An Evaluation Of The Effects of Efficient Risk Management in the Downstream Oil and Gas Sector (A Case Study of Selected Filling Stations in Gusau Metropolis)

ABSTRACT

This study was carried out to investigate the effects of efficient risk management in the downstream oil and gas sectors. To achieve this objective, the researcher developed and administered a questionnaire on fifty five staffs of A.A. Rano Nigeria Limited and Total Nigeria Plc in Gusau. The likert scale statistical and graphical method was used in testing the null hypothesis. From the study, it was observed that these filing station have a technique for risk identification and evaluation. It was also observed that these filing station have standard guidelines on procedures of managing risk. It was discovered that these filling station have control measures in implementing risk management process. It was also discovered that these filling station inculcate employees contribution into the implementation of risk management. It was observed that these filling station have a risk management and control department. It was also observed that risk can be mitigated to the bearest minimum. It was observed also that the management of these filling station is still face with operational risk such as fire outbreak and breakdown of equipment. Fire outbreak has been a serious phenomenon at these filling station which results in lost of lives and properties despite the high safety standards. It was also discovered that employees are satisfied with the way management is handling their health and safety needs. It was concluded that no particular techniques can effectively manage all risks, since risks are of varying dimensions. While those risks within these filling station are minimized using the Health, Safety and Environment (H.S.E) programme. However, the major technique used for risk in the oil and gas downstream sector is the process of transferring such risks to a third party through the purchase of an insurance policy since insurance is the best risk management tool with best cost – benefit. The researcher recommended that management of these filling station to formulate and incorporate risk management policies in their strategic plan. These filling station should provide more training in risk management to employees and develop more standard guidelines and controls in implementing and managing risks as well as regular review of such policies. Management should also be committed to enforcing risk management policies. A well defined reporting guidelines should be in place and punitive action should be fairly enforced on workers who flout risk and safety rules.