ABSTRACT
This study focused on the effect of business survival determinants on Organizational performance in Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria. The study sought to determine the effect of service determinants on Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria performance, ascertain the effect of quality and cost on Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria effectiveness, determine the effect of institutional and socio - cultural environments on business survival Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria, establish the effect financial and infrastructural factors on business survival of Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria and assess the challenges confronting business survival of Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria. The study used a survey design. Data for this study was collected from primary and secondary sources. The study population of 1000 comprised of the staff and management of Total E and P and Oando Nigeria Plc. The sample size of 286 was derived from Taro Yamane formula. The study employed Pearson correlation coefficient, regression model and Z-test tools to test the hypotheses of the study. The study found out that Business service determinants have a significant effect on Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria performance. The study concluded that financial and infrastructural factors has a significant effect on business survival of Total Exploration and Production of Ocean Oil in Nigeria Plc, Nigeria. The study recommended that management of the firm should endeavor to produce quality goods and services at the lowest possible cost with the use of proper material control towards gaining a competitive edge in the global market.
TABLE OF CONTENTS
Cover Page i
Title
Page ii
Declaration iii
Certification iv
Dedication v
Acknowledgements vi
List
of Tables vii
Abstract viii
CHAPTER 1: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the Problem 3
1.3 Objectives of the Study 5
1.4 Research Questions 5
1.5 Research Hypotheses 6
1.6 Significance of the Study 6
1.7 Scope of the Study 7
1.8 Limitations of the Study 7
1.9 Brief History of the Organization Under
Study 10
1.10 Operational Definition of Terms 13
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 14
2.1.1
Business organizational survival 14
2.1.2
Relationship between environmental
factors, business survival and growth 15
2.1.3 Determinants influencing firms’ survival 17
2.1.3.1
Individual level 17
2.1.3.2
Firm level 18
2.1.3.3
Location level 23
2.1.3.4
Market level 24
2.1.3.5
Industry level 24
2.1.3.6 Environmental
level 27
2.1.4 Organizational performance 28
2.1.5 Determinants of organization performance 29
2.1.5.1.
Personality traits 29
2.1.5.2.
Growth motivation 32
2.1.5.3.
Individual competencies 32
2.1.5.4.
Personal background 33
2.1.6 Business organizational growth 35
2.1.7 Organizational determinants of business
survival 35
2.1.8 Environmental determinants of business
survival 41
2.2 Theoretical Framework 42
2.2.1
Cognitive theory (Piaget, 1964) 42
2.2.2 Systems thinking (Dawidowicz, 2012) 43
2.2.3 Path goal theory (Robert House:1996) 44
2.3 Empirical Review 47
2.4 Gap in Literature 49
2.5 Summary of Reviewed Related Literature 51
CHAPTER 3:
METHODOLOGY
3.1 Research Design 52
3.2 Sources of Data 52
3.3 Population of the Study 52
3.4 Sample Size Determination 53
3.5 Sampling Technique 53
3.6 Description of the Research Instrument 54
3.7 Validity of the Research Instrument 55
3.8 Reliability of the Research Instrument 55
3.9 Method of Data Analysis 55
3.10 Model Specifications 55
CHAPTER 4: DATA PRESENTATION AND
ANALYSIS
4.1 Return of Questionnaire 58
4.2 Data Presentation 61
4.3 Testing of Hypotheses 66
4.4 Discussion of Results 70
CHAPTER 5: SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings 72
5.2 Conclusion 72
5.3 Recommendations 73
5.4 Areas of Further Studies 74
References
Questionnaire
Appendices
LIST OF TABLES
3.1: Target population 52
3.2: Population Table 54
4.1 Return of Questionnaire 58
4.2:
Distribution of respondents by Gender 58
4.3:
Distribution of respondents by Age 59
4.4
Distribution of respondents by
volume of sales 59
4.5
Distribution of respondents by
Qualification 60
4.6 Distribution of respondents by
Existence/Experience 60
4.7: Determine
the effect of service determinants on Total E and P and 61
Oando Nigeria Plc performance.
4.8: Ascertain the effect of quality and cost on Total E and P and Oando
Nigeria Plc 62
effectiveness
4.9: Effect of institutional and socio -
cultural environments on business survival Total 63
Exploration and production and Oando Nigeria
Plc.
4.10: Effect
financial and infrastructural factors on business survival of Total Exploration 64
and production and Oando Nigeria Plc.
4.11: Challenges
confronting business survival of Total Exploration and production and 65
Oando Nigeria Plc.
4.12:
Correlation coefficient analysis on Business service determinants on
Performance 66
4.13:
Regression analysis on Quality and cost on effectiveness 67
4.14:
Regression analysis on Institutional and socio - cultural
environments on 68
business survival.
4.15:
Regression analysis on Financial and infrastructural factors
on business survival 69
4.16: Z-test
on Funding constraints and compliance costs associated on business survival70
Business according to Gloria (2015) is any
commercial or economic activity that tends towards business profit. The
primary, objective of business organizations is to make profit, grow and
survive in the environment in which it operates. The environment in which
business organizations operate is a complex, multi-focus, dynamic and has a far
reaching effect on such organization. The environment tends, shape the outlook,
and goal of the organization by placing constraints on them. These constraints
in the environment of organizations goal could be in the form of competition,
this sets a limit on the goals specify by the organization. For instance, trade
union asking for increase in salary, will affect the shareholder dividend (Gloria, 2015)
Business survival is very crucial at this period
of business turbulence, maintaining a place in this competitive era becomes not
only the responsibility of the owners or leaders of the organization but that
of the employees. Surviving in the global struggle to meet with increasing
demand on firms in the market place has seen many researchers and academicians
having a resort to pay attention to the individual employees in the
organization since innovation in product and services are brought about by
these individuals (Rukevwe & Oke, 2014).
The survival of any business is an important field in the industrial
organization theory and the organizational ecology theory (Mahmood, 2000;
Esteve-Pérez and Mañez-Castillejo, 2008).
Thus, business organization can operate
successfully in isolation without dependence on supportive institutions,
variables and factors (Oginni, 2010) i.e. business organization exists and
operates within an environment where there is complex interplay in terms of
activities as well as networks of relationship between and among human
resources, material resources and other systems. In the views of Aborade (2005)
all business decisions are found to be contingent upon a good analysis of the
environment which is often the bane of all the constraints as this environment
creates the opportunities, threats and problems for the business organisation.
Evolving from this is the belief that business organization is an integral part
of its environment on the ground that they are mutually interdependent and
exclusive where the environment plays the role of providing the resources and
opportunities to organization for its existence, and the business organization
in turn, offers its goods and services to the people living in the environment
for survival and enlightenment (Ajala, 2005). This is also in line with the
views of Adi (2006) that the most important sole influence on organizational
policy and strategy at any point in its development is the environment, both
within and outside the organization. Akanji (2003) was of the opinion that the
more complex, turbulent and dynamic an environment becomes, the greater the
impact on human attitudes, business, organizational structure, market and
process as well as facilities, therefore there is need for all organizations to
direct their attention to the environment when formulating their strategic
management policies in order to facilitate their survival, growth and profit
motives. Previous
studies justified why small businesses remain the engine of growth in an
economy like Nigeria (Okon & Edet, 2016).
Furthermore, entry
to markets is relatively easy but survival it is not to some firms (Geroski,
1995). Much of the work has argued that productive and efficient firms will
survive and inefficient firms will not (Cefis & Marsili, 2006; Shiferaw,
2009). Literature have identify a set of factors that have impacted on firms’
survive. In relation to these factors, some authors focus on individual level
such as human capital (Kocaket al.,
2010; Coleman, et al., 2013), another
works focuses on firm level factors as firm age, size, RandD activities,
innovation activities, legal structure, cooperation partners among others
(Wagner and Cockburn, 2010; Cefis and Marsili, 2012; Gemaret al., 2016).
Others
studies center their works on location level, market level and industry level
factors (Helmers and Rogers, 2010; Renski 2011; Ejermo and Xiao, 201). Finally,
some focus on environmental level such as the unemployment rate and inflation
rates (Box, 2008). Regarding these factors, Esteve-Perez and Manez-Castillejo
(2008) conclude that large and conducting R and D firms as well as companies
carrying out advertising endure significantly better survival chances than
their counterparts. On the other hand, Segarra and Callejon (2002) conclude
that if the firm continues making R and D but shifts from a
medium-technological intensity industry to a high or low technological one, its
survival chances dramatically shrink. In the recently literature Ejermo and
Xiao (2014) show that NTBFs (New technology base firm) have higher survival
likelihood than other entrepreneurial firms but during recessions economic
being active in new technologies is particularly risky for these small firms.
Also, others studies conclude that new companies that are innovative are less
likely to exit the market in the early years of life (Geroski, 1995; Caves,
1998). In addition, others research has confirmed that patents are positively
related to survival and that those companies that have a larger number of
patents have lower risk of exiting the market (Helmer & Rogers, 2010).
Similarly, Cefis and Marsili (2006) find that after controlling for age and
size, innovative firms are more likely to survive than non- innovative firms.
However, there are also works that claim that innovation cannot have any effect
or adversely affect the firm survival. These works argue that this effect
occurs mainly when the firm develops innovations that require a greater amount
of economic and technological resources for development and implementation
(Jensen et al, 2008; Buddelmeyeret al., 2010).
Therefore,
the works that support a direct relationship between business survival determinants
and organizational performance are not in abundant, there is no literature
unanimity on the relationship between business survival determinants and
organizational performance and various studies indicate the need for further
study this relationship (Artzet al.,
2010; Buddelmeyeret al, 2010; Børing,
2015; Dattaet al., 2015). As a
consequence, there is a need to investigate deeper the effect of business
survival determinants on Organizational performance.
1.2 STATEMENT
OF THE PROBLEM
Businesses
remain the engine of growth in an economy like Nigeria (OkonandEdet, 2016). SMEDAN
reported that 80% of growing business owners in Nigeria do not survive their
first 5 years in business (AgwuandEmeti, 2014). The specific business problem
was that some Nigerian business owners lack strategies to survive their first 5
years of business activities. Also, organizations have to be successful in their businesses in
order to survive in competitive business environments in the 21st century (Koota,
2003). Unfortunately, an undesirable business performance result is one of the
main problems affecting many industries everywhere, and mostly developing
countries (Gyadu-Asiedu, 2009), leading to reported high incidence of business
failure (Grosskopf, 2005).
Most organization do not grow beyond the
survival stage (Olawale & Garwe, 2010; Chimucheka & Mandipaka, 2014).
This problem is echoed by Estrin and Mickiewicz (2011). Martin (2013) adds that
there are still many challenges facing business growth for organization which
include expansion, management and business practices. Furthermore, Roper and
Hart (2013) maintain that among organization high growth is often episodic and
not sustained. According to Dzansi (2016), businesses, on an individual basis,
have not been contributing as much as would be liked because they do not grow
in terms of production or employment capacity. However, Dzansi study did not
provide broad details with regard to the various determinants contributing to
the growth and success of organization. Failure of many of organization in
Nigeria rate is due to the fact that these organization are unable to overcome
the primary obstacle of access to funding, which translates into an inability
to attain the necessary physical, human and consulting resources. A study
conducted in KwaZulu-Natal by Clover and Darroch (2004) identified eight
dimensions of constraint namely: a lack of access to services; funding
constraints at start–up; lack of management capacity in the enterprise; access
to tender contracts; compliance; compliance costs associated with VAT and
labour legislation; liquidity stress; lack of collateral; and lack of
institutional support.
According to Mason and Lekhanya (2014) many
organizations are faced with internal and external challenges; these include
poor infrastructure, lack of human capital, lack of financial support, poor
technology and communication infrastructure, bad roads and transport, lack of
business networks and marketing strategies. This sentiment was echoed by SEDA
(2016) stating that the organization landscape is challenged by access to
finance and markets, poor infrastructure, labour law, crime, skill shortages
and inefficient bureaucracy. These problems are caused by lack of knowledge and
understanding of the determinants that affect the growth and survival of the
organization.
In addition, the study conducted by Lekhanya
(2010) indicates that a lack of use of marketing tools due to the lack of
knowledge and resources such as human capital and financial support contributed
negatively to their expansion and growth. Several studies did not provide the understanding
of knowledge on the survival determinants of organization in Nigeria. Furthermore,
lack of understanding of these determinants, is the main problem that this
study is intending to investigate and provide significant tests that impact on
survival and growth of organization. Therefore, it is important to offer a
clear understanding and broad knowledge of various business survival
determinants of organization. This study will provide a steep curve of
understanding on determinants affecting survival and growth of organization which
policy-makers and all stakeholders can learn from.
1.3 OBJECTIVES
OF THE STUDY
The main objective of this study is to
examine the effect of business survival
determinants on Organizational performance in Total Exploration
and Production of Ocean Oil in Nigeria Plc, Nigeria. The specific
objectives of the study are to;
i.
determine the effect of service determinants on Total Exploration and
Production of Ocean Oil in Nigeria Plc performance.
ii.
ascertain the effect of quality and cost on Total Exploration and
Production of Ocean Oil in Nigeria Plc effectiveness
iii.
determine the effect of institutional and socio - cultural environments
on business survival of Total Exploration and Production of Ocean Oil in Nigeria
Plc
iv.
establish the effect financial and infrastructural factors have on
business survival of Total Exploration and Production of Ocean Oil in Nigeria Plc
v.
assess the challenges confronting business survival of Total Exploration
and Production of Ocean Oil in Nigeria Plc
1.4 RESEARCH
QUESTIONS
i.
What is the effect of service determinants on Total Exploration and
Production of Ocean Oil in Nigeria Plc performance?
ii.
What is the effect of quality and cost on Total Exploration and
Production of Ocean Oil in Nigeria Plc effectiveness?
iii.
What is the effect of institutional and socio - cultural environments on
business survival of Total Exploration and Production of Ocean Oil in Nigeria
Plc.
iv.
What is the effect financial and infrastructural factors have on
business survival of Total Exploration and Production of Ocean Oil in Nigeria
Plc.
v.
What are challenges confronting business survival of Total Exploration
and Production of Ocean Oil in Nigeria Plc
1.5
RESEARCH HYPOTHESES
HO1: Business service determinants have no significant effect on Total Exploration
and Production of Ocean Oil in Nigeria Plc performance.
HO2: Quality and cost on Total Exploration and Production of Ocean Oil
in Nigeria Plc has no significant effect on effectiveness
HO3: Institutional and socio - cultural environments have no
significant influence on business survival of Total Exploration and Production
of Ocean Oil in Nigeria Plc
HO4: Financial and infrastructural factors have no significant effect on
business survival of Total Exploration and Production of Ocean Oil in Nigeria
Plc
HO5: Funding
constraints and compliance costs associated are not the challenges confronting
business survival of Total Exploration and Production of Ocean Oil in Nigeria
Plc.
1.6 SIGNIFICANCE OF THE STUDY
Businesses Owners
This
research study is of potential value to businesses because start up business owners
could explore strategies that contributed to the survival of business beyond 5
years. When business owners survive, there was reduction in market failures and
insecurity, thus increasing the potential for business profitability and
growth. Owners
of such businesses can search for answers to their questions in this study and
understand many issues that helped them to maintain and develop their business
successfully.
Customers and Public
This study does not only have academic and
educational potential, but can also impact on the actual economic life of the general
public in the countries; supporting their countries in an economic and social
manner.
Government
Ultimately, it is hoped that the results of
studies of this nature contributed to the assurance of standards of quality, in
the development and support network for business, on the part of government and
other external funders.
Scholars
Scholars gained knowledge
on business survival determinants on
Organizational performance. The finding of this study also helps scholars to
develop various theories and better understanding of the effect of business survival determinants on Organizational performance.
1.7 SCOPE
OF THE STUDY
The unit scope of the study
involved the staff of Total Exploration and Production of Ocean Oil in Nigeria
Plc, Nigeria.
The content scope of the
study examined the effect of business survival determinants on
Organizational performance in Total Exploration and Production of Ocean Oil in Nigeria
Plc, Nigeria. The study attempted to determine the effect of service
determinants on Total Exploration and Production of Ocean Oil in Nigeria Plc performance,
ascertain the effect of quality and cost on Total Exploration and Production of
Ocean Oil in Nigeria Plc effectiveness, determine the effect of institutional
and socio - cultural environments on business survival Total Exploration and
Production of Ocean Oil in Nigeria Plc, establish the effect financial and
infrastructural factors have on business survival of Total Exploration and Production of Ocean Oil
in Nigeria Plc and assess the challenges confronting business survival of Total
Exploration and Production of Ocean Oil in Nigeria Plc.
Geographical location of Total Exploration
and Production of Ocean Oil in Nigeria Plc located in Mfamosing, Akampka Local
Government Area of Cross River State.
1.8 LIMITATIONS OF
THE STUDY
Many factors were
encountered in the course of this work; without our ability to achieve a
desired result some of which include inadequate resourceful materials, which
was a major concern to the essence of this work. The dearth of required methodology
to adopt and limited access to literature, some journals and publications which
would have been of immense help to this work were scarcely available.
1.9 BRIEF
HISTORY OF THE ORGANIZATION UNDER THE STUDY
Total Exploration
and Production of Ocean Oil in Nigeria
TOTAL as a group is
active in the whole value chain of oil and gas: upstream, midstream and
downstream. In line with our Committed
to Better Energy ambition, Total downstream launched the first
solar-powered service station in West Africa, Total service station, Onigbagbo
on June 12, 2014. The construction of this service station is part of efforts
towards providing energy solutions that are efficient and environmentally
friendly.
The company has been serving the
Nigerian hydrocarbons industry for more than half a century, in partnership
with the Nigerian Government and in different equity associations with other
private companies.
The Upstream activities of
Total in Nigeria
Total E&P
Nigeria Limited (“TEPNG”), an affiliate of TOTAL S.A., has operated in the
upstream sector of the Nigerian hydrocarbon industry for more than 50 years and
has added over 3 billion barrels of oil equivalent to Nigeria’s production to
date.
Incorporated
in Nigeria in 1962, TEPNG has maintained strong and steadfast partnerships with
the Nigerian Government, the Nigerian National Petroleum Corporation (NNPC) and
several indigenous companies, in developing the country’s hydrocarbon industry.
TEPNG operates and holds a 40%
interest in the NNPC/TEPNG Joint Venture, producing oil and natural gas from
several onshore and shallow water concessions. Another Total affiliate, Total
Upstream Nigeria Limited (TUPNI), operates the Akpo field in OML 130 deepwater
lease and is currently developing the Egina field, expected to come on stream
in 2018 with a capacity of 200,000 barrels per day.
In addition, TEPNG has non-operated
interests in the SPDC-operated joint venture (10%), the Bonga field (12.5%) and
the Usan field (20%). Total also has a 15% interest in Nigeria LNG, which
currently operates 6 LNG liquefaction trains on Bonny Island.
TEPNG is committed to working closely
with its host communities and is supporting many projects in the areas of
health, education, infrastructure and economic development, through its
sustainable development and community relations programmes.
TEPNG delivers
world class energy solutions, adds economic value to the country, and promotes
best practices in safety and environmental protection, business ethics and
corporate social responsibility. With staff drawn from many nationalities and
cultures working together, TEPNG is proud of its diversity and contributions to
the socio-economic development of Nigeria.
The Downstream activities of
Total in Nigeria
The downstream activities are managed
by Total Nigeria Plc, the leader in the downstream sector of the Nigerian oil
and gas industry, which has an extensive distribution network of over 550
service stations nationwide and a wide range of top quality energy products and
services.
Total Service Stations: the “one-stop-centres”
To satisfy the evolving needs of its
customers, Total developed a “one-stop-centre” strategy whereby a variety of
customer needs are met in one place, TOTAL service stations. Therefore, in
addition to receiving premium care from service assistants, customers could
purchase petroleum products, gas, lubricants, car-car products, insecticides,
conveniently at our Café Bonjour shops, and receive premium car maintenance and
care services from our Auto Express and Auto Clean Deluxe Services. Meanwhile,
corporate customer demand for bulk products are met through our Vendor
Management Service and Equipment/Technical Assistance service.
Oando PLC
Oando PLC is an African
indigenous energy company operating in the upstream, midstream and
downstream.With a primary listing on the Nigerian Stock Exchange, Oando is the
first African company to have a cross-border inward listing on the Johannesburg
Stock Exchange.In 2014, it concluded the acquisition of ConocoPhillips'
Nigerian business through its upstream subsidiary, Oando Energy Resources,
making it the country's largest indigenous oil and gas producer at the time.
In July 2016, Oando entered into a tri-partite
agreement with the Vitol Group, an independent trader of energy commodities and
Helios Investment Partner, an Africa-focused private investment firm to form
OVH (formerly known as Oando Downstream). The new company, (with its name
formed from the initials of Oando, Vitol Group and Helios) is one of Nigeria's
biggest suppliers and distributors of refined petroleum products.
In September 2016, Oando announced the
execution of a definitive agreement with a vehicle owned by funds advised by
Helios Investment Partners LLP ("Helios"), a premier Africa-focused
private investment firm, to acquire 49% of the voting rights in Oando's
midstream business subsidiary, Oando Gas and Power Limited.Oando is Nigeria's
largest indigenous oil and gas company with a production output of 43,000
boepd, enterprise value of N520 billion and market capitalisation value of
N115.1 billion.
Oando's earliest roots can be traced
to the formation of Esso Africa in 1956. Esso Africa was a petroleum marketing company, a subsidiary of the Exxon Corporation of USA. To increase availability of petroleum products in the
hinterland,[6] in 1976 the Nigerian government
purchased a controlling stake in the company and rebranded the
company as Unipetrol Nigeria. On 1 March 1991, Unipetrol became a Public Limited
company. Later on in the same year, the Nigerian government sold 60% equity to
the Nigerian public in an Initial
Public Offering. By
February 1992, Unipetrol was listed on the Nigerian Stock Exchange.
In 1990, Benedict Peters became the
co-founder of Ocean and Oil Plc, known today as Oando.
In 1999, Unipetrol acquired a 40%
stake in Gaslink Nigeria Limited, a gas utility company. The acquisition was
motivated by a desire to utilize its exclusive gas sale and purchase agreement with the Nigerian gas company. In 2001, the company
increased its stake to 51 per cent. So far, Gaslink has developed 250 km
of gas pipeline infrastructure.
In 2000, Ocean and Oil, a private investment company led by Nigerian entrepreneurs AdewaleTinubu and OmamofeBoyo acquired
a 30% controlling interest in Unipetrol Plc. In 2001, Ocean and Oil increased
its stake in Unipetrol to 42% via an irredeemable convertible loan stock issue.
In 2002, Ocean and Oil led Unipetrol's
bid for a 60% stake of Agip Nigeria Plc, a rival petroleum marketing firm, owned by AgipPetroli BV, an Italian-based oil company. The merged company was named
Oando PLC in 2003, making the company the largest downstream petroleum
marketing company in Nigeria.
In 2005, Oando Energy Services was
incorporated as an integrated Oilfield Services company to achieve the group's
objectives in the upstream services industry.
In 2007, Oando Energy services
acquired two oil drilling rigs in Nigeria's Niger Delta. In 2008, the company emerged
Nigeria's first indigenous oil company with interests in producing deep water
assets through the acquisition of equity in two oil blocks. By
2009, the company had acquired 5 swamp rigs and
in 2010, the company launched its first Independent Power Plant for the Lagos
Water Corporation.
The project involved the construction of a 12.5MW power plant to provide uninterrupted power supply to the Lagos Water Corporation.
In 2011, Oando Gas and Power
commissioned 128 km EHGC Pipeline, the pipeline was built under a joint
venture arrangement with the Nigerian Gas Company (NGC), a subsidiary of
the Nigerian National Petroleum Corporation (NNPC). The gas infrastructure
has the capacity to deliver up to 100 million standard cubic feet per day
(mmscf/d) of natural gas and will deliver an initial 22mmscf/d of gas to its
maiden customer, United Cement Company (UNICEM), to fuel its new 2.5million
metric tonnes per annum cement plant, located in Mfamosing, Akampka Local
Government Area of Cross River State.
In 2012, Oando Exploration and
Production Limited ("OEPL") signed a farm-in agreement with Network
Exploration & Production Nigeria Limited ("NEPN") for the
acquisition of 40% participating interest in the Qua Iboe field (OML 13)
subject to the consent of the Minister of Petroleum.
In 2013, Oando Plc succeeded in
raising over N55.2 billion from the capital markets as its Rights Issue
recorded 101 per cent subscription. The company issued 4.548 billion shares to
existing shareholders at N12 per share between December 2012 and February 2013
with the intention of raising N54.6 billion. Oando Gas and Power commissioned
10.4 MW Alausa Independent Power Plant to provide electricity to the Lagos
State Secretariat Complex. Following the decommissioning of OES Professionalism
in 2013, OES currently has a fleet of 4 rigs; OES Teamwork, OES Respect, OES
Integrity and OES Passion.
In 2014, Oando divested the
128 km Eastern Horizon Gas Company (EHGC) franchise in a $250 Million
transaction with Seven Energy.
In 2014, Oando Energy Resources
("OER") listed on the TSX an affiliate company of Oando PLC entered
into agreements with ConocoPhillips ("COP") to acquire its entire business
interests in Nigeria for a total cash consideration of ~ $1.5 Billion.
In June 2015, Oando entered into an
agreement with HV Investments II B.V., ("HVI"), a joint venture owned
by a fund advised by Helios Investment Partners ("Helios") and The
Vitol Group ("Vitol"), for a cash investment of US$461 million in
Oando'sDownstream business.[15]
In 2016, Oando PLC completes strategic
US$115.8 million gas and power agreement with Helios. Oando PLC completes sale
of AkuteIPP.
In April 2018, the Securities and Exchange Commission (Nigeria) gave the directive for Oando
PLC's shares to resume trading on the Nigerian
Stock Exchange after
placing the company's shares on suspension in October 2017 in order to execute
a forensic audit.
On May 31, 2019, the Securities and Exchange Commission (Nigeria) issued a "Press Release on
Investigation of Oando Plc" notifying the public of the conclusion of the
commission's investigations of allegations against Oando. The Commission
ordered the resignation of board members implicated and barred "...the
Group Chief Executive Officer (GCEO) and the Deputy Group Chief Executive
Officer (DGCEO) of Oando Plc from being directors of public companies for a period
of five (5) years".
On Monday June 3, 2019 the Federal
High Court of Lagos under presiding Judge C M A Olatoregun granted Oando PLC's
Group Chief Executive, AdewaleTinubu, and Deputy Group Chief Executive,
OmamofeBoyo, an injunction restraining the Securities and Exchange Commission
from executing sanctions, pending the hearing and determination of the
applicant's motion for interlocutory injunction.
1.10 Operational Definition of Terms
Business Survival:
Survival mode means cutting costs, laying off employees, tightening profit
margins and saving cash, in stark contrast to growth mode, during which a
company reinvests profits, expands operations and brainstorms growth strategies
with long-term payoffs
Service Determinants
is perceived by the service provider and the consumer,
namely, reliability, responsiveness, competence, access, courtesy,
communication, credibility, security, understanding/ knowing the customer, and
tangibility to formulate a service quality framework.
Quality costs are the
costs associated with preventing, detecting, and remediating product issues
related to quality.
Institutional and socio-cultural is a shared beliefs, values, and
practices social institutions: mechanisms or patterns of social order
focused on meeting social needs, such as government, economy, education,
family, healthcare, and religion society.
Financial Factor:
It is a score card on the financial performance of your business that
reflects when sales are made and when expenses are incurred.
Infrastructural Factors:
the basic physical and organizational structures and facilities (e.g.
buildings, roads, power supplies) needed for the operation of a society or
enterprise.
Business
Environment are
marketing terms that refer to factors and forces that affect a firm's ability
to build and maintain successful customer relationships.
Organizational Performance:
Organizations
performance constitutes both financial and non-financial indicators which offer
information on the degree of achievement of objectives and results.
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