across the rural communities of Niger Delta. Using logit model, the main result indicates that General Memorandum of Understandings (GMoUs) have not significantly impacted on factors behind the spread of HIV/AIDS in rural communities. This implies that the impact of the disease on MOCs business, employees and their families, contractors, business partners and the oil communities has not inclined downward. The findings suggest that CSR offers an opportunity for MOCs to help address HIV/AIDS prevalence through a business case for stakeholders’ health in the region. It calls for MOCs to improve GMoUs health intervention on sensitization campaigns, funding testing and counselling centers, subsidizing anti-retroviral drugs, prevention of mother-to-child transmission, rehabilitation of orphaned and vulnerable children and other cares for people living with AIDS.