ABSTRACT
Risk management is a discipline that assists people and organizations in dealing with uncertainty by attempting to protect their most valuable assets and resources. It entails avoiding, eliminating, transferring, reducing, or controlling risks in projects, programs, and portfolios. This research was carried out to examine risk management practices adopted for capital projects in the oil and gas industry with a view to promoting best practices within the oil and gas industry. The objectives of the study identified the risks associated with capital projects, and examined the risk management practices adopted for capital projects, and examine the barriers to the implementation of effective risk management practices in the oil and gas industry. A total of 65 responses were retrieved out of 95 questionnaires administered. Data was collected using structured questionnaire where 68% response rate was recorded. The data collected were then analyzed based on the research objectives. Results and findings showed risk severity corresponds to what was observed at NPDC. It was also found that health, safety and security is most common risk management practice in the oil and gas industry of Nigeria. Furthermore, the study found that limited resources, high cost of risk management, and poor management were regarded as barriers to the implementation of effective risk management in the oil and gas industry. Based on these findings, the study concluded that practices involving health, safety and security will be most effective in managing risks in the oil and gas industry. The study therefore recommends that Personal Protective Equipment (PPE) should be provided, and security systems should be installed such as fire alarms, smoke detecting devices, and shut down system.
Keywords: Oil and gas industry, risk, Risk Management Practices (RMP), capital project, Nigerian Petroleum Development Company (NPDC).
