Procurement in Oil and Gas Industry in Developing Countries
A Case of AGIP Nigeria
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This is a thesis about procurement process in the oil and gas industry in Nigeria with specific stress on AGIP Nigerian AGIP Energy and Natural Resource.” The report starts with an introduction to the country Nigeria itself. It develops with the research on the oil and gas sector in the country and then focuses on the AGIP and its operations. Thus the first section comprises the Introduction, the background of the problem the research objectives, literature review regarding the procurement process and the company AGIP. The second section is about the research methodology, the data analysis and presentation of…show more content… The Government is providing an investment friendly atmosphere for the oil & gas sector to attract local and foreign investors. As an end result of these monetary and organizational reforms, this segment has already appeared as one of the most attractive sectors for investment in the country. Among the main causes for the poor financial performance are economic mismanagement and dishonesty. In adding, the country's extreme dependence on petroleum trades (about 85 percent of the total) makes it susceptible to sharp swipes in the worldwide price of oil. The Nigerian economy is based on two major segments, agriculture and upstream oil business. Agriculture financial records for more than 36% (1998) of the GDP, for the most part composed of subsistence agriculturalist with only a minor number of profitable farms and domestic consumption. There is, though, a large export of cocoa. The upstream oil business financial records for just about 37% of the GDP and make available 80% of the Federal Government income. Manufacturing financial records for only 5% of GDP and displays the lowest growth rate of the financial sectors. As a final point, the casual sector plays a vital role in the Nigerian economy and available evidence suggest this sector accounts for 70% of all economic activities. (Nnpcgroup.com, 2010) Nigeria has a
