Corruption as a political risk factor for investors in the oil and gas industry, with specific emphasis on Nigeria : identification, analysis and measurement

[摘要] ENGLISH ABSTRACT: The central research question of this study concerns how corruption as a political riskfactor should be measured in order to provide an accurate assessment of the risk factorwithin the oil and gas industry. The aim is to answer this question with the aid and supportof two sub-questions that have been identified as crucial in pursuing this research. Thefirst sub-question conceptualizes corruption as a political risk factor specifically within theoil and gas industry. The second sub-question addresses the oil and gas industry-specificindicators of corruption as a political risk factor. The research embarks upon sevenindustry-specific indicators, by isolating the relevant national political structural andinstitutional framework, which has proved essential in identifying the level of corruption asa risk to the oil and gas investor. The indicators are regarded as the most salient variablesthat can measure the level of corruption as a political risk in a realistic and practicalapproach. The indicators are subsequently systemised into a matrix that is constructedwith the aim of using it as a general measurement tool for oil and gas investors. The studyargues that this measurement tool can be of use to the oil and gas investor as itcontributes to businesses recognition and anticipation of corruption. The matrix isfurthermore applied to the oil and gas industry in Nigeria, in an attempt to test the matrix,and in order to establish how and to what level corruption constitutes as a political riskfactor for the oil and gas industry in this country. The result of the indicators demonstratesthat the political risk of encountering corruption for the oil and gas investor in Nigeria is of ahigh level. This study provides a valid basis of constituting how corruption manifests as arisk for the oil and gas investor. Furthermore, the applicability of the matrix provides apractical utility and constructive assessment. This thesis provides a firm foundation forfuture research in this field.

[发布机构] Stellenbosch University