EVALUATION OF RISK MITIGATION STRATEGIES IN AGBAMI DEEPWATER FIELD DRILLING PROJECTS, NIGERIA

Abstract

The study evaluates risk mitigation strategies adopted in Agbami deepwater field drilling projects in the Nigeria territorial waters with a view to determining their effects on deepwater drilling projects. It assesses the factors that influence the choice of risk mitigation strategies adopted in Agbami deepwater field drilling project. 196 copies of structured questionnaire were administered on respondents and purposive sampling technique was used to select the respondents, 172 copies were retrieved. Descriptive statistical tools such as table, frequency / percentile distribution and Relative Importance Index (RII) were employed while to answer the research questions while Inferential Statistical tools such as One Sample t- test and Pearson Correlation analysis were adopted in testing the hypotheses. Findings from this study reveal that Agbami deepwater drilling project adopted risk mitigation strategies that were important and significant in their effectiveness but risk sharing through outsourcing and partnerships is the first in relative importance followed by others which are risk transfer through insurance process, development and use of comprehensive register, Risk retention and reduction using company internal HES process, risk transfer through contracting process and risk avoidance through development and adoption of alternative The results of test of hypothesis showed that there is a moderate positive significant relationship (r=0.675, p=0.00) between risk mitigation strategies and influencing factors. This showed that risk mitigation strategies adopted in Agbami deepwater drilling project are significantly influenced by certain factors which includes Nigerian oil industry regulatory policies and guidelines, Agbami deepwater field operator’s internal Health Safety and environmental policies, Deepwater drilling equipment technological advancement, Global oil industry accident and incident investigation reports and Technological advancement in deepwater drilling equipment and processes.Also, the test of second hypothesis showed there is a moderate positive significant relationship (r=0.476, p=0.00) between risk mitigation strategies and Agbami deepwater drilling project. The risk mitigation strategies adopted have significant effect on Agbami deepwater drilling project’s overall cost and schedule, Agbami deepwater project operator’s safety and reputation. From these results, risk mitigation strategies adopted significantly affects the cost, schedule and quality of Agbami deepwater drilling project, it will makes a good business sense to pay more attention to the factors that influence the choice made by the project owner in order to ensure that the choice made of risk mitigation strategies positively impact the project delivery and achieve the project objectives.