CONTRIBUTION OF INSURANCE IN THE MANAGEMENT OF RISK IN NIGERIA OIL INDUSTRIES (A STUD OF SHELL PETROLEUM PLC)
ABSTRACT
This project is on the topic titled “The Insurance Contribution in the Management of Risk in Nigeria Oil Industry” The work is divided into five chapters. Chapter one deals with background of the study, statement of problems that led to the research work, objectives of the study the research questions, scope of the research questions, scope of the research question, scope of the research question, scope and limitations of the study, significance of the study and definition of operational terms. Chapter two covers review of related literature, historical development of the insurance, reasons for insurance business in Nigeria, type of drilling operations, various type of risk in oil industry and so on. Chapter three discusses research methodology including source of data and validity of the instruments. Chapter four covers findings and discussions of findings and chapter five covers conclusions and the recommendations.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION 1
CHAPTER TWO
LITERATURE REVIEW 11
2.1 An Overview 11
2.2 Historical Development of Insurance
Business in Nigeria 11
2.3 Reasons for Insurance Business in Nigeria 13
2.4 History of Oil and Petrochemical
Industry Insurance 15
2.5 Types of Drilling Barges/Platform 16
2.6 Varilus Types of Risk in Oil Industry 18
2.7 Various Insurance Cover Available for
Oil Industry for Oil Industry 19
2.8 Problems Facing Insurance Industry
in Management Oil Risk 22
CHAPTER THREE
RESEARCH METHODOLOGY 25
3.1 Sources of Data 25
3.2 Population of the Study 27
3.3 Instrument Used For Study 27
3.4 Validity of the Instrument Used 29
3.5 Reliability of the Study 29
CHAPTER FOUR
SUMMARY OF FINDINGS 30
4.1 Findings 30
4.2 Discussion of Findings 31
CHAPTER FIVE
CONCLUSION AND RECOMMENDATIONS 32
5.1 Conclusion 32
5.2 Recommendations 33
Bibliography 35
Appendix I 37
Appendix II 38
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Nigeria’s economy before independence and shortly afterward largely depended on agriculture. This is because a good number of its citizens are farmers. Infact about 70% of the Nigerian populace then were basically farmers and this goes a long way to show that Nigerians are poor people. Agriculture then was her only source of foreign exchange through the sale of cash corps.
Shortly after independence and the civil war, Nigeria economy changed as a result of oil boom in the early 705. This caused the total neglect of is agricultural sector and other mineral resources which are blessed with. The boom attracted foreign investors in so many sectors, they includes, bank, insurance companies and oil oil producing companies etc. Among the early oil producing companies to exploit its shores of Nigeria include British Petroleum Company, Uni Petrol etc.
Petroleum is a product of crude oil which is found a black substance naturally underground.
The oil industry is an important aspect in the monetization process and industrial growth of all nations which serves as source of energy to most of the modern power generators and machineries.
Petroleum is also serves as sources of revenue and also contributing to the national output. But due to the fact that our country’s economy depends largely on oil and its by product based on chemicals derived from oil sector and natural gas. It is invariably pertinent that one should consider the risk involved and the types that the petroleum industry as a whole are exposed.
One should be thinking of the ways to reduce the risk involved both in the offshore and onshore operations. Insurance cover is an appropriate way of handling and reducing those risk exposures that the oil companies experience. The insurance companies have now the capacity to cover most of the risks being envisaged by the petroleum industry.
Insurance covers losses or destruction of properties, equipment and machineries. Insurance also essentially pays claims on fire out break, theft, oil spillage etc. or temporal disability and medical expense of the employee, or damage to their parties properties and make good any court judgement arising out of their general negligence of any sort.
Insurance most important function is the indemnifying of oil industry in any loss. It prevents the industry form being handicapped financially after any loss or to stop production.
1.2 STATEMENT OF THE PROBLEMS
The major problems that prompted the research of this work include the following:
1.3 OBJECTIVE OF THE STUDY
The objectives of the study includes the following:
1.4 RESEARCH QUESTIONS
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