Royalty Interest Management Strategy, Cost Implications and Financial Performance of Oil and Gas Companies in Niger Delta

Abstract

The study examines royalty interest management strategy, cost implications and financial performance of oil and gas companies in Niger Delta with the purpose of finding out if denial, payment to selected community leaders and divide and rule relate to profitability. In carrying out the study, data was collected from 38 respondents through the issue of structured questionnaire and the data collected was analyzed adopting pearson correlation and regression analysis methods. From the analysis, we found that denial and divide and rule are not statistically significant in explaining the profitability of oil and gas companies and in the other hand, payment to the selected community leaders was statistically significant in explaining profitability. Based on the findings, we recommend among others that government should restore confidence to the peoples of the Niger Delta that they can be partners in progress.

Keywords: Royalty interest; Cost Implications, Denial, divide and rule