Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt

Ahmed Yousry Beltagy Ahmed Akal

doi:doi:10.11648/j.ijafrm.20160101.13

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Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt

Ahmed Yousry Beltagy Ahmed Akal

Published in International Journal of Accounting, Finance and Risk Management (Volume 1, Issue 1)

Received: 12 September 2016 Accepted: 1 November 2016 Published: 23 November 2016

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Abstract

Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects development is the financial risks. This paper addresses the issue of financial risks contributing to the delay of oil and gas projects in Egypt. Outlining a detailed literature review, 18 financial risks have been identified and grouped into 4 main categories—namely: late payment, financial market instability, fiscal mismanagement, and imperfect policies and project studies. The identified risks are tabulated in a questionnaire form which was sent to engineers specialized in construction of oil and gas projects in Egypt asking their contribution to specify the severity of impact and frequency of occurrence of the 18 identified risks. The results reveal that the top ranked risks according to the severity of impact and likelihood of occurrence are project materials monopoly by suppliers and delay in subcontractors/suppliers progress payment by the main contractor respectively. While, delay in subcontractors/suppliers progress payment by the main contractor, lack of costs following-up during the project execution by the construction parties, owner delay in freeing the main contractor financial payments, project materials monopoly by suppliers, and contractor handling too many projects at the same time are the most important financial risks contributing to the delay of oil and gas projects in Egypt.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 1, Issue 1)
DOI	10.11648/j.ijafrm.20160101.13
Page(s)	19-24
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Delay, Financial Risks, Oil and Gas Construction Projects, Egypt

References

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APA Style

Ahmed Yousry Beltagy Ahmed Akal. (2016). Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. International Journal of Accounting, Finance and Risk Management, 1(1), 19-24. https://doi.org/10.11648/j.ijafrm.20160101.13

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ACS Style

Ahmed Yousry Beltagy Ahmed Akal. Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. Int. J. Account. Finance Risk Manag. 2016, 1(1), 19-24. doi: 10.11648/j.ijafrm.20160101.13

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AMA Style

Ahmed Yousry Beltagy Ahmed Akal. Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. Int J Account Finance Risk Manag. 2016;1(1):19-24. doi: 10.11648/j.ijafrm.20160101.13

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@article{10.11648/j.ijafrm.20160101.13,
  author = {Ahmed Yousry Beltagy Ahmed Akal},
  title = {Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {1},
  number = {1},
  pages = {19-24},
  doi = {10.11648/j.ijafrm.20160101.13},
  url = {https://doi.org/10.11648/j.ijafrm.20160101.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20160101.13},
  abstract = {Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects development is the financial risks. This paper addresses the issue of financial risks contributing to the delay of oil and gas projects in Egypt. Outlining a detailed literature review, 18 financial risks have been identified and grouped into 4 main categories—namely: late payment, financial market instability, fiscal mismanagement, and imperfect policies and project studies. The identified risks are tabulated in a questionnaire form which was sent to engineers specialized in construction of oil and gas projects in Egypt asking their contribution to specify the severity of impact and frequency of occurrence of the 18 identified risks. The results reveal that the top ranked risks according to the severity of impact and likelihood of occurrence are project materials monopoly by suppliers and delay in subcontractors/suppliers progress payment by the main contractor respectively. While, delay in subcontractors/suppliers progress payment by the main contractor, lack of costs following-up during the project execution by the construction parties, owner delay in freeing the main contractor financial payments, project materials monopoly by suppliers, and contractor handling too many projects at the same time are the most important financial risks contributing to the delay of oil and gas projects in Egypt.},
 year = {2016}
}

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TY  - JOUR
T1  - Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt
AU  - Ahmed Yousry Beltagy Ahmed Akal
Y1  - 2016/11/23
PY  - 2016
N1  - https://doi.org/10.11648/j.ijafrm.20160101.13
DO  - 10.11648/j.ijafrm.20160101.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 19
EP  - 24
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20160101.13
AB  - Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects development is the financial risks. This paper addresses the issue of financial risks contributing to the delay of oil and gas projects in Egypt. Outlining a detailed literature review, 18 financial risks have been identified and grouped into 4 main categories—namely: late payment, financial market instability, fiscal mismanagement, and imperfect policies and project studies. The identified risks are tabulated in a questionnaire form which was sent to engineers specialized in construction of oil and gas projects in Egypt asking their contribution to specify the severity of impact and frequency of occurrence of the 18 identified risks. The results reveal that the top ranked risks according to the severity of impact and likelihood of occurrence are project materials monopoly by suppliers and delay in subcontractors/suppliers progress payment by the main contractor respectively. While, delay in subcontractors/suppliers progress payment by the main contractor, lack of costs following-up during the project execution by the construction parties, owner delay in freeing the main contractor financial payments, project materials monopoly by suppliers, and contractor handling too many projects at the same time are the most important financial risks contributing to the delay of oil and gas projects in Egypt.
VL  - 1
IS  - 1
ER  -

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Author Information

Ahmed Yousry Beltagy Ahmed Akal

Civil Engineering Department, Faculty of Engineering, Menoufia University, Shibeen El-Kom City, Egypt

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Plain Text BibTeX RIS

APA Style

Ahmed Yousry Beltagy Ahmed Akal. (2016). Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. International Journal of Accounting, Finance and Risk Management, 1(1), 19-24. https://doi.org/10.11648/j.ijafrm.20160101.13

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ACS Style

Ahmed Yousry Beltagy Ahmed Akal. Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. Int. J. Account. Finance Risk Manag. 2016, 1(1), 19-24. doi: 10.11648/j.ijafrm.20160101.13

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AMA Style

Ahmed Yousry Beltagy Ahmed Akal. Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt. Int J Account Finance Risk Manag. 2016;1(1):19-24. doi: 10.11648/j.ijafrm.20160101.13

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@article{10.11648/j.ijafrm.20160101.13,
  author = {Ahmed Yousry Beltagy Ahmed Akal},
  title = {Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {1},
  number = {1},
  pages = {19-24},
  doi = {10.11648/j.ijafrm.20160101.13},
  url = {https://doi.org/10.11648/j.ijafrm.20160101.13},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20160101.13},
  abstract = {Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects development is the financial risks. This paper addresses the issue of financial risks contributing to the delay of oil and gas projects in Egypt. Outlining a detailed literature review, 18 financial risks have been identified and grouped into 4 main categories—namely: late payment, financial market instability, fiscal mismanagement, and imperfect policies and project studies. The identified risks are tabulated in a questionnaire form which was sent to engineers specialized in construction of oil and gas projects in Egypt asking their contribution to specify the severity of impact and frequency of occurrence of the 18 identified risks. The results reveal that the top ranked risks according to the severity of impact and likelihood of occurrence are project materials monopoly by suppliers and delay in subcontractors/suppliers progress payment by the main contractor respectively. While, delay in subcontractors/suppliers progress payment by the main contractor, lack of costs following-up during the project execution by the construction parties, owner delay in freeing the main contractor financial payments, project materials monopoly by suppliers, and contractor handling too many projects at the same time are the most important financial risks contributing to the delay of oil and gas projects in Egypt.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Financial Risks Contributing to Delay of Oil and Gas Projects in Egypt
AU  - Ahmed Yousry Beltagy Ahmed Akal
Y1  - 2016/11/23
PY  - 2016
N1  - https://doi.org/10.11648/j.ijafrm.20160101.13
DO  - 10.11648/j.ijafrm.20160101.13
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 19
EP  - 24
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20160101.13
AB  - Delay is a universal phenomenon in construction industry; and oil and gas construction projects in Egypt are not an exception. Oil and gas projects have a long construction cycle, huge investments, and multitudinous risks which negatively affect these projects’ objectives. One of the main risks which have been identified to hinder the projects development is the financial risks. This paper addresses the issue of financial risks contributing to the delay of oil and gas projects in Egypt. Outlining a detailed literature review, 18 financial risks have been identified and grouped into 4 main categories—namely: late payment, financial market instability, fiscal mismanagement, and imperfect policies and project studies. The identified risks are tabulated in a questionnaire form which was sent to engineers specialized in construction of oil and gas projects in Egypt asking their contribution to specify the severity of impact and frequency of occurrence of the 18 identified risks. The results reveal that the top ranked risks according to the severity of impact and likelihood of occurrence are project materials monopoly by suppliers and delay in subcontractors/suppliers progress payment by the main contractor respectively. While, delay in subcontractors/suppliers progress payment by the main contractor, lack of costs following-up during the project execution by the construction parties, owner delay in freeing the main contractor financial payments, project materials monopoly by suppliers, and contractor handling too many projects at the same time are the most important financial risks contributing to the delay of oil and gas projects in Egypt.
VL  - 1
IS  - 1
ER  -

Copy | Download