An Exploratory Analysis of Barriers to Marginal Oil Field Development in Niger Delta Region
[1]
Oruwari Humphrey Otombosoba, Institute of Innovation, Technology and Engineering Management, University of Port Harcourt, Port Harcourt, Nigeria.
The factors which are thought generally to have precipitated the problem of marginal oil field operations in Niger Delta region are identified and discussed with particular reference to their relationship with the Nigerian economy. Despite policy initiative and considerable potential of marginal oil fields in Nigeria, the development of marginal field has not been fully successful. It is against this background that this research was undertaken to assess the barriers to marginal oil field development in Niger Delta region of Nigeria. An extensive literature review and survey on marginal field operators were carried out. The study employed a descriptive survey research design. Questionnaires were used as instrument of data collection. The research instruments were validated and tested for reliability prior to field administration. Data was analyzed both quantitatively and qualitatively. Analytical tool was the statistical tool of chi-square (x2) techniques. The chi-square was used to measure the relationships that exist between the dependent variables and the independent variables. Using data obtained from survey of marginal field operators, International Oil Companies and government agencies, it was found that insecurity, inadequate infrastructure high interest rate, inadequate regulatory frame work and multiple taxations are key factors that precipitated the challenges of the operations of marginal fields in Niger Delta. The solution therefore lies in addressing these burning issues. The significance of the study is as follows: It serves as a useful guide for investors wishing to participate in the sustainable development of marginal oil fields; it provides new information towards policies that promotes sustainable development of oil and gas resources. The study should add to the existing body of knowledge in oil and gas. The overall significance of the study is to contribute to knowledge on the management of hydrocarbon resource for economic sustainability in Nigeria.
Marginal Oil Fields, Niger Delta Region, Infrastructure, Multiple Taxation
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