Organizational Factors Influencing Management of Project Complexities in Upstream Oil and Gas Operations in Nigeria: An Exploratory Study

Abstract

This study examined and investigated the organizational factors influencing management of project complexities in the Upstream Oil and Gas Operations (UOGO). The aim is to have a better understanding of the problems and explore effective techniques for achieving success. Oil and gas industry is usually characterized by project complexities in its operation, facilities and infrastructure development. Descriptive and quantitative survey research design with purposive sampling technique were employed on a sample of 6 selected major upstream companies and 64 target respondents who are experienced professionals in the field. The instrument of primary data collection and measurement was well-structured and standardized questionnaire modeled in Likert five-point scale. The methods of data analysis were Relative Importance and Severity Indexes (RII and RSI). In addition, multiple regression and correlation analysis were used for hypothesis testing and in establishing the integrated relationship between organizational factors and successful management of project complexities in UOGO. The RII results and findings indicate that uncertainty is the most important factor affecting project complexities. The RSI results and findings infer that the severest type, causes and incremental factor of project complexities are technical/ technological, interrelationship/interconnections and environment respectively. The results and findings from hypothesis testing show that the variables that most influence successful management of project complexities in UOGO are Information and Communication Technology (ICT) knowledge, training, resource allocation and top management support; in ranking significant order. The study suggests that more attention should be focused on modern ICT knowledge acquisition and training while top management support is essential for adequate resources allocation and good decision-making structure.