The Joint Venture Relationship Between Chevron Nigeria Limited And Nigerian National Petroleum Corporation

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2.0 RATIONALE This course work is an analysis of the Joint Venture relationship between Chevron Nigeria Limited (CNL) and the Nigerian National Petroleum Corporation (NNPC). There is an alignment between the strategic intent of CNL & that of NNPC; the JV relationship has experienced a barrage of contentious issues ranging from underhanded financial practices, breach of trust and agreements, and the pervasive inability of the NNPC to fulfill its own part of the cash calls in funding the venture. The CNL strategic intents are consistent with national goals which have been distilled into the principles of NNPC e.g. knowledge transfer. CNL, on the other hand, proposed at some point to net off the financial debts with crude oil but this was…show more content…
Increasing demand by the Nigerian people for visible contribution from the oil and gas sector to national economic growth 3. Increasing technological challenges associated with finding new oil / gas, particularly in difficult terrains e.g. deep water, including the challenge of developing the requisite skills and capabilities to support the required capacities 4. Huge funding challenges associated with rapid capacity development The strategic themes employed in this discourse are the following; 1. The Paradox of Profitability and Responsibility 2. The Paradox of Markets and Resources 3. The Paradox of Competition and Cooperation 4. The Paradox of Deliberateness and Emergence 5. The Paradox of Globalization and Localization 6. Organizational arrangements and structure This JV relationship is of strategic interest because CNL is Nigeria’s third largest producer of oil and a major investor (Chevron, 2015). 3.0 THE PARADOX OF PROFITABILITY AND RESPONSIBILITY The energy industry plays a critical role in the establishment of development through energy provision and significant revenue generation, which can help alleviate poverty and actualization of a number of human rights, as energy companies that value human rights have been shown to have positive relationships within their localities of operation, high safety and health performance, as well as minimized environmental impact from their operational activities Socially
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