Nigerian Crude Oil And Gas

Nigerian Crude Oil and Gas Feasibility Studies & Research Services

We carry out local feasibility studies and research of business opportunities and investment opportunities for international companies in the Nigerian Crude Oil and Gas industry. Feasibility studies for multimillion or multi billion dollars projects.

Project location, Project investment costs, factors of production which include land, labor and capital, distribution and sales, export and import factors, risk factors, returns on investments, markets etc.

To order a feasibility study or research of sorts in the Nigerian crude oil and gas industry simply send an email to ceo@nigeriancrudeoilandgas.com

A feasibility study is an evaluation of a proposal designed to determine the difficulty in carrying out a designated task. Generally, a feasibility study precedes technical development and project implementation. In other words, a feasibility study is an evaluation or analysis of the potential impact of a proposed project.

Technology and system feasibility

The assessment is based on an outline design of system requirements in terms of Input, Processes, Output, Fields, Programs, and Procedures. This can be quantified in terms of volumes of data, trends, frequency of updating, etc. in order to estimate whether the new system will perform adequately or not. Technological feasibility is carried out to determine whether the company has the capability, in terms of software, hardware, personnel and expertise, to handle the completion of the project

Economic feasibility

Economic analysis is the most frequently used method for evaluating the effectiveness of a new system. More commonly known as cost/benefit analysis, the procedure is to determine the benefits and savings that are expected from a candidate system and compare them with costs. If benefits outweigh costs, then the decision is made to design and implement the system. An entrepreneur must accurately weigh the cost versus benefits before taking an action.

Cost-based study: It is important to identify cost and benefit factors, which can be categorized as follows:

1. Development costs;

2. Operating costs. This is an analysis of the costs to be incurred in the system and the benefits derivable out of the system.

Time-based study: This is an analysis of the time required to achieve a return on investments. The future value of a project is also a factor.

Legal feasibility:

Determines whether the proposed system conflicts with legal requirements, e.g. a data processing system must comply with the local Data Protection Acts.

Operational feasibility:

Operational feasibility is a measure of how well a proposed system solves the problems, and takes advantage of the opportunities identified during scope definition and how it satisfies the requirements identified in the requirements analysis phase of system development.

Schedule feasibility:

A project will fail if it takes too long to be completed before it is useful. Typically this means estimating how long the system will take to develop, and if it can be completed in a given time period using some methods like payback period. Schedule feasibility is a measure of how reasonable the project timetable is. Given our technical expertise, are the project deadlines reasonable? Some projects are initiated with specific deadlines. You need to determine whether the deadlines are mandatory or desirable.

Other feasibility factors

Market and real estate feasibility:

Market Feasibility Study typically involves testing geographic locations for a real estate development project, and usually involves parcels of real estate land. Developers often conduct market studies to determine the best location within a jurisdiction, and to test alternative land uses for given parcels.

Jurisdictions often require developers to complete feasibility studies before they will approve a permit application for retail, commercial, industrial, manufacturing, housing, office or mixed-use project. Market Feasibility takes into account the importance of the business in the selected area.

Resource feasibility:

This involves questions such as how much time is available to build the new system, when it can be built, whether it interferes with normal business operations, type and amount of resources required, dependencies, etc

Cultural feasibility:

In this stage, the project's alternatives are evaluated for their impact on the local and general culture. For example, environmental factors need to be considered and these factors are to be well known. Further an enterprise's own culture can clash with the results of the project.

Output:

The feasibility study outputs the feasibility study report, a report detailing the evaluation criteria, the study findings, and the recommendations.

SWOT analysis: is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.

The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies.

A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning, has been the subject of much research.

Strengths: characteristics of the business or team that give it an advantage over others in the industry.

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

Opportunities: external chances to make greater sales or profits in the environment.

Threats: external elements in the environment that could cause trouble for the business.

Identification of SWOTs are essential because subsequent steps in the process of planning for achievement of the selected objective may be derived from the SWOTs.

First, the decision makers have to determine whether the objective is attainable, given the SWOTs. If the objective is NOT attainable a different objective must be selected and the process repeated.

The SWOT analysis is often used in academia to highlight and identify strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas for development.

Matching and converting:

Another way of utilizing SWOT is matching and converting.

Matching is used to find competitive advantages by matching the strengths to opportunities.

Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities.

An example of conversion strategy is to find new markets.

If the threats or weaknesses cannot be converted a company should try to minimize or avoid them.

Evidence on the use of SWOT:

SWOT analysis may limit the strategies considered in the evaluation. J. Scott Armstrong notes that "people who use SWOT might conclude that they have done an adequate job of planning and ignore such sensible things as defining the firm's objectives or calculating ROI for alternate strategies." Findings from Menon et al. (1999) and Hill and Westbrook (1997) have shown that SWOT may harm performance. As an alternative to SWOT, Armstrong describes a 5-step approach alternative that leads to better corporate performance.

These criticisms are addressed to an old version of SWOT analysis that precedes the SWOT analysis described above under the heading "Strategic and Creative Use of SWOT Analysis." This old version did not require that SWOTs be derived from an agreed upon objective. Examples of SWOT analyses that do not state an objective can be "Human Resources" and "Marketing."

Internal and external factors:

The aim of any SWOT analysis is to identify the key internal and external factors that are important to achieving the objective. These come from within the company's unique value chain. SWOT analysis groups key pieces of information into two main categories:

Internal factors – The strengths and weaknesses internal to the organization.

External factors – The opportunities and threats presented by the external environment to the organization. - Use a PEST or PESTLE analysis to help identify factors.

The internal factors may be viewed as strengths or weaknesses depending upon their impact on the organization's objectives. What may represent strengths with respect to one objective may be weaknesses for another objective. The factors may include all of the 4P's; as well as personnel, finance, manufacturing capabilities, and so on.

The external factors may include macroeconomic matters, technological change, legislation, and socio-cultural changes, as well as changes in the marketplace or competitive position. The results are often presented in the form of a matrix.

SWOT analysis is just one method of categorization and has its own weaknesses. For example, it may tend to persuade companies to compile lists rather than think about what is actually important in achieving objectives. It also presents the resulting lists uncritically and without clear prioritization so that, for example, weak opportunities may appear to balance strong threats.

It is prudent not to eliminate too quickly any candidate SWOT entry. The importance of individual SWOTs will be revealed by the value of the strategies it generates. A SWOT item that produces valuable strategies is important. A SWOT item that generates no strategies is not important.

Use of SWOT analysis:

The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT analysis may be used in any decision-making situation when a desired end-state (objective) has been defined. Examples include: non-profit organizations, governmental units, and individuals.

SWOT analysis may also be used in pre-crisis planning and preventive crisis management. SWOT analysis may also be used in creating a recommendation during a viability study/survey.

SWOT - landscape analysis:

The SWOT-landscape systematically deploys the relationships between overall objective and underlying SWOT-factors and provides an interactive, query-able 3D landscape.
The SWOT-landscape grabs different managerial situations by visualizing and foreseeing the dynamic performance of comparable objects according to findings by Brendan Kitts, Leif Edvinsson and Tord Beding (2000).

Changes in relative performance are continually identified. Projects (or other units of measurements) that could be potential risk or opportunity objects are highlighted.
SWOT-landscape also indicates which underlying strength/weakness factors that have had or likely will have highest influence in the context of value in use (for ex. capital value fluctuations).

Corporate planning:

As part of the development of strategies and plans to enable the organization to achieve its objectives, then that organization will use a systematic/rigorous process known as corporate planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of business and environmental factors.

Set objectives – defining what the organization is going to do

Environmental scanning

Internal appraisals of the organization's SWOT, this needs to include an assessment of the present situation as well as a portfolio of products/services and an analysis of the product/service life cycle

Analysis of existing strategies, this should determine relevance from the results of an internal/external appraisal. This may include gap analysis which will look at environmental factors

Strategic Issues defined – key factors in the development of a corporate plan which needs to be addressed by the organization

Develop new/revised strategies – revised analysis of strategic issues may mean the objectives need to change

Establish critical success factors – the achievement of objectives and strategy implementation

Preparation of operational, resource, projects plans for strategy implementation

Monitoring results – mapping against plans, taking corrective action which may mean amending objectives/strategies.

Marketing:

Marketing management:

In many competitor analyses, marketers build detailed profiles of each competitor in the market, focusing especially on their relative competitive strengths and weaknesses using SWOT analysis. Marketing managers will examine each competitor's cost structure, sources of profits, resources and competencies, competitive positioning and product differentiation, degree of vertical integration, historical responses to industry developments, and other factors.

Marketing management often finds it necessary to invest in research to collect the data required to perform accurate marketing analysis. Accordingly, management often conducts market research (alternately marketing research) to obtain this information.

Marketers employ a variety of techniques to conduct market research, but some of the more common include:

Qualitative marketing research, such as focus groups
Quantitative marketing research, such as statistical surveys
Experimental techniques such as test markets
Observational techniques such as ethnographic (on-site) observation
Marketing managers may also design and oversee various environmental scanning and competitive intelligence processes to help identify trends and inform the company's marketing analysis.

Using SWOT to analyze the market position of a small management consultancy with specialism in HRM.

Strengths Weaknesses Opportunities Threats

Reputation in marketplace.
Shortage of consultants at operating level rather than partner level.
Well established position with a well defined market niche.
Large consultancies operating at a minor level
Expertise at partner level in HRM consultancy
Unable to deal with multi-disciplinary assignments because of size or lack of ability Identified market for consultancy in areas other than HRM
Other small consultancies looking to invade the marketplace

Mining Feasibility Studies:

A mining feasibility study is an evaluation of a proposed mining project to determine whether the mineral resource can be mined economically. There are three types of feasibility study used in mining, order of magnitude, preliminary feasibility and detailed feasibility.

Order of magnitude:

Order of magnitude feasibility studies (sometimes referred to as "scoping studies") are an initial financial appraisal of an indicated mineral resource. Depending on the size of the project an order of magnitude study may be carried out by a single individual. It will involve a preliminary mine plan, and are the basis for determining whether or not to proceed forward with an exploration program, and more detailed engineering work. Order of magnitude studies are developed copying plans and factoring known costs from existing projects completed elsewhere and are accurate to within 40-50%.

Preliminary feasibility:

Preliminary feasibility studies or "pre-feasibility studies" are more detailed than order of magnitude studies. A preliminary feasibility study is used in due diligence work, determining whether or not to proceed with a detailed feasibility study and as a "reality check" to determine areas within the project that require more attention. Preliminary feasibility studies are done by factoring known unit costs and by estimating gross dimensions or quantities once conceptual or preliminary engineering and mine design has been completed. Preliminary feasibility studies are completed by a small group of multi-disciplined technical individuals and have an accuracy within 20-30%.

Detailed feasibility:

Detailed feasibility studies are the most detailed and will determine definitively whether or not to proceed with the project. A detailed feasibility study will be the basis for capital appropriation, and will provide the budget figures for the project. Detailed feasibility studies require a significant amount of formal engineering work are accurate to within 10-15% and can cost between ½-1½% of the total estimated project cost.

A proof of concept or a proof of principle: is realization of a certain method or idea(s) to demonstrate its feasibility, or a demonstration in principle, whose purpose is to verify that some concept or theory is probably capable of being useful. A proof-of-concept may or may not be complete, and is usually small and incomplete.

A proof of concept of an idea is usually considered a milestone on the way to a fully functioning prototype.

In research and development:

In the field of applied research people working on a project or proposal will often undertake internal research initially, to verify that the core ideas are functional and feasible, before going further. This sometimes includes limited performance testing. This use of proof of concept helps establish viability, technical issues, and overall direction, as well as providing feedback for budgeting and other forms of commercial discussion and control. It is not related to a scientific proof.

In sales and business development:

In the field of business development and sales, a vendor may allow a prospect customer to trial the software product. This use of proof of concept helps establish viability, technical issues, and overall direction, as well as providing feedback for budgeting and other forms of internal decision making processes.

A proof of concept can refer to a partial solution that involves a relatively small number of users acting in business roles to establish whether the system satisfies some aspect of the requirements.

By contrast, the objective of a proof of technology is to determine the solution to some technical problem, such as how two systems might be integrated or that a certain throughput can be achieved with a given configuration. No business users need be involved in a proof of technology.

A pilot project refers to an initial roll out of a system into production, targeting a limited scope of the intended final solution. The scope may be limited by the number of users who can access the system, the business processes affected, the business partners involved, or other restrictions as appropriate to the domain. The purpose of a pilot project is to test, often in a production environment, whether the system is working as it was designed while limiting business exposure.

To order a feasibility study or research of sorts in the Nigerian crude oil and gas industry simply send an email to ceo@nigeriancrudeoilandgas.com

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