The Mitigating Effect of Supply Chain Risk Management in Marginal Field Oil and Gas Companies in Nigeria

Abstract

Historically, oil and gas was discovered in Nigeria in 1956 by Shell petroleum at Oloibiri now Bayelsa state. The oil and gas industry is divided into upstream, downstream and mid-stream respectively in Nigeria. Each of the petroleum sectors performs different functions in terms of exploration, refining and distributions and with respective supply chains. In course of the supply chain distribution, distractions in form of turbulence and disruption can occur which could have serious effects on operations and performance. Hence this study focused on the mitigating effect of supply chain risk management in marginal field oil and gas companies in Nigeria. It is field survey and case type of research. A total of 687 Management and Senior staff of nine marginal filed oil and gas companies constituted that population while 325 formed that sample size. The main instrument was questionnaire administration and analysed using descriptive statistics. The study found that application and proper management of supply, demand, information, transportation and monitoring risk mitigation strategies are critical factors enhancing reduction of risks in marginal field oil and gas in Nigeria. It therefore recommended that there should proper coordination of information, monitoring, demand and supply chain risk management in order to reduce vulnerability of disruptions and distraction in operations.