Critical Analysis of the Management of Health & Safety in an Oil & Gas Environment- Case study of Port-Harcourt Refinery

Running head: OIL AND GAS MANAGEMENT DISSERTATION
Oil and Gas Management Dissertation
Research Topic: Critical Analysis of the Management of Health & Safety in an Oil & Gas
Environment- Case study of Port-Harcourt Refinery
Name of the Student
Name of the University
Author Note

1OIL AND GAS MANAGEMENT DISSERTATION
Acknowledgement
I want to express my gratitude to my principal Mr./Mrs./Ms.
_____________________________________________ for giving me the opportunity to be a
member of the _____________________________ university.
I would like to thank my mentor Mr./Mrs./Ms. ________________________________________
for guiding me under his/her supervision for the project Critical Analysis of the Management of
Health & Safety in an Oil & Gas Environment- Case study of Port-Harcourt Refinery.
My classmates and loving friends are also hold a remarkable place in this journey and helped me
in obtaining necessary things for this project.
I have never been able to complete this project without the support and encouragement given by
my parents and thus I also want to thank them for believing in me.
Thank you all...!

2OIL AND GAS MANAGEMENT DISSERTATION
Abstract
This research work highlights the Critical Analysis of the Management of Health & Safety in
an Oil & Gas Environment for the organization Port-Harcourt Refinery, which is one of the
four refineries in Nigeria. The main idea for selecting this topic is every year hundreds of
workers working in oil refinery lost their life due to poor working conditions. This research
highlights the factors due to which the hazard of the health and safety concern raised. The reason
that is found from the research is the poor management assessments as they do not evaluate the
conditions of the equipments in the refinery. Other reason that has been found from the data
research is corruption among the governing officials, lack of interest of educated managers from
foreign countries in Nigeria and militant’s attack. These data has been found based on the
secondary analysis where the data has been found from the newspaper articles, government
website and statistical data taken form genuine websites. The sample size for the research is three
when considered for primary research. Managers are considered so that they can reveal their
perception on the current state of the Nigerian refinery, identification of the challenges faced by
the management in health and safety of refineries and possible reasons for the current conditions
of the management in health and safety in Port-Harcourt Refinery.

3OIL AND GAS MANAGEMENT DISSERTATION
Table of Contents
Chapter 1: Introduction....................................................................................................................8
1.0 Introduction............................................................................................................................8
1.1 Background of the study........................................................................................................8
1.2 Rationale of the research.......................................................................................................9
1.3 Problem Statement...............................................................................................................10
1.4 Aim of the research..............................................................................................................11
1.5 Objective of the research.....................................................................................................11
1.6 Question of the research......................................................................................................11
1.7 Structure of the Research.....................................................................................................12
1.8 Summary..............................................................................................................................12
Chapter 2: Literature Review.........................................................................................................14
2.0 Introduction..........................................................................................................................14
2.1 Theories on management.....................................................................................................14
2.1.1 Overview Oil and Gas Operations................................................................................14
2.1.2 Risk management..........................................................................................................15
2.2 Health and safety factors of oil and gas refineries...............................................................18
2.2.1 Industrial Hygiene and safety.......................................................................................18
2.2.2 Indoor Environmental Quality (IEQ)............................................................................18

4OIL AND GAS MANAGEMENT DISSERTATION
2.2.3 Insurance Loss Control.................................................................................................18
2.2.4 Workers’ Compensation...............................................................................................19
2.2.5 Training.........................................................................................................................19
2.3 Present conditions of the refineries in Nigeria....................................................................19
2.3.1 State of decay of the equipment....................................................................................19
2.3.2 Poor governing assistance.............................................................................................20
2.5.3 Establishment of illegal refineries................................................................................20
2.4 Challenges faced by the management in Health & Safety of refineries..............................21
2.4.1 Death of workers leads in scarcity of human resources...............................................21
2.4.2 Loss of profitability due to pay of compensation.........................................................21
2.4.3 Poor brand image and brand recognition......................................................................22
2.4.4 No support from government........................................................................................22
2.5 Possible reasons for the challenges faced by the management in Health & Safety of
refineries....................................................................................................................................22
2.5.1 Lack of experienced management................................................................................22
2.5.2 Lack of clear definition of lines of authority................................................................23
2.5.3 Customization of owner specification requirements....................................................23
2.5.4 Ineffective material management plans........................................................................24
2.5.5 Lack of appropriate risk analysis expertise..................................................................24
Chapter 3: Research Methodology................................................................................................25

5OIL AND GAS MANAGEMENT DISSERTATION
3.0 Introduction..........................................................................................................................25
3.1 Research Philosophy............................................................................................................25
3.1.1 Justification for selected research philosophy..............................................................25
3.2 Research Approach..............................................................................................................26
3.2.1 Justification for chosen research approach...................................................................26
3.3 Research purpose.................................................................................................................26
3.3.1 Justification for selected research purpose...................................................................27
3.4 Data collection process........................................................................................................27
3.5 Data Analysis techniques.....................................................................................................27
3.6 Sampling technique.............................................................................................................28
3.6.1 Sample Size..................................................................................................................28
3.7 Ethical consideration...........................................................................................................29
3.8 Research limitation..............................................................................................................29
3.9 Research Timeframe............................................................................................................29
3.10 Summary............................................................................................................................30
Chapter 4: Research Data..............................................................................................................31
4.0 Introduction..........................................................................................................................31
4.1 Secondary data collection....................................................................................................31
4.1.1 Challenges of the Operational Environment and Facilities of refineries that raise health
and safety concern.................................................................................................................31

6OIL AND GAS MANAGEMENT DISSERTATION
4.1.2 Challenge that Port Harcourt refinery faced due to poor health and safety management
...............................................................................................................................................34
4.1.3 Reasons for occurrence of the health and management concerns................................35
4.2 Questions from Managers....................................................................................................39
Chapter 5: Findings/ Discussion of Research Question................................................................42
Chapter 6: Conclusion and recommendation.................................................................................45
5.1 Conclusion...........................................................................................................................45
5.2 Recommendations................................................................................................................47
5.2.1 Rising the benefit of educated managers......................................................................47
5.2.2 Training to the officials................................................................................................47
5.2.3 Developing good communication methods..................................................................48
5.2.4 Formulating strict legislations......................................................................................48
Chapter 7: Self reflection...............................................................................................................49
Reference List and bibliography....................................................................................................51

7OIL AND GAS MANAGEMENT DISSERTATION
Table of Images
Image 1: Oil and Gas refineries fatality rate 2010- 2017..............................................................10
Image 2: Structure of the Research................................................................................................12
Image 3: Risk Management Process in Oil Refinery Organization...............................................16
Image 4: Nigeria’s Downstream Pipeline System (DPS)..............................................................37
Image 5: product loss and fire outbreak in Nigeria.......................................................................38
Image 6: Yearly regional trends of product loss and pipeline interdiction in Nigeria..................38