Investigation into the current project risk management practices within the Libyan oil and gas industry

The continued increase in the world’s population means increasing global energy demands. According to the best estimates available, hydrocarbons will be the main contributor to meet these energy needs. However, oil and gas projects pose significant risks, as they are large, complex and involve a considerable number of stakeholders and technologically difficult. The literature shows that many projects in the industry fail as a result of improper risk management practices. The literature also shows that although some scholars doubt the effectiveness of these practices, according to others, a positive relationship exists between applying these practices and project success. This research focuses on Libya, an important player in fulfilling the world’s energy demands, where the oil and gas industry is crucial to the national economy. Given the conditions existing in Libya, appropriate project risk management for the oil and gas industry needs is important. The aim of this research is to investigate the current project risk management practices in the oil and gas industry in Libya. This research follows a single case study approach. The data collection method adopted for this study was qualitative. Thirteen semi-structured interviews with top managers, project engineers and advisors were undertaken to achieve the aim of the study. Documents were also reviewed to support the findings from the interviews. Results show that awareness of the concept of project risk management is still very low in Libya and there is a lack of project management culture and risk management in particular. This research also demonstrates that although these practices are already being applied to some extent, this relies on the prior knowledge and experience of specific individuals, rather than on a systematic, documented procedure. The lack of financial resources and the shortage of experienced and qualified personnel due to the country’s current situation and as well as a lack of clear organisational vision within the oil and gas industry in Libya, all limit the implementation of effective project risk management. However, results also show that even though there is no written procedure for project risk management practices within the Libyan oil and gas industry, participants believe that applying these practices can increase overall project performance. This research contributes to theory and practice by implementing set of recommendations for developing an effective project risk management practices within the Libyan oil and gas industry. The researcher concludes that project risk management practices contributes to project success within the Libyan oil and gas industry