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Cost-cutting Techniques
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In the recent past, the oil and gas upstream sub-sector was faced with challenges of fall in revenue due to fall in crude oil price and the continuous increase in costs of finding and lifting oil and gas, and increase government expectations on Local Content Policy. The research was designed to examine the impact of cost-cutting techniques used by companies operating in the Nigerian upstream petroleum sector on the Local Content Policy. The study investigated whether cost-cutting measures used affect companies operating in the upstream petroleum sector. A survey was conducted on randomly sampled companies in the Nigerian upstream sector and the Nigerian National Petroleum Corporations. The analysis shed light to the traditional techniques used to cut cost in the oil and gas industry and revealed how cost-cutting could affect Local Content Policy in Nigeria.
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