Strategic Value Analysis of Nigeria’s Refinery sector

Abstract

Strategic Value Analysis of Nigeria’s Refinery sector

¹Chinedum Onyemechi

Reader

Dept of Maritime Management Technology

Federal University of Technology Owerri,

Nigeria

Email: c_onyemechi@yahoo.com

² Abiodun Sule

Federal College of Fisheries and Marine Technology

Victoria Island, Lagos

Email: phasu2@gmail.com

Chinemerem Igboanusi

Dept of Transport Management Technology

Federal  University of Technology Owerri, Nigeria

Email: c.igbonusi@yahoo.com

Abstract

• The work applied digital competitive strategies applied to countries like the United States oil and gas sector to forge a pathway for Nigeria’s Petroleum sector. An application of Strategic Value Analysis(SVA) was done on the Petroleum value chain with a view to define the current behavior of the market. The following four basic questions of SVA analysis were applied in the course of the study: 1. Are there new or emerging players in my industry (within any portion of the value chain) that may be more successful than existing players? 2. Are these companies positioned in the value chain differently from current players? 3. Are new market prices emerging across segments of the value chain?4 Are these markets sufficiently deep to reflect arm's-length trading? If I used these market prices as transfer prices in my company, would it fundamentally change the way that my major operating units behave? .The outcome was a complete disintegration of the entire Petroleum sector of Nigeria’s oil and gas value chain. The emergence of new players was discovered and the patterns of these players completely different from the majors were emphasized as the future pathway for the sector. New strategies for the downstream sector were also recommended in the work.