The Operational Performance of Oil and Gas Companies in Logistics Outsourcing Process in the Niger Delta Region

The study aimed at the Operational performance of the Oil and Gas Companies in Logistics Outsourcing Process in the Niger Delta Region. The study adopted a cross sectional research design; the population of interest for this study was drawn from oil and gas companies operating in Niger Delta; a total of fifty-one (51) oil and gas companies were identified. The data collected for this study was analyzed using descriptive statistics and SPSS analysis tools. The study revealed that, the failure of outsourcing firms to manage providers properly and a lack of understanding of the other party, insufficient sharing of business information among the parties with subsequent problems to provide an appropriate context for co-operation. The study conclude that the process employed by oil and gas companies in the Niger Delta in logistics outsourcing with logistics service providers were key in influencing performance of their operation positively. The study recommended that, just-in-time concept or approach, payment duration, welfare approach and sustainable communication channels should be included in measuring the performance of oil and gas companies in logistics outsourcing process. The study suggest the following parameters to be included in sourcing or selecting logistics service providers to ensure professionalism is taken care of; logistics services providers (firms) must have a professional certificate to back their nature of operations and Logistics service providers should show some level of professionalism, commitment, and improve quality delivery to enable major oil and gas companies to completely outsourced jobs to them since they currently practice partial outsourcing in the industry.