A comprehensive investigation on performance of oil and gas development in Nigeria: Technical and non-technical analyses

Zhenhua Rui; Kehang Cui; Xiaoqing Wang; Jung Hoon Chun; Yuwei Li; Zhien Zhang; Jun Lu; Gang Chen; Xiyu Zhou; Shirish Patil

doi:10.1016/j.energy.2018.06.027

A comprehensive investigation on performance of oil and gas development in Nigeria: Technical and non-technical analyses

Zhenhua Rui^*
, Kehang Cui
, Xiaoqing Wang
, Jung Hoon Chun
, Yuwei Li
, Zhien Zhang
, Jun Lu
, Gang Chen
, Xiyu Zhou
, Shirish Patil

^*Corresponding author for this work

Department of Petroleum Engineering

Research output: Contribution to journal › Article › peer-review

85 Scopus citations

Abstract

Nigeria is a critical player in the energy industry. However, the industry has concerns over the underperformance of Nigerian oil and gas projects. This study involved comprehensive and quantitative analysis of Nigerian oil and gas project performance from technical and non-technical perspectives with data from 65 projects. Nigerian projects have a high average cost overrun of 38% with an SD of 39%, time overrun of 37% with an SD of 41%, fatality rate of 0.027, and oil spillage ratio of 18.51. The overall performance of Nigerian projects is much worse than that for their global peers. The results demonstrate that Nigerian oil and gas projects are of low subsurface complexity and present low technology challenges, which are advantages for field development; therefore, subsurface complexity and technology challenges are not the major causes of the poor performance. However, non-technical factors (local content, community, security, and partnership) play a significant role. In the study, the degree of the factor's effect is quantified and categorized into groups for guidance. Further, a set of recommended practices was developed based on the risk level to assist project planners, international companies, investors, and policymakers to mitigate risks of developing oil and gas projects.

Original language	English
Pages (from-to)	666-680
Number of pages	15
Journal	Energy
Volume	158
DOIs	https://doi.org/10.1016/j.energy.2018.06.027
State	Published - 1 Sep 2018

Bibliographical note

Publisher Copyright:
© 2018 Elsevier Ltd

Keywords

Cost and schedule
Nigerian oil and gas
Project performance
Safety and environment
Subsurface characteristics
Technical and non-technical analyses

ASJC Scopus subject areas

Civil and Structural Engineering
Modeling and Simulation
Renewable Energy, Sustainability and the Environment
Building and Construction
Fuel Technology
Energy Engineering and Power Technology
Pollution
Mechanical Engineering
General Energy
Management, Monitoring, Policy and Law
Industrial and Manufacturing Engineering
Electrical and Electronic Engineering

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title = "A comprehensive investigation on performance of oil and gas development in Nigeria: Technical and non-technical analyses",

abstract = "Nigeria is a critical player in the energy industry. However, the industry has concerns over the underperformance of Nigerian oil and gas projects. This study involved comprehensive and quantitative analysis of Nigerian oil and gas project performance from technical and non-technical perspectives with data from 65 projects. Nigerian projects have a high average cost overrun of 38\% with an SD of 39\%, time overrun of 37\% with an SD of 41\%, fatality rate of 0.027, and oil spillage ratio of 18.51. The overall performance of Nigerian projects is much worse than that for their global peers. The results demonstrate that Nigerian oil and gas projects are of low subsurface complexity and present low technology challenges, which are advantages for field development; therefore, subsurface complexity and technology challenges are not the major causes of the poor performance. However, non-technical factors (local content, community, security, and partnership) play a significant role. In the study, the degree of the factor's effect is quantified and categorized into groups for guidance. Further, a set of recommended practices was developed based on the risk level to assist project planners, international companies, investors, and policymakers to mitigate risks of developing oil and gas projects.",

keywords = "Cost and schedule, Nigerian oil and gas, Project performance, Safety and environment, Subsurface characteristics, Technical and non-technical analyses",

author = "Zhenhua Rui and Kehang Cui and Xiaoqing Wang and Chun, \{Jung Hoon\} and Yuwei Li and Zhien Zhang and Jun Lu and Gang Chen and Xiyu Zhou and Shirish Patil",

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doi = "10.1016/j.energy.2018.06.027",

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AU - Chun, Jung Hoon

AU - Li, Yuwei

AU - Zhang, Zhien

AU - Lu, Jun

AU - Chen, Gang

AU - Zhou, Xiyu

AU - Patil, Shirish

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AB - Nigeria is a critical player in the energy industry. However, the industry has concerns over the underperformance of Nigerian oil and gas projects. This study involved comprehensive and quantitative analysis of Nigerian oil and gas project performance from technical and non-technical perspectives with data from 65 projects. Nigerian projects have a high average cost overrun of 38% with an SD of 39%, time overrun of 37% with an SD of 41%, fatality rate of 0.027, and oil spillage ratio of 18.51. The overall performance of Nigerian projects is much worse than that for their global peers. The results demonstrate that Nigerian oil and gas projects are of low subsurface complexity and present low technology challenges, which are advantages for field development; therefore, subsurface complexity and technology challenges are not the major causes of the poor performance. However, non-technical factors (local content, community, security, and partnership) play a significant role. In the study, the degree of the factor's effect is quantified and categorized into groups for guidance. Further, a set of recommended practices was developed based on the risk level to assist project planners, international companies, investors, and policymakers to mitigate risks of developing oil and gas projects.

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JO - Energy

JF - Energy

ER -

A comprehensive investigation on performance of oil and gas development in Nigeria: Technical and non-technical analyses

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

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