Assessing the Impact of Project Risk Management Practices on the Performance of Offshore Petroleum Engineering Projects in Ghana

Abstract

Offshore petroleum engineering projects are characterised by high technical complexity, capital intensity, environmental sensitivity, and operational uncertainty. In Ghana, the rapid expansion of offshore petroleum activities has heightened the importance of effective project risk management practices to ensure successful project delivery. This study assessed the impact of project risk management practices on the performance of offshore petroleum engineering projects in Ghana. The study specifically examined the influence of risk identification, risk analysis, risk response planning, risk monitoring, and risk communication on project performance indicators, including cost, time, quality, safety, and environmental compliance.

A quantitative research design with a cross-sectional survey approach was adopted. Data were collected from 152 professionals involved in offshore petroleum engineering projects in Ghana using structured questionnaires. The data were analysed using descriptive statistics, Pearson correlation analysis, and multiple regression analysis. The findings revealed that project risk management practices are implemented at moderate to high levels in offshore petroleum projects in Ghana. Correlation results showed a positive and significant relationship between all risk management practices and project performance. Regression analysis indicated that risk management practices explain 61% of the variation in project performance, with risk response planning emerging as the most significant predictor.

The study concludes that effective project risk management practices significantly enhance the performance of offshore petroleum engineering projects in Ghana. The study recommends strengthening risk response planning, improving risk identification and analysis techniques, enhancing risk monitoring systems, and improving communication frameworks within offshore project environments. The findings contribute to both theory and practice by providing empirical evidence on the role of risk management in improving outcomes for offshore petroleum projects in developing-country contexts.