Assignment on Supply Chain Management in Nigeria

Running head: AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA
DOWNSTREAM OIL AND GAS INDUSTRY
An analysis of supply chain activities in Nigeria Downstream Oil and Gas Industry
Name of the Student:
Name of the University:

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
Abstract
The oil and gas industry is being concerned of global supply chain which consists of domestic as
well as worldwide transportation in addition to inventory visibility, handling of raw materials,
and import in addition to export facilitation along with the information technology. This selected
industry offers of supply chain model to implement of techniques related to the supply chain
management. Within its supply chain, the company is associated to the upstream as well as
downstream distributors through the “supply chain management (SCM)”. The paper discusses of
the SCM activities into the downstream sector of the oil as well as gas industry. There are supply
chain issues which are identified and strategies to examine and improve over the supply chain
issues. Finally, three of the case studies such as Royal Dutch Shell, Chevron Nigeria Limited and
Exxon Mobil are introduced to develop the logistics for the supply chain into the oil as well as
gas industry which can improve efficiency along with bottom line. Research methodologies used
in this research study are conduct of the research by using of the secondary data analysis method.
The data are composed from the articles and websites of the reports of company of selected
Nigeria’s oil and gas industry.
Keywords: Supply chain management, downstream sector, supply chain model.

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
Acknowledgement
The research is conducted to enrich the experience of my life. The research enhances my
knowledge and skills on the selected research topic. With gaining of the knowledge, it gives me
opportunity to face some challenges and overcome them. Without the guidance of my professors,
friends and family, I would not able to complete the study. They all contribute me to enhance my
knowledge on the research topic. I would also like to thank my supervisor -------------- for
providing me constant support and guidance during the entire research process. Without all their
help, I am not able to collect secondary data and valuable resources. It also provides us valuable
results for the project work. All their support inspires and enlightens me to go through the
research process.
Heartfelt thanks and warmest wishes,
Yours Sincerely,

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.1 Background of the supply chain in oil and gas industry........................................................8
1.1.1 Overview of the oil and gas industry in Nigeria.............................................................8
1.1.2 Supply chain management (SCM) in oil and gas industry.............................................9
1.2 Relevance of the research topic...........................................................................................10
1.3 Purpose of the research study..............................................................................................10
1.4 Research aim and objectives................................................................................................11
1.4.1 Research aim.................................................................................................................11
1.4.2 Research objectives......................................................................................................11
1.5 Research questions...............................................................................................................12
1.6 Problem statement...............................................................................................................12
1.7 Research outline...................................................................................................................13
1.8 Summary..............................................................................................................................14
Chapter 2: Literature Review........................................................................................................15
2.1 Introduction..........................................................................................................................15
2.2 Supply chain framework in oil and gas industry.................................................................15
2.3 Supply chain management...................................................................................................17
2.3.1 Supply chain management in Nigeria oil and gas industry..........................................17

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
2.3.2 Downstream oil and gas sector of Nigeria....................................................................18
2.4 Challenges in oil and gas supply chain................................................................................19
2.5 Supply chain strategies in oil and gas industry....................................................................20
2.6 Summary..............................................................................................................................22
Chapter 3: Research Methodology................................................................................................23
3.1 Introduction..........................................................................................................................23
3.2 Method outline.....................................................................................................................23
3.3 Research philosophy............................................................................................................25
3.3.1 Justification for selection of chosen philosophy...........................................................26
3.4 Research approach...............................................................................................................26
3.4.1 Justification for selection of chosen approach..............................................................27
3.5 Research design...................................................................................................................27
3.5.1 Justification for selection of chosen design..................................................................28
3.6 Data collection procedure....................................................................................................29
3.6.1 Data sources..................................................................................................................29
3.6.2 Data techniques.............................................................................................................29
3.7 Ethical considerations..........................................................................................................30
3.8 Research limitations.............................................................................................................31
3.9 Time horizons......................................................................................................................31
3.10 Summary............................................................................................................................33

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
Chapter 4: Research Data..............................................................................................................34
4.1 Introduction..........................................................................................................................34
4.2 Nigeria crude oil production................................................................................................34
4.3 Distribution of GDP across economic sectors from 2010-2016 in Nigeria.........................36
4.4 Natural gas production in Nigeria........................................................................................37
4.5 Case study analysis..............................................................................................................39
4.5.1 Chevron Nigeria Limited case......................................................................................39
4.5.2 Exxon Mobil case.........................................................................................................40
4.5.3 Royal Dutch Shell case.................................................................................................41
4.6 Summary..............................................................................................................................42
Chapter 5: Discussion....................................................................................................................43
Chapter 6: Conclusion and Recommendations..............................................................................49
6.1 Conclusion...........................................................................................................................49
6.2 Linking with objectives.......................................................................................................49
6.3 Recommendations................................................................................................................51
6.4 Limitations of the study.......................................................................................................51
6.5 Future scope of the study.....................................................................................................52
References......................................................................................................................................53
Appendix........................................................................................................................................58
Reflection...................................................................................................................................58

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
Table of Figures
Figure 1: Supply chain framework in oil and gas industry............................................................16
Figure 2: Supply chain in oil and gas industry..............................................................................18
Figure 3.1: Types of Research Philosophies..................................................................................25
Figure 3.2: Types of Research Approach......................................................................................27
Figure 3.3: Types of Research Design...........................................................................................28
Figure 4.1: Nigeria crude oil production.......................................................................................35
Figure 4.2: Distribution of GDP across economic sectors from 2010-2016.................................36
Figure 4.3: Natural gas production in Nigeria...............................................................................38

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AN ANALYSIS OF SUPPLY CHAIN ACTIVITIES IN NIGERIA DOWNSTREAM OIL AND
GAS INDUSTRY
Table of Tables
Table 1: Gantt chart.......................................................................................................................32
Table 4.1: Nigeria crude oil production.........................................................................................34
Table 4.2: Distribution of GDP across economic sectors from 2010-2016...................................36
Table 4.3: Natural gas production in Nigeria................................................................................37
Table 4.4: Oil and gas reserves and production of Chevron Nigeria Limited...............................40
Table 4.5: Oil and gas reserves and production of Exxon Mobil..................................................41
Table 4.6: Oil and gas reserves and production of Shell Nigeria..................................................42
Table 5.1: Three biggest oil and gas players.................................................................................44