Declining oil prices have caused a decrease in the level of activity in both major and emerging African oil and gas markets, including Nigeria, the continent’s biggest oil producer. Consequently, operators are facing challenging times, as reflected in the headcount reductions and other cost-cutting measures that are being implemented. Nevertheless, industry experts forecast exciting opportunities ahead, including the execution of megaprojects in the area of oil and gas infrastructure development, and inflows of foreign direct investment.
With this in mind, stakeholders throughout the oil and gas supply chain are taking the time to position themselves to compete in a revitalised market. With plans for the implementation of large scale projects forecast, operators realise that they cannot afford to bring average talent to the market if they want to remain competitive. According to an August 2015 report by PricewaterhouseCoopers (PwC) on the oil and gas industry in Africa, stakeholders rate people skills and skills retention as the second most likely factor to impact business in the industry over the next three years, ahead of instability and unstoppable political events.
The revolution in the industry underscores the need for the continual evolution of project managers and their role in enabling organisations to improve business results. While efficient management and the adoption of best practices are essential, they will not suffice in this emerging environment. In order to stand out and increase employability in a re-energised oil and gas market, project managers need to improve not only their general management skills, but also their specific industry skills. In addition to being able to handle tasks within the traditional sphere of planning, procurement and execution, they must be knowledgeable individuals who can handle the complexities of each project in today’s global business environment.
For example, Nigeria’s oil and gas sector today is characterised by joint venture agreements between the state-owned oil company, the Nigerian National Petroleum Corporation (NNPC) and seven international oil companies (IOCs), six of which are foreign-owned. In partnership with the NNPC, these six multinationals (Shell, Mobil, Chevron, Agip, Elf and Texaco) are responsible for the production of about 95% of Nigeria’s crude oil, the country’s biggest source of foreign earnings.
Thanks to globalisation, today’s project teams are more diverse in terms of both nationality and ethnicity. Accomplished project managers need to be sensitive to the effect of cultural differences on every project, and not merely have the skills to interact in a global business environment but also be able to understand the issues that affect multicultural teams. This goes beyond knowing the differences in greeting styles or how to show respect; it encompasses how to recognise cultural differences and nuances without stereotyping nationalities. It involves the ability to observe the culture of an individual or group, and to take the time to understand how this is likely to affect reactions to situations that may arise during a project’s life cycle. Having these skills will enable project managers to avoid misunderstandings and miscommunication regarding a project’s purpose, and difficulties in implementation.
Managing projects with teams spanning different cultures, nationalities and time zones can be challenging. While some project managers respond well in such situations, all professionals can derive immense benefits from continuing to develop the skills and knowledge needed to be an asset to their organisation and project. The University of Roehampton, London Online’s MSc in Project Management can help project managers build the skills and competencies to succeed in this culturally diverse and fast-moving field of work. The online programme encourages critical thinking that helps project managers build a more holistic understanding of the issues that affect the sector.
In addition, this Masters degree is designed to make project managers more employable, because they are more likely to be considered for bids, and can demonstrate that they understand international best practice to run projects inside and outside their local environment.
Marketability is important in today’s interconnected world, because international companies operating in Nigeria’s oil and gas sector also tend to have strong footprints in other oil-producing regions across the world. As oil prices begin to rise and activities ramp up in the industry, individuals who have invested in developing their skills and knowledge towards creating successful project outcomes stand a better chance of being involved in the exciting projects that are on the horizon.
Peter Atorough is a faculty member, experienced lecturer, consultant and business coach specialising in project management, supply chain and operations management. He is also the author of several research articles focusing on the interface between consumer behaviour, marketing and operations
