Development of a strategic and operational process business performance improvement model for indigenous companies in the Nigerian oil and gas service sector

  • Suzzy Oroma Nsiegbe

    Student thesis: Doctoral ThesisDoctor of Philosophy

    Abstract

    The petroleum industry is a vast industry and contributes significantly to the global economy and alsoto developed and developing oil producing economies. The importance of the oil industry cannot beover-exaggerated as it is a vital part of both national and global needs. However, this industry is saidto be a curse to some economies, particularly, developing oil producing economies. In recent times,due to the over-reliance of the Nigerian national economy on oil extraction and commodityproduction, the Nigerian government is seeking to achieve a self-reliant and balanced productiveeconomy and also to have a diversified economy. In order to reduce some of the challenges and toharness a more productive economy, the Nigerian government, via its Local Content Act, hasleveraged participation of its indigenous operators/companies to partake in the country’s oil and gasindustry. The problem is, however, that there is rather limited progress to date. This research work investigate the problem by focusing on two service sectors, the indigenous oil andgas sector, and the marine and vessel supply service sector both within the Nigerian oil and gasindustry. It addresses the specific need as to how the business performance of these servicecompanies can be improved such that the resultant business growth provides the potential for furthereconomic development and diversification. An adoption of both qualitative and quantitative data was employed. Primary data was collected viainterviews from 30 indigenous companies with senior executives, CEOs, heads of department, andmanagers in the business and the marine vessel supply service sectors in the oil and gas industry. 60questionnaires were distributed to senior employees and 25 fully completed. A comparative secondary data country case-study was adopted to analyse the trends, impact, andeconomic contribution by a country’s oil and gas service industry to its national economy in thedeveloped oil producing economies of Australia, Canada, and Norway. The analysed data indicatedthat, for Nigeria, there are significant challenges mitigating against prolific business performanceimprovement at the company level, as well as underlying challenges at the industry level. These havenegatively affected Nigeria’s oil and gas service sector in terms of moving towards being globallycompetitive, whilst the reverse is true for Australia, Canada. The research further identified theimpressive progress made by Norway’s service sector, and its contribution to the country’s economy ratified by senior executives in the service sector. They confirmed that the model has credibility, isacceptable, that it can help deliver business performance improvement, and that it has practical value.is an example to Nigeria of what can be achieved.The analysis of the primary and secondary data led to two types of framework being developed; awide ranging business performance improvement framework, and four work stream-focussedimprovement frameworks. It is anticipated that these will help facilitate business performanceimprovement and resultant economic growth and development in the indigenous service industry partof the oil and gas sector in Nigeria, thereby providing the potential to help enable subsequent longterm support for economic diversification at company and sector level. A self-assessment actionmanual was also developed to facilitate practical application of the BPI framework which had been
    Date of Award2021
    Original languageEnglish
    Awarding Institution
    • Coventry University
    SupervisorRichard Anderson (Supervisor)

    Keywords

    • sustainability
    • operational research
    • strategic approach
    • Sustainable Development
    • indigenous

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