Development of a Strategic Business and Environmental Management Framework for Entry and Exit in the Oil and Gas Sector: A Case Study of Nigerian Global South
The paper presents the development of a strategic business and environmental management framework for entering and exiting the Nigerian Oil and Gas (O&G) sector. The entry and exit of O&G companies in the Global South (GS) economy especially Nigeria has been highly impacted by institutional failures, political and economic crisis. Environmental issues and poor strategic management in the O&G have led to inadequately or poorly harnessed resources which affects business, host communities and government interests. Multinational O&G companies entering new markets rely on observed pattern, tactical and strategic data, pattern observed in making informed decision as it relates operating in the business environment. In addition, the need to avert, monitor and report environmental impact of production (through community service engagement) calls for the development of a strategic environmental and business management framework aimed at ensuring successful entry and exit in a sustainable manner. Literature in public domain noted that O&G exploration in the UK continental shelves comes with benefits and challenges to include lack of a global multi-cultural regulation. O&G companies operating in Nigeria have introduced the concept of corporate social responsibility (CSR) in dealing with sustainable development and engaging wider stakeholders’ participation. Literature has also argued the importance of the role of stronger regulatory instruments in attracting foreign direct investments in sustaining the O&G industry. It has also been argued that developing a global strategic management framework for managing O&G supply is key for development of the oil and gas sector. On the environmental front, it has been argued that economic development and public acceptance of the need to transit to a circular economy is crucial in ensuring sustainable development. The paper employs interpretivism research philosophy to analyze global issues relating to O&G business and environmental concerns. It calls for inductive research approach in observation, identification of factual patterns. It uses case study as research strategy to explore and develop a strategic environmental and business management framework for entering and exiting the O&G industry especially in the Nigerian GS. The paper proposed that entry and exit in the oil and gas sector should be anchored on a new framework tool entitled “Company Business to Community Business Entry and Exit Strategy (CBCBEES)”. The framework will permit cooperation and partnership between the oil producing communities and the international O&G companies in their pursuit for sustainable development while protecting the environment. CBCBEES will ensure that investors and host communities can invest in the O&G sector with win-win outcomes. Further work would include collection of primary data as part of the validation process of the developed framework. Future work would also include evaluation of the proposed framework with all stakeholders in the Nigerian O&G sector.
Authors: T.K. Olaniyi, F. Nworah, N. Nwankwo
Published in: World Congress on Sustainable Technologies (WCST-2022)
- Date of Conference: 6-8 December 2022
- DOI: 10.20533/WCST.2022.0003
- ISBN: 978-1-913572-57-0
- Conference Location: Virtual (London, UK)