International Journal of Engineering Management

Submit a Manuscript

Publishing with us to make your research visible to the widest possible audience.

Propose a Special Issue

Building a community of authors and readers to discuss the latest research and develop new ideas.

Factors Influencing Oil and Gas Project Delivery in Nigeria: Cost Management Perspective

Overtime, cost management of construction projects in the Nigeria oil and gas sector has been branded inadequate with critical stakeholders standing aloof from offering requisite expertise to achieve efficiency. Based on pertinent lack of critical literature narrative about the practice of cost management in the oil and gas sector generally and in Nigeria specifically, this study evaluated the issues inhibiting cost management of oil refinery. Using a purposive sample size of 36 construction professionals in the oil and gas sector obtained through snowballing in Rivers state, Nigeria, structured questionnaire was employed to collect data that were analysed using mean item score and Chi-Square. The result revealed that issues dealing with low education, skills, estimating efficiency, non-involvement of core cost management professionals and change in scope as critical issues for affecting the efficiency of cost management in oil refinery construction projects. All the 25 factors evaluated were significant mean item scores (3.01 - 3.94) and the null hypothesis was rejected (p-values < 0.000) to show the consistency of the mean ranking. The study buttresses that inadequate cost management practice in the Nigerian oil and gas sector is due to this range of factors. Recommendations towards improving the state of cost management practice in the sector are directed towards the need to improve the validated barriers as precursors of inefficiencies in the sector.

Cost Management, Cost Management Professionals, Barriers, Efficiency and Refinery

APA Style

Asuquo Henry Okpo, Ukpong Nsemo Sylvester, Jima Offiong. (2023). Factors Influencing Oil and Gas Project Delivery in Nigeria: Cost Management Perspective. International Journal of Engineering Management, 7(1), 1-8. https://doi.org/10.11648/j.ijem.20230701.11

ACS Style

Asuquo Henry Okpo; Ukpong Nsemo Sylvester; Jima Offiong. Factors Influencing Oil and Gas Project Delivery in Nigeria: Cost Management Perspective. Int. J. Eng. Manag. 2023, 7(1), 1-8. doi: 10.11648/j.ijem.20230701.11

AMA Style

Asuquo Henry Okpo, Ukpong Nsemo Sylvester, Jima Offiong. Factors Influencing Oil and Gas Project Delivery in Nigeria: Cost Management Perspective. Int J Eng Manag. 2023;7(1):1-8. doi: 10.11648/j.ijem.20230701.11

Copyright © 2023 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

1. Adindu, C., Ekung, S. and Ukpong, E. (2022). Green cost premium as the dynamics of practice: a critical review. Journal of Project Management, 7, 133-146.
2. Adu, E. T., Ekung, S. and Lashinde, A. T. (2020). Key causes of variation orders in public construction projects in South-South of Nigeria: an exploratory factor analysis. Civil and Environmental Research, 12 (1), 47-59.
3. Ajator, U. (2014). Costing of oil and gas projects for efficient management and sustainability. IOSR Journal of Environmental Science, Toxicology and Food Technology, 8 (12), 70-84.
4. Akal, A. Y. B. A. (2016). Financial risks contributing to delay of oil and gas projects in Egypt. International Journal of Accounting, Finance and Risk Management, 1 (1), 19-24. doi: 10.11648/j.ijafrm.20160101.13.
5. Akal, A., Abu El-Maaty, A., and El-Hamrawy, S. (2016). A circular framework for evaluating highway construction projects success: AHP approach. Civil Engineering Journal, 2 (7), 324-333.
6. Ekung, S. (2015). Risk and financial management practice in the construction in Nigeria: System thinking perspective. International Letters of Social Science and Humanistic Sciences, 41, 165-175.
7. Ekung, S. Okonkwo, E. and Ejekwu, T. (2018). Alternative Project Systems for Private Sector Participation in Road Infrastructure Delivery in Nigeria, PM World Journal, VII (X), 1-18.
8. Ekung, S.; Agu, L.; and Iheama, B. (2017). Influence of Project Governance on Project Performance: Evidence from Nigerian Case Studies, PM World Journal, VI (VIII), 1-18.
9. Fahim, M. A., Alsahhaf, T. A. and Elkilani, A. (2010). Safety in Petroleum Refineries. In: M. A. Fahim, T. A. Alsahhaf and A. Elkilani (2010). Fundamentals of Petroleum Refining. Amsterdam, Elsevier, 357-376.
10. Fahim, M. A., Alsahhaf, T. A. and Elkilani, A. (2010). Refinery Economics. In: M. A. Fahim, T. A. Alsahhaf and A. Elkilani (2010). Fundamentals of Petroleum Refining, Amsterdam, Elsevier, 403-421.
11. Fahim, M. A., Alsahhaf, T. A. and Elkilani, A. (2010). Environmental Aspects in Refining. In: M. A. Fahim, T. A. Alsahhaf and A. Elkilani (2010). Fundamentals of Petroleum Refining, Amsterdam, Elsevier, 423-455.
12. Favennec, J. P. (2001). Oil and Energy: Refinery Operation and Management. Fifth Editions Technip. 5, UK.
13. Gary, J. H. (2007). Petroleum refining: technology and economics. Boca Raton, Fla.: London, Boca Raton, Fla.: CRC.
14. Iman, G. Jamshid, S. and Mohamad, F. (2020). Root cause analysis of construction oil and gas projects delay from engineering procurement and construction point of view using analytical hieararchy process (AHP): case study for Iranian oil companies. Industrial Engineering Management, Case Report, 9 (1), 1-15 DOI: 10.37421/iem.2020.9.284.
15. Mordi, M. C. (2014). Nigeria Refineries: The case for Privatisation. Retrieved 15 December, 2021, from http://businessdayonline.com/2014/04/nigeria-refineries-the-case-for-privatization/#.U5HFKKLKZ8F.
16. NNPC (2010). About NNPC; Coporate info. Retrieved 14 December, 2021, from http://www.nnpcgroup.com/AboutNNPC/CorporateInfo.aspx.
17. Oaikhena, E. and Ekung, S. (2018). Assessing the impact of transactional contract on external stakeholders’ engagement in traditionally procured projects. American Journal of Engineering, Technology and Society, 5 (3), 62-71.
18. Obi, C. I. (2010). The petroleum industry: A paradox or (sp) oiler of development? Journal of Contemporary African Studies, 28 (4), 443-457.
19. Okafor, E. E. (2007). Rethinking African development: a critical overview of recent developments in the petroleum sub-sector in Nigeria. Journal of Social Science, 15 (1), 83-93.
20. Okonkwo, C., Evans, U. F. and Ekung, S. (2022). Unearthing direct and indirect material waste-related factors underpinning cost overruns in construction projects. International Journal of Construction Management, DOI: 10.1080/15623599.2022.2052431.
21. OPEC (2014). Downstream Capacity Additions and Investments in OPEC Member Countries." Retrieved 13 December, 2021, from http://www.opec.org/opec_web/en/650.htm.
22. Plummer, D. P. (1973). The Petroleum Refinery. In: G. D. Hobson and W. Pohl. (1973). Modern Petroleum Technology, Barking, Barking: Applied Science Publishers, 220-231.
23. Sa'idi, E. (2014). Fuzzy risk modeling of process operations in the oil and gas refineries. Journal of Loss Prevention in the Process Industries, 30 (10), 63-73. Schedule and Cost Overrun. Journal of Student Research, ISSN: 2167-1907 www.JSR.org
24. Speight, J. G. (2011). Refining Processes. In: J. G. Speight. (2014). The Refinery of the Future. Boston, William Andrew Publishing, 39-80.
25. Speight, J. G. (2014). Materials of Construction for Refinery Units. In J. G. Speight. (2014). Oil and Gas Corrosion Prevention. Boston, Gulf Professional Publishing: 3-37.
26. Walls, W. D. (2010). Petroleum refining industry in China. Energy Policy 38 (5), 2110-2115.
27. Al Sadi, H. and Dawood, M. (2021). Oil and Gas Projects in Sultanate of Oman: Construction Schedule and Cost Overrun. Journal of Student Research 10 (3).