TITLE:
Improving the Joint Venture Relationship and Working Culture in the Nigeria Oil & Gas Industry
AUTHORS:
Samuel Odusina
KEYWORDS:
Joint Venture, Nigeria Oil & Gas Sector, Relationship Management, Working Culture
JOURNAL NAME:
Open Journal of Business and Management,
Vol.10 No.3,
May
5,
2022
ABSTRACT: The focus of this research is to investigate the working culture and the
relationship between joint venture (JV) partners in the Nigerian oil industry
and its impact on JV project performance. The major international oil companies
(IOC) having JV with the Nigeria National Petroleum Company (NNPC) in Nigeria
are ExxonMobil, Royal Dutch Shell, Total, Chevron, and ENI. An organizational
working culture can be said to be the organization’s belief system, thought
processes, the attitude of the employees, their ideologies, and the
organizational principles of doing things. The research methodology used is a
qualitative questionnaire based on a systematic random sampling of targeted
participants both in and out of the Nigerian oil and gas industry. The research
analyzes the root cause of the inefficiency experienced in
the Nigerian oil industry, which is responsible for JV project delays, recent
divestment by the IOCs, frequent community-related work stoppages at JV project
sites, sabotage of oil pipelines, and the un-restfulness in the Niger Delta
area. The research work is intended to inform the need for cultural change in
JV operations in Nigeria oil and gas industry by providing information on the
existing JV working culture, partners relationship under the current joint
operating agreement (JOA) vis a vis best global practices and to make recommendations
to the Nigerian populace especially the new board of director that will be
appointed early 2022 following the new petroleum industrial bill (PIB) that has
just been signed into law. This article is to provide information for the
required restructuring and define the effective and efficient relationships and
working culture under a new JOA. The result obtained established the fact that
the existing working culture and relationship between the JV partners in the
Nigerian oil and gas industry are not only unsustainable but unfit to deliver
individual or joint venture interest. The JV operations must be incorporated as
a legal entity having its own organization, dedicated management, and a workforce that will develop a positive
working culture focused on achieving the JV goals and objectives.