Safety Management in Nigeria’s Oil and Gas Industry

Dissertation

An analysis of the implementation of process safety management within the upstream sector of Nigeria’s oil and gas industry

1.     Chapter 1 Introduction

This chapter introduces the research background and outlines the scope of this study. Research methodology for the study begins with the research background, the problem statement, the aim and objectives of the research, its scope and limitations, the significance of the study and the proposed layout of the thesis.

Research Background

The oil and gas industry faces high risks probabilities due to accidents which can not only cause a lot of harm, but they can also affect the environment adversely for decades (Bigliani, 2013). The most infamous accidents of all time like the ‘Piper Alpha’ in 1988 which caused 167 fatalities and the Deep-water horizon in 2010 which caused 11 fatalities but took years to control the oil spillage which impacted marine life show the wide-ranging impact. Therefore, the risk for oil and gas industry, both in terms of the nature and the level, is quite high which raises pertinent questions about safety awareness, risk analysis and management (Chandrasekaran, 2016). After all, the effect of working in this industry is directly on the employees who work in the industry, and which affects their safety, health, and wellbeing. Research has revealed a diverse set of factors that lead to such accidents, but over 70% of all Oil and Gas Industry accidents are found to be traceable to human errors (Bhavsar, Srinivasan and Srinivasan, 2015). In more recent times, the number of major accidents has increased (Pitblado and Nelson, 2013) indicating underlying issues related to safety management programs and their implementations in the industry Mattia (2013).

The Upstream industry in the oil and gas sector comprises all activities including drilling and getting the oil to on-site transportation and storage till it’s ready to be transported for refining. The Upstream industry has specific safety challenges right from its design, development, to its operations and maintenance (Nasr and Connor, 2014). Owing to the complex nature of the operations involved, there are a large number of factors that need to be controlled to manage risks (Burton, Holman and Banner, 2018). It is important to measure and control safety performance as any unattended hazards can become riskier and their adverse effects can multiply (Boyle, 2015). Process Safety Management (PSM) is concerned with identifying hazards and the likelihood of their occurring in various process industries with the aim of identifying the common challenges and creating plans to reduce their frequency and severity (Khan, Rathnayaka and Ahmed, 2015). Within the oil and gas industry, PSM can be used to increase employee morale, reduce turnover, increase productivity and job satisfaction, have fewer injuries, reduce fines and litigation cost, and improve the company’s image (Hopkins, 2018).

Why PSM in Nigeria’s Oil and Gas Industry?

Nigerian Petroleum Development Company Ltd. (NPDC) is a subsidiary of the state-owned Nigerian National Petroleum Corporation (NNPC) and has its headquarters at Benin. It had reported an oil production of 1.63 million barrels per day in second quarter of 2016 and is the largest oil producer of the region. NPDC is aiming to expand further and toward this aim, needs to strengthen its process safety protocols.

Being the largest oil producer of Africa, Nigeria oilfields cover an area of 75,000 sq. km of Niger Delta which includes shallow water and onshore swamp as well as the offshore deep-water frontier of 200 km. The reservoirs are small and numerous and yield high quality sweet crude oil. There are important benefits of PSM in the Upstream Sector especially in Nigeria as African oil and gas blocks are largely unlicensed with a mere 30% of the 4200 blocks possessing a license to operate (Akpata, Bredenhann and White, 2013). With no licenses, the managers of these blocks are highly unlikely to conduct proper risk assessments and provide adequate measures for safety management. The Nigerian economy which largely depends on the petroleum industry is also associated with major accidents and environmental disasters (Ambituuni, Amezaga and Emeseh, 2014). As a result, it is crucial to identify the key barriers in the implementation of PSM in the Nigerian sector.

Problem Statement

OSHA has issued certain guidelines for maintaining PSM in the refineries (OSHA, 2017). These include key areas of process safety information, process hazard analysis, operating procedures, Mechanical integrity, and management of change. According to OSHA (2017), (1) petroleum refining, industry has shown the highest numbers of fatalities and catastrophic incidents than any other industry sector. The causes that led to these incidents fell into the key areas listed above. The Nigerian upstream oil and gas industry has seen a number of demands for deregulation the industry (Ehinomen and Adeleke, 2012) which ultimately led to its deregulation (Maduekwe, 2016). It is important to see what impact this deregulation has had on the PSM.  Moreover, (2) there have been frequent reports of a lack of safety management systems within Nigerian pipelines (Nnadi et al., 2014) with several failures in the pipeline conditions (Achebe, Nneke and Anisiji, 2012). Therefore, it is essential to analyse how the Nigerian upstream oil and gas sector fares with respect to its implementation of PSM.

Research Aim and Objectives

Aim

The main purpose of this research is to study the implementation of PSM within the Nigerian upstream oil and gas industry and with a view to identifying the key gaps.

The following objectives will guide the study:

RO1: To identify the human factors that impacts the PSM in the Nigerian upstream oil and gas industry.

RO2: To identify the organisational factors that impacts the PSM in the Nigerian upstream oil and gas industry.

RO3: To identify the technical factors that impacts the PSM in the Nigerian upstream oil and gas industry.

RO4: To create a model of PSM that can help managers and researchers in implementing PSM in the upstream oil and gas industry.

Research Questions

The research objectives are drafted into questions to enable easier understanding.

RQ1: What are the human factors that impact the PSM in the Nigerian upstream oil and gas industry?

RQ2: What are the organisational factors that impact the PSM in the Nigerian upstream oil and gas industry?

RQ3: What are the technical factors that impact the PSM in the Nigerian upstream oil and gas industry?

RQ4: How can managers and researchers implement PSM in the upstream oil and gas industry?

Research Scope and Limitations

This study will use a descriptive research design that conducts a systematic literature review to identify the human, organisational, and technical PSM factors associated with the Nigerian upstream oil and gas industry. The scope of the research will be all reputed journal articles, reports, and newspaper articles published since the year 2000. All major databases like Wiley, Google Scholar, EBSCO, ScienceDirect, Elsevier, Taylor and Francis, Sage journals, and ASCE Library will be searched using the keywords of “Process safety management in Nigerian upstream oil and gas industry”. All identified results will be scanned using their abstracts first, and if found suitable, will be read thoroughly. Their references will also be considered as potential information sources. The final list of selected papers will be used to identify common human, organisational, and technical factors associated with PSM.

The research will also use two qualitative interviews to get in depth and contextual information from the executives in a Nigerian Oil Company that operates in the upstream sector. This is also a limitation of the study as only two interviews are used, and the results are relevant for the Nigerian Upstream oil and gas industry and the findings may not be generalisable in other contexts.

Significance of the Study

This study aims to identify the main factors that affect the implementation of PSM in the Nigerian Upstream oil and gas industry. By collating the factors identified through the interviews and the reputable secondary sources, a database will be identified as target factors to impact PSM implementation. The research expects to develop a set of recommendations which can help practitioners and researchers to understand how to improve the PSM implementation in the context of upstream sector. Upstream capacity in the African countries is immense, and its scale of operations is massive. Moreover, the incidence and severity of accidents has been high (Nnadi et al., 2014). Therefore, having a practical model of PSM can definitely make a difference in improving the understanding of PSM and its effectiveness in the upstream sector.

Thesis Layout (Define and update to Upstream)

(Define. Statement offers a concise summary of the main point or claim of the research paper. This is developed through the paper)

This thesis will follow a layout with five chapters. The first chapter introduces the study and explains its purpose, aim, objectives, and scope. The second chapter will discuss the main literature review associated with what is understood by PSM, what is known about the Nigerian upstream sector, the key PSM policies and regulations in Nigeria, and statistics of accidents and near misses that have occurred in the country.

Chapter three will discuss the main methodology followed in the study, detailing the research philosophy, approach, methods, timeframe, and data collection procedures. Chapter four will present the findings and the analysis of the common themes identified through the systematic literature review. The final chapter will present the conclusion and the recommendations of the study which can help improve the implementation of PSM in the upstream oil and gas sector.

Chapter Summary

This chapter has introduced the present study establishing the need for studying PSM in the Nigerian upstream oil and gas industry’s context. The research background and problem statement have clearly explained why PSM is important for the upstream oil and gas industry and how its effective implementation can reduce fatalities and injury losses, thereby improving workers’ morale and brand image. The research objectives have specified their intention to identify the main human, organisational, and technical factors that adversely affect the implementation of PSM. Using this identification, a practical model will be suggested for managers and researchers which can help improve the current system in use within Nigeria.

2.     Chapter 2 – Literature Review

2.1 Introduction

The review of literature contains the survey of available research studies in the context of PSM in the oil and gas industry, with a focus on the upstream sector. It begins with an overview of the need as well as benefits of PSM in the oil and gas industry and moves on to discuss the OSHA guidelines for the upstream sector. Finally, the chapter discusses the work of other scholars elaborating upon the factors that impact on PSM and develops an understanding of the measures to take to ensure adequate PSM in the upstream sector.

2.2 PSM for Upstream Oil and Gas Industry

The upstream oil and gas industry is involved in extraction and on–site transportation of hazardous chemicals and has to operate with complex equipment and technology – making concerns for safety legitimate and requiring adequate attention. The impacts of disasters and security breaches can be explosive leading to loss of life or health for the workers as well as the community and extensive damage to the environment and wildlife (Mason, Retzer, Hill and Lincoln, 2015). Oil and gas organisations therefore require a comprehensive approach to identification of the hazards and development of systems and protocols that can enable the management of risks (Nnadi et al, 2013). PSM or process safety measures are developed in order to regulate the work processes as well as workplace safety and safeguard against accidents at the workplace (Paraventi, 2014). PSMs range from minor practices like ensuring the availability of a workable alarm system, developing comprehensive safety information communication, housekeeping, and ensuring that emergency exits, and assembly points are free and functional, to developing a comprehensive plan including managing the integrity of instruments and having extensive training for the employees (Achaw and Boateng, 2012).

PSM not only helps in managing risks related to accidents or disasters, but also creates a positive impact on the organisations’ image. By showcasing itself as an organisation concerned with the safety of its employees as well as the public and environment, an oil and gas company can develop a positive brand image for itself (Norton, Saura and Scholtz, 2013). In addition, PSM is also found to lead to enhanced employee commitment and retention as employees see their employers as concerned for their safety and well-being (Manchi, Gowda and Hanspal, 2013). By ensuring that hazards are identified and by investing in a culture of safety, oil and gas companies can manage to keep their cost of operations low as following safety procedures and protocols leads to reduction in waste of time and materials as well as maintenance of health and safety of the workforce (Naser, 2011).

2.3 OSHA guidelines for maintaining PSM in Production

The aim of PSM is to ensure that hazardous chemicals are not released into the environment leading to exposure of the employees and public and long-term damage to the ecology. OSHA Guidelines are applicable to any production company if it is producing at least 10,000 pounds or more of flammable liquid and gases. Also, specific processes and activities are required to adhere to the OSHA guidelines.

• If the flammable gas or liquids are being handled on the site or moved through interconnected equipment across the site.
• If the process includes separation of oil, gas or water through diverse means like gravity water separation that is undertaken within in-process tanks, through high- and low-pressure separators or through heat treaters.
• If the process involves compression of gasses from low to high pressure
• All other chemical and physical processing activities that are connected with any of the above in any way.

Some of these above processes like separation processes, were earlier excluded from the PSM coverage, but have now been included in the latest OSHA guidelines. However, these standards are operational for the production phase of the operations – where the oil well is already developed and is functional and its operations include bringing up the oil, transporting it to the separator units and readying it for the external transport. For the case of wells that are being drilled or which are under maintenance, OSHA has developed another set of guidelines in the form of Oil and Gas Well Drilling and Servicing; Proposed Rule, 48 Fed.Reg. 57202 (USDL, 2018). These additions in OSHA guidelines are reflective of the fact that oil production is a complex activity and there are safety requirements that need to be followed during the development of the wells, actual production, in-site transportation, and separation processes.

Oil and Gas Well Drilling and Servicing standards are therefore comprehensive and target the complete safety of the entire operations.

2.4 Key Areas of Process Safety

Process Safety Management (PSM) needs to take a systematic and comprehensive approach that focuses on process, equipment, people, and the organisation to ensure that these are aligned with the safety protocols. More specifically, the PSM covers the process design, technology, changes in process, operation and maintenance activities, employee training programs, organisational preparedness to deal with emergency situations and several other factors (Nordlöf, Wiitavaara, Winblad, Wijk and Westerling, 2015).

Process safety management procedures are developed with the understanding that failure can occur at the level of processes, equipment and procedural level, organisational level and due to human errors. The following key areas for PSM focus therefore are:

2.1.1.   Process, Equipment and Procedural Factors

All the chemicals that the plant deals in need to be fully documented including their runaway reactions or over-pressure hazards, assessment of fire and explosion characteristics, reactivity, corrosion or erosion and any other effect on the workers. In addition, exhaustive details of the process technology need to be documented including the maximum inventory levels that can be kept and the pitfalls of going beyond those levels. The process design and process flow charts as well as piping and instrument diagrams (PIDs) need to be developed in minute detail to capture each and every valve and controls and instrumentations. Computer generated diagrams can be used to develop process designs that conform to the standards of the American Society of Mechanical Engineers and the American Petroleum Institute among other validating associations (Johnstone, Spangler and Hansen, 2017). Also, there is a need to continuously upgrade and update the design in order to ensure sustainability as well as conformance with new research-based industry standards. In addition, there is a need for regular maintenance to ensure the mechanical integrity of the equipment and to inspect and test instrumentations and control systems of the plant.

Operating procedures are required to be documented, managed and controlled in order to ensure conformance with the process design and data handling standards (Pitblado, 2008). In most modern upstream organisations computerised operations control is available that enables the control and management of the entire process. However, according to Johnstone, Spangler and Hansen (2017), it is essential that written documentation exists to guide the automated systems and to cross check them. In addition, the oil production company needs to have safety protocols and procedures in place. The process hazard analysis PHA is the process through which potential hazards are analysed and assessed in terms of their likelihood of occurrence and their magnitude of impact. PHA is a standard procedure that enables the company to prepare for potential impacts of explosions, release of hazardous chemicals, fires or explosions (Pitblado, 2008).

The company also needs to have a fully functional quality assurance system that follows the safety process from the beginning to the end.

While PHA is required to pre-empt any disasters and to ensure that the company has systems and protocols in place that can help mitigate the impacts of such disasters, additional capabilities like incident investigation or forensics are also required. In case of incidents the company needs to be equipped with the process and capabilities to conduct the post-event analysis and understand the causes leading to the event. The availability of incident reporting and analysis can help the company in developing preventive measures to avoid future accidents from happening.

2.1.2.   Organisational Factors

Organisational factors like organisational culture and control systems play a vital role in developing and implementing safety protocols. Oil and gas organisations typically operate from a profit motive and are driven to maintain their operational costs low, often at the cost of employee training and development. Top management’s commitment to safety is directly linked with the organisations capacity to imbibe a culture of safety and align all its processes toward safety (Unnikrishnan, Iqbal, Singh, and Nimkar, 2015). Also, lack of safety leadership, or an organisational structure that does not have a formal position and role for safety management, has been linked with workplace accidents (Unnikrishnanet al, 2015). Research has found that in organisation which lacks a culture of safety, there is disconnect between their documented safety programs and actual implementations leading to errors related to human mistakes and lapses (Boughaba, A., Hassane, C. and Roukia). The lack of reporting and recording systems, which again is a manifestation of the poor organisational control systems, has also been found to impact on the safety outcomes for the oil and gas companies.

2.1.3.   Human Factors

According to a large number of scholars including Pitblado & Nelson (2013), Manchi, Gowda & Hanspal (2013), Zeng, Tam & Tam (2008), Mattia (2013) and Patel, Sherratt and Farrell (2012), human errors cause over 80% of all workplace disasters. Human errors are defined variously by different scholars. For example, human errors are said to result from an inaccurate or inadequate assessment of risk, or an improper behaviour based on wrong decision (Pitblado, 2008), that leads to a negative impact on safety management systems. On the other hand, Mattia (2013) postulates that human errors are simply the result of the inadequate human capacity to manage the processes or machines while Zhu and Xiao-ping (2009) claim that human errors are made both unintentionally where it is simply an error of judgement or assessment, and intentionally, where it is an act of violation. In any case, human errors are acts that lead to exposure or accidents (Zeng et al, 2008). A more adequate classification of human-causes in accidents are slips, lapses and mistakes. Slips and lapses occur when the plans are not executed or not executed as per plan, while mistakes are the consequences of inadequate planning which results in faulty action, where the plans were made based on faulty knowledge or faulty rules (Reason, 1990). Other way to understand human errors is through classifying them into action errors (where no or erroneous action was taken), checking errors (where no checks or wrong checks were made), retrieval errors (lack of relevant information), transmission errors (inadequate communication of information), diagnostic errors (misinterpretation of event) and decision errors (Pitblado, 2008).

As the review of literature has revealed, the scope of errors related to human factors is vast, which makes it essential that oil and gas companies focus on developing safety awareness and training. All the employees involved in the process, including the workers and the contractors, need to have a full understanding of the safety hazards related to dealing with the chemicals and the handling of the equipment. They need training to be delivered so that they can follow the safety protocols and procedures.

All employees, including maintenance and contractor employees involved with highly hazardous chemicals, need to fully understand the safety and health hazards of the chemicals and processes they work with in compliance with the OSHA Hazard Communication standard (Title 29 Code of Federal Regulations (CFR) Part 1910.1200) (USDL, 2018). In addition, they need to have additional training for following emergency response protocols during evacuations or for helping colleagues or the community. Also, employees can be trained to develop investigation skills to conduct post event investigation and analysis to explore the reasons for any incidents.

Chapter Summary

This chapter elaborated upon the need for PSM in the oil and gas industry owing to the potential enormous detrimental impacts of accidents in the industry and highlighted the benefits PSM in the form of lowered costs of operations, employee engagement and retention, brand image and profitability. The OSHA guidelines related to the upstream sector were discussed to develop a comprehensive overview of the processes that need to be addressed for safety concerns. Finally, the review aimed to explore the areas related to technological factors, organisational factors and human factors that impact on safety measures in oil and gas sector.

3.     Chapter 3 Research Methodology

Introduction

This chapter presents the research methodology, including the research philosophy and approach, research methods and the research design that was used to conduct the research. It aims to underpin the choice of methods and approaches selected for this study with justification of their suitability in the context.

Research Philosophy and Approach

The research takes a descriptive approach and a phenomenological approach as it aims to obtain information from the perspectives of the people who are knowledgeable and involved in the issue under study. A phenomenological approach enables the collection of the data in a contextually rooted manner, and thus can provide a holistic picture of the situation. This is in contrast to a positivistic approach, which aims to limit the subjective involvement of the participants and is most suited in the case of experimental design or survey methodology (Fletcher, 2017).

Research Methods

The research employs both secondary and primary methods in order to provide a comprehensive and in-depth study. The secondary research is conducted using a review of literature, based on available research in the context of safety processes employed in the upstream sector of oil industry and the factors illustrated in research impacting on safety management protocols and programs. The aim of the literature review is to develop a basic framework and understanding and give a context for the analysis and evaluation of data obtained from the primary research.

The primary research used was qualitative in nature and is based on the interviews of two senior executives in an upstream oil organisation in Nigeria. The aim of the interview method is to collect and collate material regarding the process safety measures employed in the upstream oil sector and to explore the impact of human, organisational, and technical factors on them. More details about the method of data collection and instrument of data collection are discussed in later sections.

Research Design

The research used a semi-rigid design, which allowed for both flexibility and adherence to schedule (Creswell and Creswell, 2017). The research uses qualitative approach and as such, it was needed to be conducted using interview methods and semi-structured questionnaires for focused group, and it was important to have flexibility in scheduling and collecting material so as to consider the convenience of the research participants as well as to obtain relevant and contextual data. 

3.1.1.   Sample

The research sample was selected in a non-random, judgemental manner, as it was deemed essential to obtain information from people who are in a position to understand PSM and who are directly involved in its implementation. A judgmental sample, unlike a random sample, is not based on selecting items on chance in a random manner, but selecting them based on specific criteria (Silverman, 2016). While a random sample is more representative of the population, a judgemental sample is able to provide more contextual and relevant data (Fletcher, 2017). For the purpose of this study, two respondents were selected from the Nigerian Oil Company. While the sample size can be seen as small, it is important to note that the two research participants were high level senior executives that were directly and closely involved in Safety processes in the company.

3.1.2.   Data Collection Method

Direct personal interviews were conducted for the collection of data. The interview method enables a researcher to collect in depth, contextual and comprehensive information as it allows the researcher to interact and observe the subject face to face (Fletcher, 2017). It also enables the researcher to explore more details by asking additional questions, and also to collect a large number of non-verbal cues related to body language, facial expression and voice inflexion (Creswell and Creswell, 2017). The interviews also give a chance to the respondents to state their perceptions and opinions freely and without limitations, thus providing the research with expansive data (Silverman, 2016). The Focused Group Questionnaire was used for gathering data through semi-structured questionnaire. Semi-structured Questionnaire was given to nine employees of the company who filled it with answers by hand. The questions used for the interviews and for the focused group are the same.

3.1.3.   Data Collection Instrument

A semi-structured questionnaire was used for the collection of data during the interviews and focused group. The interview questions and the focused group questionnaire are all same. The questionnaire was based on the insights gained through the literature review that had provided several directions and a basic framework to explore PSM in the context of the selected organisation. However, the questionnaire was developed in a semi-structured manner, where it contained a list of questions that could be modified, changed or edited as decided by the researcher during the course of the interviews. This approach enables the exploration of the issue in a more comprehensive and in-depth manner (Creswell and Creswell, 2017). Also, it allowed the interviewer to ask additional questions or omit certain questions based on his judgemental understanding as the interview proceeded.

3.1.4.   Data Analysis Method

Thematic Content Analysis was used for the analysis of the collected interview and focused group questionnaire data. Thematic Content Analysis is found to be a suitable approach for the analysis of qualitative data, as it enables the collation and merging of collected data from different participants into themes that can enable the understanding of the data from diverse perspectives (Silverman, 2016). The analysis was conducted by reading each interview data three times and noting down the themes that were emerging from individual interviews.  The next step was to read the themes from the two different interviews and assess if there were any similarities or differences. The analysis of the themes was then conducted, and the findings discussed in the discussion section of this study.

Ethical Considerations

The research employed all measures to ensure compliance with ethical considerations like voluntary consent, privacy, confidentiality and safety of the participants (Taylor, Bogdan and DeVault, 2015). Permissions were obtained fromNDPC for allowing for the interviews and the participants signed the informed consent forms before the interviews. The participants were made aware that they were free to leave the research or withdraw participation at any time that they wanted. Their personal information was kept private, and their responses were confidential and not linked to their names anywhere in the research study. In addition, the data collected during the interviews was not shared by any third party for any purpose. It was also ensured that the participants were comfortable and had no reason to be concerned about their safety or security during the research.

Research Validity and Reliability

The research validity is driven from the fact that the questionnaire is based on the insights gained from an exhaustive review of literature, and closely follows the direction taken by scholars conducting similar research (Taylor, Bogdan and DeVault, 2015). The research was also considered by following rigorous research protocol to ensure ethical approach to material, data collection and analysis.

Research Limitations

The research suffered from the limitation that only two participants were included for the interviews, which makes the research findings low on applicability. Another limitation of the research was that the research questionnaire used for the focused group was not developed in a statistically tested manner but placed on the premises obtained from the review of literature, and hence its validity and reliability may be low.

Chapter Summary

This chapter provided an overview of the phenomenological approach to research and the qualitative interview, and focused group questionnaire methods used for data collection. It gave details of the sample selection which included two respondents for interviews and nine respondents of focused group from among the top officials of NDPC and elaborated upon the thematic content analysis method used for data analysis. The chapter also discussed ethical considerations like confidentiality, privacy, security of the respondents, and listed the limitations in the form of limited sample size.

4.     Chapter 4: Data Analysis:

4.1. Introduction

The data analysis chapter is structured in terms of the four research questions of the paper. The analysis looked at the primary and secondary data for investigating the results of the four research questions (CIRT, 2019). The study has used the case study of Nigerian Petroleum Development Company Ltd for the analysis of the upstream Oil and Gas Industry. The primary data gathered from the two interviews and the nine focused group respondents compared with the literature review in order to find out if NPDC is implementing the PSM model in its company and what factors are influencing on the PSM in the upstream sector of the Oil and Gas Industry of Nigeria.

The interview is designed based on the same questions investigating on the human, organisational and technological factors that affect PSM (Saunders, 2011). Other than that, the interviewees are asked about the implementation of the PSM, and recommendations on its efficient implementation.

4.2. RQ1: What are the human factors that impact the PSM in the Nigerian upstream oil and gas industry?

The two interviews that were conducted were with the Deputy Manager of the NPDC facilities and with the Superintendent, Fire Protection & Maintenance for the NPDC Headquarters.

The two interviews conducted, and the data collected through the nine focused group questionnaires included questions on the human factor affecting the PSM in NPDC. These questions were.

1. Do you think that the job-design has been undertaking keeping the human factors in consideration?
2. Do your job descriptions give clear and adequate directions to employees to guide the work they do?
3. Do you provide sufficient training to your employees to enable them to perform at the best of their ability and skills?
4. Does your recruitment process, while recruiting people for various job activities, carry out assessment psychologically, physically and emotionally that will be suitable for the candidate in each of their job roles?

The two interviewees and the nine focused group respondents answered with similar answers in this respect. Both interviewees informed us that all field personnel are provided with adequate training in equipment as well as software. Other than this, the offshore personnel are also given swimming survival lessons before their deployment. Other than this, all personnel undergo mental, psychological and physical evaluation to ensure that they are appropriate for the job function. NPDC Human Resource ensures that every job assigned is suitable for the person. In terms of chemical handling, the persons assigned for its handling know how to handle these chemicals safely and has knowledge about the chemical and are trained about the procedure for instances of ingestion, inhalation or any other type of contact with the chemicals. As per the Superintendent, every individual is given hands-on training by his supervisor or is entered into structured training programs.

Thus, this shows that the company NPDC is following the protocol in terms of human factors. The Human Resource of the company has considered the human factors that can affect the safety of its procedures and employees.

As per the review of literature, the scope of human errors is vast, which makes it necessary that the oil and gas companies focus on the development of safety awareness and training of their employees. All the workers involved in the process need to be fully aware of the safety hazards related to the handling of the chemicals and their handling equipment. They need to be well trained in order to efficiently follow the safety protocols and procedures (OSHA, 1994).

Furthermore, the workers also need to have additional training for following the emergency response protocols for the evacuations or for aiding the colleagues and community. The analysis of the questionnaire shows that the company NPDC has measures for effectively handling the human factors through training, hands-on workshops and education about the safety hazards, chemicals, safety and evacuation protocols (HSE, 2019).

The literature also showed that the employees can also be trained to develop investigation skills for the exploration of the accident. However, this practice is not found in NPDC.

RQ2: What are the organisational factors that impact the PSM in the Nigerian upstream oil and gas industry?

For the organisational factors, the questions that were included in the interview were.

1. What are the organisational factors that impact PSM?
2. Do you think that the organisational structure allows for effective communication needed for the success of PSM?
3. Do you think that leadership style is suited to motivate people to contribute their optimum towards PSM?
4. The way the leadership done; the way the leadership is structured will help to implement a successful PSM?
5. Do you think then that the organisational culture enables motivation and creativity that can add to the success of PSM? It shows that your HSE culture is in place to enable motivation and creativity but is not specifically for PSM.
6. Do you now think that the leadership style is suited to motivate people to contribute their optimum towards PSM?
7. Do you now think that the organisation’s human resource policies provide suitable motivation and incentive for employees to help them work at their best?

The answers to these questions through the interviews were also largely similar. Both of the interviewee participants and most of the nine respondents considered that the current leadership style is apparently aligned with the implementation of the PSM. They think that the human resource policies are efficient in providing motivation to the employees in helping them implement it. The democratic leadership style with top to bottom organisational structure was recommended for the implementation of the PSM as it involves everyone in the organisation. Mr. The Superintendent, however, showed that the motivation level of the employees is not so good in terms of the fact that they are moved and deployed without consideration of their own interests. The incentives, however, are good enough to compensate for it. The only problem that was identified for the implementation of the PSM was Change Management. This is the problem which has been repeatedly mentioned by participants. They consider this in terms of the past implementation of the HSE in the company, where the employees were reluctant to adapt to it.

As per the literature review, the lack of efficient leadership, or an effective organisational structure that does not facilitate the formal position for safety management, has been shown to have link with workplace accidents(Unnikrishnan et al., 2015).Study has found that in companies which lack a comprehensive culture of safety, usually their documented safety programs and its actual implementations have difference which often leads to human errors in the form of mistakes and lapses(Boughaba, Hassane and Roukia, 2014). The lack of reporting and documentation systems is the manifestation of the poor organisational control systems. This has been found to influence the safety outcomes for the oil and gas companies.

Thus, the analysis shows that NPDC has the needed leadership, and management that can facilitate the culture of safety management, and implementation of PSM. However, change management has remained a problem for it. This shows that the company can work on using involving strategies for its workers so that the workers are aware of the benefits of implementing PSM and thus do not resist change.

RQ3: What are the technical factors that impact the PSM in the Nigerian upstream oil and gas industry?

The questions asked regarding the technical factors affecting the PSM were;

1. What are some of the problems related to technology failures that have impacted the PSM system in your department?
2. What about some of the problems related to unavailability of adequate technology or suitable upgrade that has impacted the PSM?

For the two questions, the answers from both interviews and the focused group questionnaires showed that as no PSM has been implemented in the facility, there is no way they can evaluate what technical factors would have more impact on the PSM.

As per the literature review, it is shown that PSMs includes minor practices like assurance of the availability of a workable alarm system, use of PPEs, development of a comprehensive safety information communication, efficient and timely housekeeping, and assurance of awareness of all emergency exits and assembly points  and their proper functionality, to major planning frameworks for the development of a comprehensive plan that includes the management of the integrity of instruments and efficient training programs for the employees(Achaw and Boateng, 2012).

The company does not have PSM at its facilities. However, it is following the HSE (Health, Safety and Environment) protocols effectively. Still, it needs to adopt the PSE to stop accidents and fatalities. For that, it would need to upgrade its technology, deploy new equipment and train the managers and employees to use it. However, PSDA has not implemented PSA, which means that these factors are not present.

RQ4: How can managers and researchers implement PSM in the upstream oil and gas industry?

The questions asked during the two interviews and from the focused group participants are;

1. As a supervisor, what challenges are you facing during the implementation of PSM?
2. So, what type of control system do you think may work better, should the NPDC decide to put PSM in place?
3. What type of leadership style do you think is most suitable for the success of PSM?

The company NPDC is not following PSE at its facilities. However, the company has been using the HSE protocols for its procedures quite aggressively. The employees are entitled to report any problem that they find as troubling to the management. The company has suggestion boxes for the HSE protocols and undergoes the investigation of each of the suggestions on weekly basis. The company has an HSE department which is assigned for its implementation and control. The company has not implemented PSM, however there is awareness of the PSM framework and how it works. The company has also shown positive attitude towards its implementation. The managers consider that the implementation of PSM will turn out to be beneficial for the company and help prevent it from any damages and hazards.

The company considers the change management as one of the main problems in the implementation of the PSM as employees usually do not like changes. The resistance to the adaptation of HSE was given as an example to show this problem. The managers mentioned that the company should conduct programs to make the employees aware of the benefits of the implementation of PSE before its implementation. The management should also work on taking their inputs to involve them in the process. In terms of the implementation of the PSE, the Superintendent has given a good advice on its planning which should be considered. He suggested that the technical controls should be given more priority. The large extent of the hazard or risk is covered in this way through the use of technical controls. This should be considered from the designing stage. After this, the remaining risk areas are mostly related to human factors which can then be covered through trainings, hands-on workshops and practice.

Through the implementation of the PSM NPDC would able to consider the factors of; the process design, organisational preparedness, technology, operation and maintenance activities, changes in process, employee training programs, dealing with emergency situations and several other (Nordlof et al., 2015).Thus, it is shown that the Nigerian Upstream sector of Oil and Gas Industry of which NPDC is one big contributor has no structure or programs for PSE. However, HSE is used for the Safety and Health of the employees and environment. But, the constant hazards, accidents, and fatalities show that implementation of HSE is not enough. Therefore, PSE should be considered for implementation. The recommendations for the PSE implementation are shown in this chapter; however, the next chapter also gives additional suggestions that can be sued by NPDC for the implementation of PSE.

Chapter Summary

This chapter discussed the findings from the interviews and the focused group in the context of the four research questions. It found that NDPC is not using PSM formally, though it is training its employees extensively in safety related aspects. The organizational factors like structure and culture are expected to act as barriers to any change related to implementation of PSM. NDPC is also not fully aware of the impact of technological factors on safety, and there is scope for focusing on technological upgrades and training of employees. The top managers can contribute toward PSM implementation by developing greater flexibility in their approach and encouraging employee participation in the process.

5. Conclusions and Recommendations

5.1 Conclusions

The research was successfully conducted and the answers for the four research questions were discussed and analysed. More specifically, the research made the following conclusions in response to the research questions:

RQ1: What are the human factors that impact the PSM in the Nigerian upstream oil and gas industry?

NPDC has attempted to reduce the possibility of human errors by creating safety awareness, ensuring that all employees undergo adequate and relevant training in handling workplace safety, and by ensuring that all employees undergo psychological and physical evaluation to ensure their fitness to work in the conditions. However, it was also assessed that the company officials did not discuss about performance management and control systems and tools – which can ensure that the employees are actually following their training and indulging in safe practices.

RQ2: What are the organisational factors that impact the PSM in the Nigerian upstream oil and gas industry?

NDPC appears to have a top down leadership style, a hierarchical structure with long chains of commands and low two-way communications. The organisational culture appears to lack in a holistic approach and focus on employees, including safety. This implies, that even in spite of the availability of trainings and emergency protocols, it is possible that the company lacks an overall focus on safety and the employees lack motivation. Moreover, lack of participative decision making and presence of top-down communication channels, make it more difficult for the company to ensure that all employees are on board with safety protocols and that there is acceptance of PSM when it is implemented formally.

RQ3: What are the technical factors that impact the PSM in the Nigerian upstream oil and gas industry?

The research found that no formal PSM was being implemented in the company; however, there was an adherence to HSE protocols. The company officials were not forthcoming about any technological problems that they may have faced, and which could have impacted on safety. However, it can be concluded that there is a need for adopting latest technology and processes along with a culture change to ensure effective PSM.  Also, latest technology upgrades need to be supported by employee training and skill upgrades to ensure that the employees are equipped to handle the instruments, technology and control systems for safety management.

RQ4: How can managers and researchers implement PSM in the upstream oil and gas industry?

The research concluded the management need to develop a culture of participation and safety management through effective change management in order to ensure that PSM is successfully implemented. The company has faced intense resistance to change previously, when it had initiated the HSE framework for safety, and the managers expect the same resistance in the event they try to bring in PSM. It can therefore be concluded that the company needs to be prepared with top leadership commitment, a conducive organisational culture supported by a flatter organisational structure and two-way communications. 

The above conclusions call for the following recommendations for the NDPC.

5.2 Recommendations

1. Reducing Human Factors Related Safety Problems

-Ensure comprehensive training need analysis to ensure each individual employees’ preparedness to handle their jobs safely and to act appropriately in case of emergency

-Enhance existing controls, appraisal systems and management systems to ensure greater compliance and further reduction in human and technology related errors.

2. Reducing Technology Related Safety Problems

Technology related problems may be reduced by ensuring that the company is using latest versions of equipment, software and processes, and that the personnel are well-trained and operate with a focus on safety management.

 3. Managing Organisational Factors and Implementing PSM

NDPC operates in the upstream sector that is highly prone to accidents and fatalities, and the fact that it does not have a formal PSM in place should be of concern. Based on the findings and conclusions drawn from this research, it is therefore recommended that NDPC develop and implement PSM framework to ensure sustainable operations.

4. Use Effective Change Management for PSM

The research findings have revealed the organisational factors like hierarchical structure, lack of two-way communications and non-participative decision making that have made it difficult for the company to usher in any new changes. It is therefore recommended that NDPC apply a change management model like Kotter’s Eight Stages of Change or Lewin’s Force-Field Analysis before implementing PSM. More specifically there is a need to:

1. Develop a vision for PSM and its positive impacts on employee safety and effectiveness
2. Articulate and communicate this vision
3. Enlist top management support to ensure the availability of necessary funding and time allocation
4. Make coalitions with change leaders or people across different levels of hierarchy that can promote PSM and create a positive aura around it
5. Ensure that employees feel free to voice their opinions and concerns, and seek more information about PSM
6. Develop a plan of action with milestones to guide the implementation
7. Provide constructive feedback and guidance to employees during the process of implementation
8. Develop a culture of participation to encourage and motivate employees’ acceptance of changes
9. Develop management control systems that can ensure that employees adhere to the new protocols and follow them in the long term.
10. Ensure that there is a continuous learning process 

5. Follow Action Research Approach

NDPC can adopt PSM using the above process, but it needs to continue to move toward a safer workplace through continuous learning. For this, it is recommended that an action research approach be adopted – where all critical events and incidents are treated as learning points and not just as accidents. The company needs to develop a culture where employees feel empowered to report problems and where the management has systems in place that allows the employees to learn from lapses. Also, in order to sustain the change management brought about by PSM, there is a need to conduct time-bound appraisals of the performance of PSM and to develop further organisational learning programs for continuous improvements in the system.   

Chapter Summary

This chapter presented the conclusions drawn from the research which underscore the need to change the organizational and technological factors at NPDC, and highlight the role expected to be played by the top management for future implementation of PSM. The chapter also presented recommendations in the form of change management strategy to be followed by NDPC while implementing PSM.

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Appendix A: Research Questionnaire

RQ1: What are the human factors that impact the PSM in the Nigerian downstream oil and gas industry?

• Do you think that the job-designs have been undertaken keeping the human factors in consideration at PSM?
• Do your job descriptions give clear and adequate directions to employees to guide their work?
• Do you provide sufficient training to your employees to enable them to perform at the best of their ability and skills?
• Does your recruitment process focus on assessing psychological, physical and emotional suitability of the candidate with the job’s requirements?

RQ2: What are the organisational factors that impact the PSM in the Nigerian downstream oil and gas industry.

-Do you think that the organizational structure allows for effective communications needed for success of PSM?

-Do you think that the organizational culture enables innovation and creativity that can add to the success of PSM?

-Do you think that leadership style is suited to motivate people to contribute their optimum toward PSM?

-Do you think that the organization’s human resource policies provide suitable motivation and incentive for employees to help them work at their best?

RQ3: What are the technical factors that impact the PSM in the Nigerian downstream oil and gas industry.

-What are some of the problems related to technology failures that have impacted the PSM?

-What are some of the problems related to unavailability of adequate technology or suitable upgrades that have impacted the PSM?

-Are there any problems encountered due to lack of alignment or connectivity between legacies technologies and new t   echnical resources?

-What are some of the problems related to lack of technical support that may have impacted on the PSM?

RQ4: How can managers and researchers implement PSM in the downstream oil and gas industry?

-What do you think are the challenges that managers are facing during the implementation of PSM?

-What type of leadership style do you think is most suitable for the success of PSM implementation?

-What are some of the changes that you think are needed in terms of organizational structure or culture that can ensure success of PSM    implementation?

-What type of control systems do you think may work better toward ensuring success of PSM implementation? 

Appendix B: Reflection

Gibbs Reflective Cycle

Description

As a part of my research study, I had to develop a comprehensive plan of research involving a time and budget plan so that I can allocate suitable resources to the activities like conducting desk research and doing the primary research.  I developed the literature review in order to guide the development of my interview questionnaire, and then arranged for my visit to Nigeria to conduct the interviews. I collected the data on tape and transcribed them, and then analysed it to arrive at my conclusions.

Feelings

I felt excited at the prospect of travelling to Nigeria and meeting top officials of an oil and gas company. I was a bit apprehensive and nervous as well, as I needed to ensure that I got the information that I needed to answer my research questions, and traveling was possible only once. I felt happy and empowered after I wrote my report and realised that I have completed the entire task successfully.

Evaluation

I was able to keep to my budget and time schedule, and also maintain ethical protocols and research rigour. I collected high quality data and ensured data integrity and confidentiality. I conducted the analysis objectively and in the process I learned the importance of self-reflection to root out personal biases or pre-conceived notions.

Analysis

I think my approach to the study went well because I took some time to plan it before embarking on it. I was able to develop a detailed research design that gave me guidance along the way. I also think that my communications skills were put to good use during the interviews as I was able to obtain in depth and contextual information that was important for my research. I was also able to develop a high-quality review of literature because I have experience reading research papers and extracting relevant information from them in a succinct manner. This gave me the framework for my primary research questionnaire as well as helped me in conducting the analysis. 

Conclusion

I learnt that time management organisational skills and perseverance are the key skills for conducting a project. I also realised that obtaining information from other people is a difficult task, as people often don’t give full information or change the context of their data. In future, I expect to get more training on conducting interviews to obtain information.

Action Plan

However, I also think I still need to understand to plan for contingencies, especially in the context of primary data collection activities. I also need to learn to be more patience and also delegate some work. I realised that I like to take control and micro-manage, but this makes me focus on too many things and prevents me from giving my optimum to the important tasks.  I would also like to get trained as an interviewer to hone my data collection skills.

Appendix B: Personal Statement 

I have held an interest in oil and gas management which led me to my BSc. Honours in the subject from Plymouth. I also aspire to pursue a career in the oil and gas industry, especially in the field of strategic decision making. These career aspirations drive to give my best to each academic course or assignment that I undertake. I already have considerable experience in project management, data analytics and managing processes and protocols due to my work and project experience in construction and railway industries. My previous experience with business development in human resource and railway sectors has empowered me with the skills for communications, leadership, teamwork and given me the ability to engage people and teams successfully. Having already worked for several years before continuing my education, I already have a deep insight about the linkages between academic learning and industry alignment. I believe that I am also effective when it comes to inter-personal relationships management, especially in cross-cultural situations. Being multi-lingual and having fluency in languages like Spanish, Portuguese, Igbo, and English, has given me enhanced scope to working in settings where diversity is a reality.  Also, I have an evolved sensitivity toward cultural differences and have a proven track record of dealing with people and situations with empathy and ethical orientation.

I have already worked on a large number of related projects, which include strategic decision making, project and risk management, organisational change and acquisitions/mergers, financial management, marketing management, health and safety management, sustainable development, project placement management and design, managing energy resources and regulations and data analytics and technical drawings. My extensive knowledge of the oil and gas sector gives me guidance and direction for the conduction of this research and enabled me to explore the issue of process safety measures in detail. Also, travelling to Nigeria to collect first-hand information in the form of interviews of company officials was possible because of my multi-linguistic abilities and my intricate knowledge of PSM as well as my familiarity with the context of Nigerian oil and gas sector.

I have been taking several courses and writing reports to develop my skills for writing academic assignments, and also intend to develop my interview skills. I believe that by polishing my ability to communicate better, especially when it concerns retrieval of information, will help me both at my academics and at my future career. Being a team worker, I understand that it is important to align team members skills with jobs, and as a leader I believe that delegation is extremely important for both time management as well as for making others feel empowered. I think that I will continue to develop my leadership skills, especially in the context of strategic leadership in the oil and gas field, by studying other leaders and their style of operations. I will also like to ensure that I keep myself abreast with all the latest developments in the oil and gas sector, especially on PSM, sustainability and strategic leadership related issues. I will also continue to research and study the latest standards and protocols of OSHA so as to keep myself informed on the new developments in workplace safety for oil and gas industries.