Managing Organisational Change for Low-Carbon Transition in National Oil Companies: Evidence from Nigerian National Petroleum Company Limited (NNPCL)
This study utilizes a mixed-methods case study of the Nigerian National Petroleum Company Limited to demonstrate that while leadership commitment and policy support exist, successful low-carbon transition in resource-dependent National Oil Companies is currently hindered by technical, financial, and cultural barriers, necessitating an integrated change management framework to align organizational readiness with decarbonisation goals.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
Imagine the world's energy system as a massive, ancient ship sailing across an ocean. For over a century, this ship has run on a very specific, powerful fuel: oil. It's the engine that keeps the ship moving, but burning it creates a thick, dark smoke that is warming the planet. Now, the crew and the passengers have realized they need to switch to a cleaner, wind-powered engine to keep the ship sailing without choking the sky. This is the "energy transition." But here's the tricky part: the ship isn't just a machine; it's a giant organization filled with thousands of people who have spent their whole lives learning how to run the oil engine. They know the pipes, the valves, and the rhythms of the old fuel better than anyone.
Changing a ship like this isn't just about swapping out the engine; it's about changing the crew's mindset, their training, and the way the ship is run. This is where "organizational change" comes in. Think of it as the art of convincing a whole team to stop doing what they've always done and start learning a brand-new way of working, all while the ship is still moving. Scientists and business experts study this to figure out why some companies make the switch smoothly while others get stuck, confused, or just keep burning the old fuel because it feels too risky to stop. The big question is: How do you get a giant, old-school company to successfully become a green, modern one without falling apart?
This paper dives deep into one specific ship: the Nigerian National Petroleum Company Limited (NNPCL). It's a massive state-owned company in Nigeria, a country that relies heavily on oil for its money. The researchers wanted to see if this company was truly ready to switch from oil to cleaner energy. They didn't just look at the blueprints or the laws; they talked to the people on board. They surveyed 200 employees, from top bosses to the workers on the ground, and held group discussions with senior leaders to get the full picture.
The story the paper tells is a mix of good news and some serious growing pains. First, the good news: everyone on the ship knows the change is coming. The "awareness" score was high, and the captains (the top leadership) are very committed to the new direction. They have even started building new "wind turbines" (renewable energy projects) and have set up a special team called NNPC New Energy Limited to handle the switch. The paper suggests that the leadership is definitely on board and that the company has started the journey.
However, the journey is hitting some rough waves. While the captains are ready, the ship is struggling with the "how-to." The researchers found that the company's "financial readiness" (having enough money for the new engine) and "technical capability" (having workers with the right skills for wind and solar) are the weakest links. The scores for these were the lowest, sitting at 55.2% and 62.0% respectively. The paper argues that having a plan isn't enough; you need the cash and the skilled crew to actually build it.
The study also points out that the company is stuck in "structural inertia." Imagine a giant, heavy ship that has been sailing in one direction for decades; it's hard to turn it around quickly. The old ways of doing things, the deep-rooted habits of the workforce, and the uncertainty about new rules are slowing the ship down. Even though the new laws (like the Petroleum Industry Act of 2021) say the company should change, the paper suggests that laws alone can't force the change to happen. The crew needs training, the company needs more money, and the old habits need to be broken.
The researchers used a mix of math (surveying 200 people) and stories (listening to focus groups) to reach this conclusion. They found that while the company has a strong "strategic intent" (the desire to change), it lacks the "organizational capability" (the actual tools and skills) to make it happen right now. The paper doesn't say the company has failed; it says the transition is just starting and that the real work is about fixing these internal gaps.
In the end, the paper suggests that for NNPCL to succeed, it can't just buy new technology. It has to fix its internal engine. This means training workers in new skills, finding more money for green projects, and making sure that everyone, from the CEO to the newest employee, is working together to make the switch. The paper concludes that the transition is possible, but it requires a massive effort to change the company's culture and capabilities, not just its fuel source. It's a reminder that turning a giant ship around takes time, patience, and a lot of hard work from the whole crew.
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