CHALLENGES OF OPERATIONAL EFFICIENCY FACED BY SELECTED OIL AND GAS EXPLORATION ORGANIZATIONS IN KENYA

Authors

  • James Okal Mobutu Jomo Kenyatta University of Agriculture and Technology
  • Dr Joyce Nzulwa Jomo Kenyatta University of Agriculture and Technology

Keywords:

challenges, oil and gas exploration organizations, operational efficiency, oil and gas exploration

Abstract

Purpose: the purpose of the study is to assess the challenges of operational efficiency faced by selected oil and gas exploration organizations in Kenya.

Methodology: This study applied descriptive research design and employ exploratory research to explore the variables. The population of interest in this study comprised of 37 selected entities involved in exploration. The study adopted a structured questionnaire. The study data was also analyzed using descriptive statistics and presented in tables and charts. Frequencies and percentages was used to explain data sets and results. Inferential statistics were drawn based on findings of the descriptive statistics.

Findings: Results indicate that operational efficiency would rise by 0.116 with every unit positive increase in community issues provided that other factors (infrastructure issues, local content, and security) are constant, and the statistic is insignificant at 95% confidence level (p=0.130). The application of infrastructure issues would lead to an increase in operational efficiency by factor of 0.049 at p= 0.620 should other factors be held constant. Holding other factors (community issues, infrastructure issues and security) constant, a unit increase in local content would lead to a 0.856 increase in operational efficiency (p<0.001). Lastly, a unit increase in security would lead to a 0.132 increase in operational efficiency these statistics being significant (p<0.01) at 95% of significance.

Unique Contribution to Theory Practice and Policy: Operational management acts are measured by an organization efficiency performance metrics. Given that operations management is evolving into a service activity, operational managers need to visit research papers to ascertain what are the contributors to their performance metrics. This study has attempted to demystify the notion that all the independent variables have equal probability of affecting operational efficiency and instead has instead discovered that there exists a positive correlation and each independent variable has a hierarchical contribution towards the score of an operational efficiency performance metric.

Downloads

Download data is not yet available.

Author Biographies

James Okal Mobutu, Jomo Kenyatta University of Agriculture and Technology

Post Graduate Student:

Dr Joyce Nzulwa, Jomo Kenyatta University of Agriculture and Technology

Lecturer, Department of Business Administration

References

Kamara, A. B., Anyanwu, J. C., Juel, M., Mondlane, S., & Iwayemi, A. (2009). Oil and Gas In Africa. African Development Bank and the African Union. New York: Oxford University Press Inc.

Omontuenmhem, p., Bredenhann, C., & Bedwei, A. (2016). The Choice to Change: Africa Oil and Gas Review. South Africa: PricewaterhouseCoopers.

Goldratt, E., & Cox, J. (2004). The goal (Vol. 3 Rev. Ed.). Great Barrington, MA: North River Press.

William, J. S. (2012). Operations Management (Vol. 7th Ed.). New York: McGraw-Hill.

Mahesh, C. G., & Lynn, H. B. (2008). "Theory of Constraints: A theory for operations management". International Journal of Operations & Production Management, 28(10), 991-1012.

Aniefiok, E. I., Udo, J. I., Margaret, U. I., & Sunday, W. P. (2013, September 4). Petroleum Exploration and Production: Past and Present Environmental Issues in Nigeria's Niger Delta. American Journal of Environmental Protection, 1(4), 78-90.

Devold Havard. (2013). Oil and gas production handbook: An introduction to oil and gas production, transport, refining and petrochemical, industry. ABB Oil and Gas. Oslo: ABB AS. Retrieved 2 20, 2018, from HTTP://www04.abb.com/global/setup/seitp202.nsf/0/f8414ee6c6813f5548257c14001f11f2/$file/Oil+and+gas+production+handbook.pdf

Aghalino, S., & Eyinla, B. (2009). Oil Exploitation and Marine Pollution: Evidence from the Niger Delta, Nigeria. Journal of Human Ecology, 28(3), 177-182.

Collier, P., & Ireland, G. (2015). Shared-use mining infrastructure: Why it matters, and how to achieve it (BSG-WP-2015/009). Oxford, UK: Univerity of Oxford.

Neingo, P., & Cawood, F. (2014). Correlation of productivity trends with market factors at three selected platinum mines. The 6th International Platinum Conference, 'Platinum - Metal for the Future', (pp. 181-188). The Southern African Institute of Mining and Metallurgy.

Janis, A. S., Marcello, M. V., Jean, S., Malcolm, S., & Mieke, K. (2011, June). Perspectives on Community Health Issues and the Mining Boom-Burst Cycle. Resource Policy, 36(2), 178-186.

Mugenda, O., & Mugenda, A. (2008). Research Methods: Quantitative and Qualitative Approaches. Nairobi, Kenya: African Centre of Technology Studies.

Cresswell, J. W. (2009). Research Design: Quantitative, Qualitative and Mixed Method Approaches (3 ed.). (V. Knight, Ed.) Thousand Oaks, California, USA: Sage Publications Inc.

Kothari, C. R. (2004). Research Methodology: Methods and Techniques. New Delhi, India: New Age International Publishers.

Davis, R., & Daniel, M. F. (2014). Costs of Company-Community Conflict in the: Corporate Social Responsibility Initiative Report No. 66. The University of Queensland in Australia. Cambridge, MA: Harvard Kennedy School.

Goldratt, E., & Cox, J. (2004). The goal (Vol. 3 Rev. Ed.). Great Barrington, MA: North River Press.

Mackenzie, B., & Cusworth, N. (2016). The Use and Abuse of Feasibility Studies - Has anything changed? Project Evaluation Conference: Good Practice and Communication (pp. 133-148). Melbourne: Australasian Institute of Mining and Metallurgy (AusIMM ).

Huq, F. A., Stevenson, M., & Zorzini, M. (2014). Social sustainability in developing country suppliers: An exploratory study in the ready-made garments industry of Bangladesh. International Journal of Operations & Production Management, 34(5), 610-638.

Walker, P. H., Seuring, P. S., Sarkis, P. J., & Klassen, P. R. (2014). Sustainable Operations Management: Recent Trends and Future Directions. International Journal of Operations & Production Management, 34(5).

Blome, C., Paulraj, A., & Kai, S. (2014). Supply chain collaboration and sustainability: a profile deviation analysis. International Journal of Operations & Production Management, 34(5), 639-663. Retrieved from https://doi.org/10.1108/IJOPM-11-2012-0515

Idemudia, U. (2009, September). Assessing corporate-community involvement strategies in the Nigerian oil industry: An empirical analysis. Resource Policy, 34(3), 133-141.

Porter, M. E., & Kramer, M. R. (2011, Jan-Feb). The Big Idea: Creating Shared Value: How to Re-invent Capitalism and Unleash a Wave of Innovation and Growth. Havard Business Review(R1101C), 1-17.

Davis, R., & Franks, D. M. (October 2011). The Cost of Conflicts With Local Communities in The Extractive Industries. SR Mining 2011: First International Mining Seminar on Social Responsibility in Mining (pp. Chapter 6 pages 1-13). Santiago: CommDev.

Davis, R., & Franks, D. M. (October 2011). The Cost of Conflicts With Local Communities in The Extractive Industries. SR Mining 2011: First International Mining Seminar on Social Responsibility in Mining (pp. Chapter 6 pages 1-13). Santiago: CommDev.

Gunasekarana, A., & Ngai, E. W. (2012, February). The future of operations management: An outlook and analysis. International Journal of Production Economics, 135(2).

Saheed, Z. S., & Egwaikhide, C. I. (2012, June). Impact of Social Crises on Economic Development: Theoretical Evidence from Nigeria. American International Journal of Contemporary Research, 2(6), 176-184.

Saheed, Z. S., & Egwaikhide, C. I. (2012, June). Impact of Social Crises on Economic Development: Theoretical Evidence from Nigeria. American International Journal of Contemporary Research, 2(6), 176-184.

Lutz, K., & Hicks, B. (2013, August). Did Unexpectedly Strong Economic Growth Cause the Oil Price Shock of 2003-2008? Journal of Forecasting, 32(5), 385-394.

McKenzie, F. H. (2013, August). Delivering Enduring Benefits from a Gas Development: governance and planning challenges in remote Western Australia. Australian Geographer, 44(3), 341-358.

Ihucha, A. (2014, January 4). UK's Afren in $200 Million Exploration Deal In Dar. The East African. Nairobi: Nation Media Group Print. Retrieved January 5, 2018

Brenda L., P. (2015, October). Avoiding the Resource Curse: Indigenous Communities and Canada's Oil Sands. World Development, 74, 425-436.

Al-Maamary, H. M., Kazem, H. A., & Miqdam, T. C. (2016, November). The impact of oil price fluctuations on common renewable energies in GCC countries. (L. Kazmerski, Ed.) Renewable & Sustainable Energy Reviews, 75, 989-1007. Retrieved from https://doi.org/10.1016/j.rser.2016.11.079

Roshni, A., Siti-Nabihaa, A., Dayana, J., & Yousif, A. (2016, 11 10). Barriers to and enablers of sustainability integration in the performance management systems of an oil and gas company. Journal of Cleaner Production, 136(Part A), 197-212.

Roshni, A., Siti-Nabihaa, A., Dayana, J., & Yousif, A. (2016, 11 10). Barriers to and enablers of sustainability integration in the performance management systems of an oil and gas company. Journal of Cleaner Production, 136(Part A), 197-212.

Nenibarini, Z., & Gustaf, O. (2017, August). Conflicts - Oil Exploration and Water. Global Challenges, 1(5).

Cristina Udelsmann, R. (2017, November). Configuring the living environment in mining areas in Angola: Contestations between mining companies, workers, local communities and the state. The Extractive Industries and Society, 4(4), 727-734.

Emah, P. E., Mehraz, B., & Mridula, G. (2017, December). Third Party Logistics Outsourcing: An Exploratory Study of the Oil and Gas Industry in Nigeria. SAGE Open, 7(4).

Ogwang, T., Vanclay, F., & Arjan van, d. A. (2018, January). Impacts of the oil boom on the lives of people living in the Albertine Graben region of Uganda. (G. Hilson, Ed.) The Extractive Industries and Society.

David Saxowsky. (2010, 08 10). The process of Oil and Gas Exploration and Production. Fargo, North Dakota, USA: Department of Agribusiness and Applied Economics, North Dakota State University. Retrieved from North Dakota State University website.

Downloads

Published

2021-08-18

How to Cite

Mobutu, J. O. ., & Nzulwa, D. J. . (2021). CHALLENGES OF OPERATIONAL EFFICIENCY FACED BY SELECTED OIL AND GAS EXPLORATION ORGANIZATIONS IN KENYA. International Journal of Strategic Management, 1(1), 37–58. Retrieved from https://iprjb.org/journals/index.php/IJSM/article/view/1343

Issue

Section

Articles