Dissertation on Health & Safety Management in Port-Harcourt Refinery
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Thesis and Dissertation
AI Summary
This dissertation provides a critical analysis of health and safety management within the oil and gas sector, using Port-Harcourt Refinery as a case study. It investigates the present conditions of Nigerian refineries, identifies challenges faced by management in ensuring health and safety, and explores the underlying reasons for these challenges. The research utilizes secondary data from newspaper articles, government websites, and statistical data, supplemented by insights gathered from interviews with refinery managers. Key findings highlight issues such as decaying equipment, poor governance, corruption, and the impact of militant attacks. The study concludes with recommendations aimed at improving health and safety management practices within the refinery, including enhancing training, establishing clear communication channels, and implementing stricter legislation. This document is available on Desklib, a platform offering a wide array of study tools and solved assignments for students.
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
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
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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…!
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.
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.
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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
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
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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
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
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
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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
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
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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
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
8OIL AND GAS MANAGEMENT DISSERTATION
Chapter 1: Introduction
1.0 Introduction
This research study highlights the critical analysis of the management for health and
safety in an Oil & Gas environment. The organization that is considered for this research work is
Port-Harcourt Refinery. This chapter focuses on the background of the study, rational of the
research, problem statement along with the aim, research objective and research question for the
research. This chapter also demonstrates the pictorial representation of the structure of the
research.
1.1 Background of the study
The refineries in Nigeria are in ailing conditions and the amount of petrol they produce in
very less. This is due to the mismanagement of the corporations and the Nigeria has become
dependent on imports from OPEC members. The refineries in Nigeria require heavy investments
and it is estimated that $2 Billion is required to prevent the refineries form decay (The Guardian
2018). This will enable them to produce 450,000 barrels per day. Nigerian National Petroleum
Corporation’s board has looking for investors that can prevent the refineries form deteriorating.
There are other reasons that are liable for the pollution and destruction of the livelihoods in
Nigeria. There are oil refineries that operate illegal refineries in delta states which leads to the
self-destruction and vicious circle of pollution (The Guardian 2018). Moreover, after the 1967-70
Biafran civil wars, these people do not receive any benefits from stopping or cleaning up their
pollution (The Guardian 2018). This result in the miserable health of the workers and no access
to safe drinking water and due to poor education services in this place, workers cannot get proper
information regarding the benefits of clearing the pollution (The Guardian 2018).
Chapter 1: Introduction
1.0 Introduction
This research study highlights the critical analysis of the management for health and
safety in an Oil & Gas environment. The organization that is considered for this research work is
Port-Harcourt Refinery. This chapter focuses on the background of the study, rational of the
research, problem statement along with the aim, research objective and research question for the
research. This chapter also demonstrates the pictorial representation of the structure of the
research.
1.1 Background of the study
The refineries in Nigeria are in ailing conditions and the amount of petrol they produce in
very less. This is due to the mismanagement of the corporations and the Nigeria has become
dependent on imports from OPEC members. The refineries in Nigeria require heavy investments
and it is estimated that $2 Billion is required to prevent the refineries form decay (The Guardian
2018). This will enable them to produce 450,000 barrels per day. Nigerian National Petroleum
Corporation’s board has looking for investors that can prevent the refineries form deteriorating.
There are other reasons that are liable for the pollution and destruction of the livelihoods in
Nigeria. There are oil refineries that operate illegal refineries in delta states which leads to the
self-destruction and vicious circle of pollution (The Guardian 2018). Moreover, after the 1967-70
Biafran civil wars, these people do not receive any benefits from stopping or cleaning up their
pollution (The Guardian 2018). This result in the miserable health of the workers and no access
to safe drinking water and due to poor education services in this place, workers cannot get proper
information regarding the benefits of clearing the pollution (The Guardian 2018).
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9OIL AND GAS MANAGEMENT DISSERTATION
In addition to that, the petroleum minister of Nigeria has explained various reasons due to
which the major Nigerian refineries have not undergone repairs even after investigation from the
original builders. After assessing the functional conditions of the refineries, it has been seen that
the extent of dilapidation and the decay of the major equipments are high. The equipments have
not been maintained for over some decades, and this shows the lack of management of the
refineries concerning health and safety measures for the organization. The original builders have
taken the contracts during the term of the previous government and they were unable to make the
changes, as they were unaware of the present conditions of the equipments at that time. Thus,
this research will highlights the present conditions of the refineries in Nigeria, challenges faced
by the management in health and safety of refineries in Port-Harcourt Refinery and possible
reasons for the current conditions of the management in health and safety in the same company.
1.2 Rationale of the research
Oil and gas refinery sector are one of the most dangerous place to work. Workers here
have to maintain their health along with their working procedures. However, this is not possible
for the worker to know all the flaws in the safety system of the refinery and thus, in spite they are
careful in their working procedure, their health get affected and sometime big accident also
occurred. This is a major problem in Nigerian oil refineries as every state or nation has legal
regulation for the safety of the worker in the organization. They also have to maintain the
environment legislations in order to accomplish their organizational objectives. However, in
Nigerian refineries, there is huge lack of managerial end regarding the heath and safety measures
of the refineries. This can be shown from the statistics that the number of fatality rate is 308 in
the last seven years (Dailytrust.com.ng 2018).
In addition to that, the petroleum minister of Nigeria has explained various reasons due to
which the major Nigerian refineries have not undergone repairs even after investigation from the
original builders. After assessing the functional conditions of the refineries, it has been seen that
the extent of dilapidation and the decay of the major equipments are high. The equipments have
not been maintained for over some decades, and this shows the lack of management of the
refineries concerning health and safety measures for the organization. The original builders have
taken the contracts during the term of the previous government and they were unable to make the
changes, as they were unaware of the present conditions of the equipments at that time. Thus,
this research will highlights the present conditions of the refineries in Nigeria, challenges faced
by the management in health and safety of refineries in Port-Harcourt Refinery and possible
reasons for the current conditions of the management in health and safety in the same company.
1.2 Rationale of the research
Oil and gas refinery sector are one of the most dangerous place to work. Workers here
have to maintain their health along with their working procedures. However, this is not possible
for the worker to know all the flaws in the safety system of the refinery and thus, in spite they are
careful in their working procedure, their health get affected and sometime big accident also
occurred. This is a major problem in Nigerian oil refineries as every state or nation has legal
regulation for the safety of the worker in the organization. They also have to maintain the
environment legislations in order to accomplish their organizational objectives. However, in
Nigerian refineries, there is huge lack of managerial end regarding the heath and safety measures
of the refineries. This can be shown from the statistics that the number of fatality rate is 308 in
the last seven years (Dailytrust.com.ng 2018).
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Image 1: Oil and Gas refineries fatality rate 2010- 2017
(Source: Dailytrust.com.ng 2018)
The main reason for these accidents is injuries during the pipeline repairing, attacks on
these workers, accidents and tank inflammations. Nigerian National Petroleum Corporation
(NNPC) reported death of seven people in Port-Harcourt refinery fire in the year 2014
(Dailytrust.com.ng 2018). Thus, this research will highlight the challenges faced by the
management in health and safety of refineries and the possible reasons for the current conditions
of such management in Port-Harcourt Refinery.
1.3 Problem Statement
Every organization has to maintain some legislation for protecting their worker’s health
and environmental concern. However, in Nigeria, due to lack of monetary resources, illegal
business procedures and lack of knowledge among the people, the management often overlooks
the safety concern in their organization. Moreover, yearly accidental incidents and fatality rate
have been increasing in Nigerian Oil refineries and the most prominent reason is the lack of
Image 1: Oil and Gas refineries fatality rate 2010- 2017
(Source: Dailytrust.com.ng 2018)
The main reason for these accidents is injuries during the pipeline repairing, attacks on
these workers, accidents and tank inflammations. Nigerian National Petroleum Corporation
(NNPC) reported death of seven people in Port-Harcourt refinery fire in the year 2014
(Dailytrust.com.ng 2018). Thus, this research will highlight the challenges faced by the
management in health and safety of refineries and the possible reasons for the current conditions
of such management in Port-Harcourt Refinery.
1.3 Problem Statement
Every organization has to maintain some legislation for protecting their worker’s health
and environmental concern. However, in Nigeria, due to lack of monetary resources, illegal
business procedures and lack of knowledge among the people, the management often overlooks
the safety concern in their organization. Moreover, yearly accidental incidents and fatality rate
have been increasing in Nigerian Oil refineries and the most prominent reason is the lack of
11OIL AND GAS MANAGEMENT DISSERTATION
maintenance of the equipments and safety guideline for the workers. This research thus
emphasizes on the current conditions of the refinery in Nigeria, possible reason for the poor
maintenance of the management in Health & Safety of refineries.
1.4 Aim of the research
The study is aimed at examining the current issues in the oil and gas refineries in Nigeria.
The managerial issues in maintaining health and safety concerns will be highlighted by using
thematic analysis based on the research objectives. The conclusion will be based on the findings
from the in-depth analysis of literature and the thematic analysis based on the concerned
organization. The research will identify relevant solutions to the problems faced by the oil and
gas refineries in Nigeria.
1.5 Objective of the research
To critically examine the present conditions of the refineries in Nigeria
To identify the challenges faced by the management in health and safety of refineries in
Port-Harcourt Refinery, Nigeria
To investigate the possible reasons for the current conditions of the management in health
and safety in Port-Harcourt Refinery, Nigeria
To recommend suitable methods to overcome the problems faced by the Port-Harcourt
Refinery
1.6 Question of the research
What is the present condition of the refineries in Port-Harcourt Refinery, Nigeria?
What are the challenges faced by the management in Health & Safety of refineries in
Port-Harcourt Refinery, Nigeria?
maintenance of the equipments and safety guideline for the workers. This research thus
emphasizes on the current conditions of the refinery in Nigeria, possible reason for the poor
maintenance of the management in Health & Safety of refineries.
1.4 Aim of the research
The study is aimed at examining the current issues in the oil and gas refineries in Nigeria.
The managerial issues in maintaining health and safety concerns will be highlighted by using
thematic analysis based on the research objectives. The conclusion will be based on the findings
from the in-depth analysis of literature and the thematic analysis based on the concerned
organization. The research will identify relevant solutions to the problems faced by the oil and
gas refineries in Nigeria.
1.5 Objective of the research
To critically examine the present conditions of the refineries in Nigeria
To identify the challenges faced by the management in health and safety of refineries in
Port-Harcourt Refinery, Nigeria
To investigate the possible reasons for the current conditions of the management in health
and safety in Port-Harcourt Refinery, Nigeria
To recommend suitable methods to overcome the problems faced by the Port-Harcourt
Refinery
1.6 Question of the research
What is the present condition of the refineries in Port-Harcourt Refinery, Nigeria?
What are the challenges faced by the management in Health & Safety of refineries in
Port-Harcourt Refinery, Nigeria?
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