Assessment Of Oil And Gas Project Implementation Challenges In Ethiopia
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Date
2019-07
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Addis Ababa University
Abstract
The Ethiopian Oil and Gas sector is presented as one of the pillars of the Growth and transformation plans proposed by the Government of Ethiopia. Although the activities in industry dates back to the 1940s, there has not been any commercialization of Petroleum or Natural Gas to date. This project work aims to assess the project implementation challenges in the Ethiopian Oil and Gas industry. An exploratory research design is employed for the research. The research work followed a qualitative approach by using questionnaire and interview as data collection tools. A total of sixteen participants, twelve from the oil and gas companies and four from the regulatory were selected to participate in the research. The participants were selected using purposive sampling technique. The result of the study identified more than 85% of the respondents claimed having both time and cost overrun in their project. More than 90% of the respondents described the project management style of their company as a mix of traditional and agile project management. The research showed subsurface complexity, lack of national technical experts, unavailability of advanced technology for seismic, drilling, well logging, mud logging and other similar operations locally, inability to attract investors, unanticipated change on project scope, and unanticipated project cost existence as the major challenges affecting the implementation of the oil and gas projects in Ethiopia. The research points out the solutions for the challenges in oil and gas project implementation are the government should have a more incentivizing policy in place and should create competent workforce that manages oil and gas projects. It is also suggested more work is required to create a better understanding of how the industry works from the federal to the kebele levels of administration.
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Keywords
Oil and gas projects., Project management, Challenges of oil and gas project implementation