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Table 4-9: Risk ranking for Nigerian oil and gas construction projects

Rank
Risk
Code Risk factors RI
1 R12.15 Security threats from neighboring residents 0.5621
2 R12.5 Incompetence of project team members 0.!2
R12.6 "oor designs 0.#5
$ R12.# %ate interna& appro'a&s from c&ients 0.2(#$
5 R12.( "oor and inade)uate tendering 0.2!11
6 R12.1$ Inade)uate project organi*ation structure 0.2#$$
# R12.10 Changes in design 0.2$5!
! R12.11 Inade)uate budgeting and poor project p&anning 0.2#!
( R12.1 "oor project feasibi&ity studies 0.22#!
10 R12. Inefficient and poor performance of constructors 0.2125
11 R12.1# Reduced )ua&ity in procured materia&s 0.20(!
12 R12.1!
"oor coordination amongst sub+contractors and
contractors 0.1(65
1 R12.1 ,amage to -ork by third party 0.1#6$
1$ R12.!
.ureaucratic project and go'ernment appro'a&
procedures 0.1665
15 R12.12
,ifferences in practices bet-een &oca& and foreign
contractors 0.16!
16 R12.2 /n'ironmenta& protection pressure of other groups 0.15(2
1# R12.$ "oor re&ationship -ith go'ernment bodies 0.1$52
1! R12.16 %ate pro'ision or de&i'ery of materia&s 0.1$52
1( R12.20 0orking conditions deferring from contract specification 0.1112
20 R12.1( %ack of e1perience in design and construction 0.10!6
2 comprehensi'e &ist of the ranked risks as deduced from a combination of in+depth
te&ephone inter'ie-s and )uestionnaire sur'ey is sho-n in the tab&e abo'e. 3he t-enty 4205
risks are sorted according&y6 in ascending order of their o'era&& impact on oi& and gas
projects in 7igeria. 3he top ten risks -i&& then be ana&y*ed further to determine their
features6 characteristics and causes8 so that ade)uate strategies can be proposed to mitigate
the risks.
4.4.3 The analysis of the top ten risks in Nigerian oil and gas construction projects:
In &ine -ith the objecti'es of the study6 the top ten major risks in 7igerian oi& and gas
projects -i&& be ana&y*ed thorough&y. In order to ana&y*e these top ten major risks8 the mean
of occurrence and the mean of impact degree for each indi'idua& risk identified by the
respondents -here determined. 3his can be seen as sho-n in tab&e $+10 as fo&&o-s9
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Table 4-1: Top ten risks statistics for Nigerian oil and gas construction projects
Rank
Risk
code Risk :actors
;ean of
<ccurrence
:re)uency
4:r5
;ean of
Impact
,egree
4Im5
Risk
Inde1
Score
4RI5
1 R12.15
Security threats from neighboring
residents 0.# 0.#6 0.5621
2 R12.5
Incompetence of project team
members 0.51 0.65 0.!2
R12.6 "oor designs 0.$( 0.6! 0.#5
$ R12.# %ate interna& appro'a&s from c&ients 0.26 0.$! 0.2(#$
5 R12.( "oor and inade)uate tendering 0.5 0.526# 0.2!11
6 R12.1$
Inade)uate project organi*ation
structure 0.$26# 0.5( 0.2#$$
# R12.10 Changes in design 0.$66# 0.$! 0.2$5!
! R12.11
Inade)uate budgeting and poor project
p&anning 0.56 0.$26# 0.2#!
( R12.1 Improper project feasibi&ity studies 0.$26# 0.$!6# 0.22#!
10 R12.
Inefficient and poor performance of
constructors 0.$2 0.$# 0.2125
11 R12.1# Reduced )ua&ity in procured materia&s 0.$26# 0.$5 0.20(!
12 R12.1!
"oor coordination amongst sub+
contractors and contractors 0.606# 0.26# 0.1(65
1 R12.1 ,amage to -ork by third party 0.2# 0.# 0.1#6$
1$ R12.!
.ureaucratic project and go'ernment
appro'a& procedures 0.$ 0.$66# 0.1665
15 R12.12
,ifferences in practices bet-een &oca&
and foreign contractors 0.! 0.06# 0.16!
16 R12.2
/n'ironmenta& protection pressure of
other groups 0.25 0.56 0.15(2

1# R12.$
"oor re&ationship -ith go'ernment
bodies 0.2# 0..$( 0.1$52
1! R12.16 %ate pro'ision or de&i'ery of materia&s 0.2 0.$06# 0.1$52
1( R12.20
0orking conditions deferring from
contract specification 0.2 0.1 0.1112
20 R12.1(
%ack of e1perience in design and
construction 0.25 0.2( 0.10!6
:rom tab&e $+10 abo'e6 it can be deduced that =security threats from neighboring residents>
risk take up the first position -ith a risk+inde1 score 40.562156 to become the risk -ith the
highest risk score+inde1. 3his is an e1terna& risk and has both the highest mean of impact
degree 40.#65 and the highest mean of occurrence fre)uency 40.#5. It imp&ies that oi& and
projects in 7igeria are high&y prone to this major risk. It -as gathered from the conducted
inter'ie-s that the main causes of this risk -ere disturbances from the &oca& residents and
mi&itants in the 7iger ,e&ta region in the form of assau&t and kidnapping of oi& and gas
companies emp&oyees8 'anda&i*ing of oi& and gas pipe&ines8 and sabotage 4fire and
e1p&osion of oi& and gas faci&ities5. It -as a&so gathered that due to &ack of compensation
payment -hich -as supposed to be paid to the poor rura& d-e&&ers of these oi& rich regions
for the compu&sory ac)uisition of their &ands for oi& and gas e1p&oration8 a&-ays generates
crisis in the area. 4<gedengbe6 200#5
3he second to the fifth risks are as fo&&o-s9 =Incompetence of project team members> -ith a
risk+inde1 score 40.!258 =poor designs> -ith a risk+inde1 score 40.#558 =&ate interna&
appro'a&s from c&ients> -ith a risk+inde1 score 40.2(#$58 and =poor and inade)uate
tendering> -ith a risk+inde1 score 40.2!115. :rom the second do-n to the tenth 42nd to
10th5 ranking risks are a&& interna& risks.
0ithin this &imits -ere risks -hich a&so occupied high positions in the risk ranking and
-ere associated -ith the management acti'ities of the c&ient. 3hey are as fo&&o-s9
=Incompetence of project team members> as the 2
nd
8 =&ate interna& appro'a&s from c&ients> as
the $
th
8 =inade)uate project organi*ation structure> as the 6
th
8 =inade)uate budgeting and
poor project p&anning> as the !
th
and =improper project feasibi&ity studies> as the (
th
. 3he
fact that these management associated risks ha'e high ranking signifies that c&ients and
emp&oyers in 7igerian oi& and gas construction projects are fai&ing in their duties of
$
directing8 moti'ating emp&oyees8 organi*ing8 contro&&ing8 and p&anning oi& and gas projects.
:rom the inter'ie-s conducted6 it -as re'ea&ed that the reason for these &apses accrue to
&ack of a defined system in projects> structure and incompetent -orkers being used on
projects. 3hus6 it can be inferred that8 in order to manage these risks6 there shou&d be a
focus on impro'ing c&ients> management ski&&s6 abi&ities and kno-&edge as -e&& as
emp&oyees capabi&ities.
It is -orth noting that t-o risks -hich had high risk ranking8 and found their p&aces as the

rd
and #
th
in the top ten risk ranking -ere associated -ith the designs. 3hey are9 =poor
designs> -ith a risk+inde1 score 40.#558 and =changes in design> -ith a risk+inde1 score
40.2$5!5. ="oor designs> risk a&though occupied the o'era&& third position6 had the second
highest mean of impact degree 40.655. 3his is because design -orks -hich are done at
the ear&y stages of oi& and gas projects ha'e a 'ery huge impact on the tota& outcome of
projects. 2 &itt&e f&a- in a design can cause enormous changes in the construction phase and
in a&&ocating resources8 thus6 reducing )ua&ity and causing cost and time o'erruns on
projects. 43huyet6 et a&.6 200#5
=Changes in design> risk is common in oi& and gas projects and the ear&ier it occurs6 the
&esser it has impact on the tota& project outcome. It usua&&y occurs in the construction phase
of 7igerian oi& and gas projects. 3his risk had 0.$! as the mean of impact degree and this
imp&ies that changes in design in 7igerian oi& and gas projects ha'e a medium effect or
impact on the o'era&& project outcome. :rom the inter'ie-s6 it -as gathered that this risk is
usua&&y caused by changes in design specifications6 scope changes and poor )ua&ity designs.
3o curb these risks6 design standards are put in p&ace to enab&e regu&ators6 c&ients and
contractors to reach a mutua& understanding about the -ay to carry out designs. 4Sne&&6
200!5
="oor and inade)uate tendering> risk had the ranking position as 5th8 -ith a risk+inde1 score
40.2!1156 mean of impact degree 40.526#5 and mean of occurrence fre)uency 40.55. 3his
means that this risk has a se'ere impact on project outcomes. :rom the inter'ie-s6 it -as
re'ea&ed that risks associated -ith tendering in oi& and gas projects in 7igeria are attributed
to poor contractor se&ection by c&ients. Incompetent and unre&iab&e contractors end up
-inning bids due to inade)uacies in the e'a&uation processes and se&ection criteria -hich
5
&acked =due processes>. 3hus6 contractors are appointed by pub&ic and pri'ate sector c&ients>
not on merit but based on -hom they kno-. 4<gunsemi and 2je6 20065 3his makes
contactor and c&ient ethics during contractor se&ection and e'a&uation processes a comp&e1
and sensiti'e issue yet to be addressed in 7igerian oi& and gas projects.
3he 10th risk =inefficient and poor performance of constructors> -ith a risk+inde1 score
40.212558 mean of impact degree 40.$#58 and mean of occurrence fre)uency 40.$25. 3his
risk -as identified to be a 'ery sensiti'e risk that needs to be addressed in 7igerian oi& and
gas industry. C&ients> projects often end up suffering from o'erruns in cost6 de&ays in time6
poor )ua&ity ser'ices and decreased producti'ity due to poor performance on the contractor
side. In+depth inter'ie-s re'ea&ed that &ack of sufficient e)uipments and techno&ogy8
appropriate e1perience8 financia& capabi&ity8 trained emp&oyees8 a'ai&ab&e resources8 good
)ua&ity construction methods8 and efficient management ski&&s8 -ere the causes of
contractors poor performance on projects. .esides6 7igeria oi& and gas projects -hich are
usua&&y &arge and comp&e16 re)uiring huge capita& in'estment6 modern techno&ogies and
e'er changing up to date construction methods8 attracts mu&tinationa& companies.
Conse)uent&y6 conf&icts that impede project successes are often generated due to the
differences in techno&ogy kno- ho- bet-een the emp&oyees of mu&tinationa& and
indigenous companies.
4.! Risk response strategies for "itigating the "ajor risks
In the pre'ious section6 the top ten major risks in 7igerian oi& and gas projects -ere
identified -ith their fre)uency of occurrence and degree of impact. In &ine -ith the
objecti'es of the study and due to the time constraints and &imits of the research8 )ua&itati'e
method of research -as used 'ia te&ephone inter'ie-s -ith e1perienced personne& of the
7igerian oi& and gas industry8 to find out the characteristics and causes as -e&& as to
propose efficient strategies to effecti'e&y mitigate on&y the fi'e major risks on the risk
ranking de'e&oped from the )uantitati'e ana&ysis because of the se'ere impacts they ha'e
on oi& and gas projects in 7igeria. 3his section -i&& focus on ana&y*ing each indi'idua& risk
thorough&y.
4.!.1 #ecurity threats fro" neighboring residents $R1%.1!&
6
3he risks accruing to security threats from neighboring residents on 7igerian oi& and gas
projects are enormous. 3hese are e1terna& risks that inhibit the achie'ement of a project>s
cost6 time and )ua&ity objecti'es. It -as gathered from the conducted inter'ie-s that the
agitating youths and mi&itants acti'ities on oi& and gas fie&ds in the form of assau&t and
kidnapping of oi& and gas companies emp&oyees 4/-eje6 200#58 'anda&i*ing of oi& and gas
pipe&ines8 and sabotage 4fire and e1p&osion of oi& and gas faci&ities5. It -as a&so gathered
that due to &ack of compensation payment -hich -as supposed to be paid to the poor rura&
d-e&&ers of these oi& rich regions for the compu&sory ac)uisition of their &ands for oi& and
gas e1p&oration8 a&-ays generates crisis in the area. 4<gedengbe6 200#5
In this &ight6 the respondents to the inter'ie- that -ere carried out proposed se'era&
strategies -hich inc&ude9
1. 3he compu&sory &and use act shou&d be amended so that ade)uate compensation fees
shou&d be paid to the o-ners of the ac)uired &ands by oi& and gas companies or the
federa& go'ernment.
2. Corporate socia& responsibi&ity 4CSR5 4/'u&eocha6 20055 shou&d be enforced by the
federa& go'ernment so as to increase the de'e&opment of these oi& rich communities
by oi& and gas companies.
. 3he federa& go'ernment of 7igeria shou&d seek to enforce stringent &a-s on -aste
disposa&s so as to stop the oi& spi&&ages from acti'ities from oi& and gas construction
acti'ities. 4/ssoka6 et a&.6 20065
$. 3he %7? production shou&d be introduced fu&&y so as stop the f&aring of gases
-hich cause harm to human6 anima&s and the entire eco&ogica& en'ironment in the
7iger ,e&ta region. 4?a&braith6 200!5
4.!.% 'nco"petence of project tea" "e"bers $R1%.!&
:rom the phone inter'ie-s6 it -as gathered that the 7igerian oi& and gas projects &ack
indi'idua&s -ith ski&&s6 kno-&edge and abi&ity to perform their duties efficient&y. /'en
though most project team members possessed at &east one form of higher education degree6
there is sti&& that &ack of insufficient ski&&s needed to manage oi& and gas projects.
In this 'ie-6 the fo&&o-ing strategies -ere proposed by the inter'ie-ees as fo&&o-s9
#
1. /ffecti'e team-ork shou&d be enhanced 'ia staff training to update them -ith the
ne- techno&ogies and industry ski&&s.
2. ?ood staffing by effecti'e&y matching project team members to the right projects
-here they can function efficient&y to achie'e optimum producti'ity.
4.!.3 (oor designs $1%.)&
3he risks of poor designs by contractors in 7igerian oi& and gas projects are enormous6 and
usua&&y cause the non+achie'ement of projects> cost6 time and )ua&ity objecti'es. 0ho
absorbs the e1tra cost of incomp&ete or unc&ear scopes and specifications6 ambiguous design
and designers> incompetence@ 3his )uestion usua&&y causes a &ot of conf&ict bet-een c&ients
and contractors. In 7igeria6 indigenous companies ha'e &itt&e e1perience in design of oi&
and gas faci&ities6 thus there e1ists a dominance of foreign mu&tinationa& companies that
ha'e more e1perience but sti&& run into design difficu&ties due to the comp&e1 nature of the
designs in the industry.
In this &ight6 the respondents to the inter'ie- that -ere carried out proposed se'era&
strategies -hich inc&ude 43huyet6 200#59
1. Indigenous companies partnering -ith the mu&tinationa&s to impro'e cost
effecti'eness8 efficiency8 )ua&ity of products and ser'ices8 transparency and transfer
of techno&ogy6 &ong term commitment and enhanced opportunity for inno'ation.
2. Contractor se&ection to be based on e1perience and pre'ious performance so that
competent and e1perienced manpo-er -i&& be carrying out design -orks efficient&y.
. Asing concurrent engineering to impro'e constructabi&ity and time sa'ings.
$. ,esign standards put in p&ace to enab&e regu&ators6 c&ients and contractors to ha'e a
mutua& understanding about the -ay to carry out designs. 4Sne&&6 200!5
4.!.4 *ate internal appro+als fro" clients $1%.,&
3his is an interna& project risk that usua&&y originates in c&ients organi*ation. 3he inter'ie-
respondents re'ea&ed that this risk emanates on 7igerian oi& and gas projects due to
managers &acking the authority to so&'e prob&ems and &ack of emp&oyee commitment.
"roject managers are usua&&y faced -ith the prob&em of s&o- responses from the top
!
management to pressing project issues e.g. a&&ocating resources. 3his &eads to time and at
times &ead to cost o'erruns on projects. 43huyet6 200!5
In this &ight6 the respondents to the inter'ie- that -ere carried out proposed the fo&&o-ing
strategies9
1. Asing 3B; 43ota& Bua&ity ;anagement5 practices for enhancing the in'o&'ement
of a&& project emp&oyees to share in the project 'ision and goa&s.
2. /mpo-ering project managers -ith appro'a&s authority so as to make on time and
faster decisions -hich enhances inno'ation and successfu& de&i'ery of projects.
4.!.! (oor and inade-uate tendering $1%.9&
3he risk accruing to poor and inade)uate tendering usua&&y6 can de'iate a project from
meeting up -ith its objecti'es. <i& and gas projects usua&&y adopt one of the fo&&o-ing
methods8 restricted tendering6 open tendering6 restricted acce&erated6 competiti'e
negotiated6 competiti'e negotiated acce&erated tendering and dia&ogues. 4"a&anees-aran and
kumaras-amy6 20015 3he inter'ie-s re'ea&ed that &ack of =due processes> 4unethica&
attitudes of bidders5 and =inade)uate e'a&uation criteria> are the main sources that pose
tendering risks in 7igerian oi& and gas industry. "ub&ic sector c&ients often accept &o-est
price tender so as to sho- accountabi&ity and in defense for criticisms. 40ong6 et a&.6 20005
;oreo'er6 these bidders submit &o- prices to -in and after -inning6 they negotiate -ith
c&ients at &ater stages to mark+up their tender. 2nother identified source is the co&&usion of
bidders &ike -ithdra-a&6 bribery6 and fa&se inf&ation of co'ering and tender prices.
In this &ight6 the respondents to the inter'ie- that -ere carried out proposed the fo&&o-ing
strategies9
1. 3he techni)ue6 ;C,; 4;u&tip&e criteria decision making5 shou&d be used for
e'a&uating contractors.
2. C&ients increasing &ega& enforcement of co&&usion by impro'ing the detection of
bidders during pre)ua&ification and fina& stages of e'a&uation.
. C&ients using se&ecti'e tendering by in'iting on&y credib&e and professiona&
contractors
(
4.) #u""ary
3he )uantitati'e and )ua&itati'e approaches -ere used to assess the major risks that
emanate in 7igerian oi& and gas construction projects. 3he findings from resu&ts from the
background information of the )uestionnaire sur'ey re'ea&s that risk management practices
in 7igeria oi& and gas industry in'o&'es peop&e -ith high industry e1perience8 educated8
and most&y carry out projects in both upstream and do-nstream sector. ;ost of the
organi*ations ha'e e1perience in oi& and gas acti'ities because they ha'e been in e1istence
&ong enough in the industry8 -ith ade)uate staff strength.
3he second part the )uestionnaire re'ea&ed that a&& organi*ations in 7igerian oi& and gas
industry maintain a risk management system as -e&& as store identified risks in a risk
management database either as hard copies or e&ectronic copies in computer hard dri'es6
compact discs and f&oppy dri'es.
3he top ten major risks that emanate on oi& and gas construction projects both in the
upstream and do-nstream oi& and gas sectors are9
5.2 Security threats from neighboring residents
6.2 Incompetence of project team members
#.2 "oor designs
!.2 %ate interna& appro'a&s from c&ients
(.2 "oor and inade)uate tendering
10.2 Inade)uate project organi*ation structure
11.2 Changes in design
12.2 Inade)uate budgeting and poor project p&anning
1.2 Improper project feasibi&ity studies
1$.2 Inefficient and poor performance of constructors
Bua&itati'e method -as used 'ia in+depth te&ephone inter'ie-s8 to further ana&y*e the top
fi'e major risks due to their high mean of impact degree and high risk inde1 score
thorough&y. 3he causes and characteristics of the top fi'e major risks8 as -e&& as mitigating
strategies -ere de'e&oped to curb the top fi'e major risks that emanate on 7igerian oi& and
gas projects.
10
.hapter !: .onclusion and reco""endations
%.1 .onclusion:
In recent times6 the concept of risk management is an essentia& process that cannot be
neg&ected in the management of projects in de'e&oped countries. 7e'erthe&ess6 the practice
is sti&& ne- during the imp&ementation of projects in de'e&oping countries8 -hich inc&udes
7igeria. <n&y the 7igerian oi& and gas sector seems to be the sector amongst others8 that is
keen on uti&i*ing risk management practices during the imp&ementation of projects because
of the 'o&ati&e nature of products and characteristics of the project en'ironment -here the
operation and processes are carried out6 in a constant&y changing dynamic en'ironment
-hich is e1posed to enormous risks. 3hus6 this research is 'ery significant and time&y
considering the fact that the oi& and gas sector is the most important contributor to the tota&
re'enue of the 7igerian economy.
3he research dissertation -hich aimed at identifying the risk factors that affect oi& and gas
construction projects and to deri'e risk responses for them -as accomp&ished 'ia rea&i*ing
the fo&&o-ing research objecti'es9
3he different types of risks as -e&& as the different en'ironments -here these risks originate
in oi& and gas projects -here identified from an e1tensi'e &iterature re'ie-. 2 c&oser
assessment 'ia a )uestionnaire sur'ey -as systematica&&y used to determine the fre)uency
11
of occurrence and the degree of impact of the major sources of risks that emanate in oi& and
gas construction projects in 7igeria.
3he resu&ts of the research 'ia the risk scores of the major risks re'ea&ed that the top ten
major risks in oi& and gas construction projects in 7igeria -ere9

1. Security threats from neighboring residents
2. Incompetence of project team members
. "oor designs
$. %ate interna& appro'a&s from c&ients
5. "oor and inade)uate tendering
6. Inade)uate project organi*ation structure
#. Changes in design
!. Inade)uate budgeting and poor project p&anning
(. Improper project feasibi&ity studies
10. Inefficient and poor performance of constructors
!.% Reco""endations
:or the successfu& de&i'ery of projects6 it is essentia& that a thorough e1amination of the
major risks affecting a project is e1amined. In the )uest to de'e&op strategies to effecti'e&y
mitigate the identified major risks8 &iterature and in+depth inter'ie-s -ere carried out in the
research and -ere used to proffer appropriate practica& strategies -hich -here proposed for
the top fi'e most ranked6 major risks in oi& and gas construction projects in 7igeria. 3he
research proposed recommendations to effecti'e&y mitigate the top+fi'e major risks as
fo&&o-s9
1. 3he compu&sory &and use act shou&d be amended so that ade)uate compensation fees
shou&d be paid to the o-ners of the ac)uired &ands by oi& and gas companies or the
federa& go'ernment.
2. Corporate socia& responsibi&ity 4CSR5 shou&d be enforced by the federa& go'ernment
so as to increase the de'e&opment of these oi& rich communities by oi& and gas
companies.
12
. 3he federa& go'ernment of 7igeria shou&d seek to enforce stringent &a-s on -aste
disposa&s so as to stop the oi& spi&&ages from acti'ities from oi& and gas construction
acti'ities.
$. 3he %7? production shou&d be introduced fu&&y so as stop the f&aring of gases
-hich cause harm to human6 anima&s and the entire eco&ogica& en'ironment in the
7iger ,e&ta region.
5. /ffecti'e team-ork shou&d be enhanced 'ia staff training to update them -ith the
ne- techno&ogies and industry ski&&s.
6. ?ood staffing by effecti'e&y matching project team members to the right projects
-here they can function efficient&y to achie'e optimum producti'ity.
#. Indigenous companies partnering -ith the mu&tinationa&s to impro'e cost
effecti'eness8 efficiency8 )ua&ity of products and ser'ices8 transparency and transfer
of techno&ogy6 &ong term commitment and enhanced opportunity for inno'ation.
!. Contractor se&ection to be based on e1perience and pre'ious performance so that
competent and e1perienced manpo-er -i&& be carrying out design -orks efficient&y.
(. Asing concurrent engineering to impro'e constructabi&ity and time sa'ings.
10. ,esign standards put in p&ace to enab&e regu&ators6 c&ients and contractors to ha'e a
mutua& understanding about the -ay to carry out designs.
11. Asing 3B; 43ota& Bua&ity ;anagement5 practices for enhancing the in'o&'ement
of a&& project emp&oyees to share in the project 'ision and goa&s.
12. /mpo-ering project managers -ith appro'a&s authority so as to make on time and
faster decisions -hich enhances inno'ation and successfu& de&i'ery of projects.
1. 3he techni)ue6 ;C,; 4;u&tip&e criteria decision making5 shou&d be fre)uent&y
used for e'a&uating contractors.
1$. C&ients increasing &ega& enforcement of co&&usion by impro'ing the detection of
bidders during pre)ua&ification and fina& stages of e'a&uation.
15. C&ients shou&d be using se&ecti'e tendering by in'iting on&y credib&e and
professiona& contractors
!.3 *i"itations of research
0ith regards to the gap in distance bet-een the author and the target popu&ation8 and the
inf&e1ib&e time schedu&e re)uired for comp&eting the research6 the choice of te&ephone
1
inter'ie-s and the use of an e&ectronic )uestionnaire -as the most suitab&e media for data
co&&ection for the research. Co-e'er6 it -as recogni*ed that the representation of the entire
target popu&ation may not be repudiated from the respondents 'ie-s because8 not a&& the
operators in the upstream and do-nstream sector of the 7igerian oi& and gas industry may
ha'e access to internet to faci&itate the data co&&ection process. 7e'erthe&ess6 the samp&e
sti&& continues to be a 'a&id and dependab&e information source since most of the corporate6
pub&ic and pri'ate sector oi& and gas organi*ations in 7igeria ha'e internet access.
!.4 Reco""endations for future research
Ca'ing undertaken the research on risk management in oi& and gas construction projects in
7igeria8 opportunities are open for future research to be aimed at using the ascertained
major sources of risks and recommended strategies proposed in the research dissertation8
for de'e&oping a practica& risk management mode& for future use by c&ients6 in'estors6
researchers and a&& stakeho&ders that ha'e interest in the 7igerian oi& and gas industry.
1$
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Sne&&6 R. 4200!56 <ffshore Structures + Standardi*ation6 )ffshore Technology International,
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$2.
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International conference in the Built +n,ironment in the 81st Century 9ICIB+ 8::;<, eds.
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Construction "rojects in Dietnam6 International Journal of +nergy Sector 'anagement,
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7e- Gork.
0ong6 C.C.6 Co&t6 ?.,. and Cooper6 ".2. 4200056 %o-est price or 'a&ue@ In'estigation of
AF construction c&ients> tender se&ection process6 Construction 'anagement and
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0or&d .ank 41((#56 Borld 3e,elo*ment e*ort, 0or&d .ank6 0ashington6 ,C
Jafra+Cabe*a6 2.J.6 Ridao6 ;.2.6 Camacho6 /.:.6 4200!56 Asing a risk+based approach to
project schedu&ing9 2 case i&&ustration from semiconductor manufacturing6 +uro*ean
Journal of )*erational esearch, 1(06 pp. #0!+#2.
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