Effect Of Local Content And Security Issues On The Operational Efficiency Of Oil And Gas Organizations In Kenya

Purpose: The aim of the study is to analyze the effect of local content and security issues on operational efficiency of oil and gas organizations in Kenya. Methodology: The study adopted a descriptive research design whereby both quantitative and qualitative data were utilized. The target population comprised of 148 participants from 37 Oil and gas exploration companies selected for this study. Stratified, random and purposive sampling techniques was applied to sample out 108 respondents calculated as sample size from the target population. Questionnaire and interview schedules were used for data collection and subsequently analyzed to work out descriptive, inferential and regression analysis. Findings: The study concluded that there is a positive relationship between independent and dependent variables. In a hierarchical order, there exist a significantly positive correlation between independent variable issues of local content, security, community, and infrastructure to operations efficiency. The study concludes that for Kenyan situation, the contributions of independent variable are significantly different from other previous studies. Unique Contribution to Theory Practice and Policy: Given the diversity and level of dispersion of challenges and issues clustered under the independent variable on this study, entities interested in oil and gas exploration may be required to identify all intrinsic and extrinsic issues under which the independent variables fall, identify their risk, and conduct a costing. This will be key to success of improving the contributors to operational performance metrics and will enable the entities determine what causes inefficiencies and therefore stand a better chance of planning successful oil and gas exploration projects.