CONTRIBUTION OF INSURANCE IN THE MANAGEMENT OF RISK IN NIGERIA OIL INDUSTRIES (A STUD OF SHELL PETROLEUM PLC)

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

1. Background of the Study                                         1
2. Statement of the Problem                                 4
3. Objective of the Study                                      4
4. Research Questions                                          5
5. Significance of the Study                                         6
6. Scope and Limitation of the Study                     7
7. Definition of Operational Terms                         9

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.

CONTRIBUTION OF INSURANCE IN THE MANAGEMENT OF RISK IN NIGERIA OIL INDUSTRIES (A STUD OF SHELL PETROLEUM PLC)