Risk assessment and allocation in Nigerian oil and gas projects

The Nigerian oil and gas industry is very active. New mega projects are coming on stream such as the exploration and production from the deep offshore as well as the construction of a Liquefied natural gas plant to increase gas utilisation. Various contractual arrangements are in place to woo local and foreign investors for exploration and development projects. However, the number, size and complexity of these projects are increasing resulting in achieving extra operational excellence and also placing more emphasis on the assessment and management of the associated risks. Therefore, the research work that underpins this paper was carried out to identify and assess significant risks in the Nigeria Oil and gas projects and addresses their proper allocation. Data were collected through a questionnaire distributed to a group of experts in the local and international oil company operating in Nigeria. It has been revealed that environmental and Political risks such as Force Majeure due to militants attack, gas flaring, gas leakage and oil spillage risks are significant. Other significant risks include financial and technological risks. These risks are largely shared between companies and the government representative.