Import Terminals, Ports, and Offshore Support Logistics: Effects on Oil and Gas Project Efficiency in Africa

The effective logistics systems are at the center of successful oil and gas project Delivery but most projects in Africa are still being characterized by cost overruns, schedule overruns and operational disruptions. The problems are usually associated with the inefficiency of import terminals, port infrastructures and administration as well as offshore logistics support. This paper has looked at the impacts of import facilities, ports and offshore support logistics in efficiency of oil and gas projects in some regions of Africa of choice. Based on the theory of supply chain performance and the perspectives of systems efficiency, the study settled in using a quantitative research design based on census with 120 major stakeholders in the field of logistics and project in West, East, and Southern Africa being surveyed. Structured questionnaires were used to collect primary data which was supplemented by secondary sources of information in the industry and institutions.
The results indicated that there were high impacts of import terminal capacity, turnaround-time, storage adequacy, and regulatory efficiency on the cost performance of the project, schedule compliance, and continuity of works. It was also discovered that port infrastructure quality and cargo handling performance had a strong effect on logistics reliability and that governance and institutional coordination had a final determination of delay outcomes. Integration of offshore support logistics, especially vessel availability, offshore base capacity and onshore-offshore coordination, turned out to be key factors that defined efficiencies and continuities of operations. In all the purposes, the findings showed that inefficiencies at a single node of the logistics were replicated throughout the whole project system, which increased the risks and transactions costs.
The paper finds that the performance of oil and gas projects in Africa relies on the simultaneous functioning of terminals, ports, and offshore logistics and not on the autonomous investments in infrastructure. The implications on policy and industry include the fact that it would require coordinated infrastructure enhancements, simplified regulations, and greater integration of logistics throughout its supply chain. The research has an empirical contribution to the literature because it gives Africa-specific evidence, and it can also be useful to policymakers, port authorities, and operators in the oil and gas industry to enhance the success of projects.

Oil and gas logistics, import terminals, port infrastructure and governance, offshore support logistics, project efficiency, supply chain integration.

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