Assessing risks in west Africa

Published on Wednesday 20 August 2008 21:54

AN OIL industry initiative, aimed at helping Scottish companies enter the potentially lucrative west African energy market, has forged a partnership with one of Britain's leading risk management companies amid heightened security fears in the region, writes Frank Urquhart.

The UK West Africa Action Group (UKWAAG) was set up ten years ago, under the auspices of Aberdeen and Grampian Chamber of Commerce, to develop the opportunities available to Scottish service firms in the oil and gas sectors in Nigeria and Angola.

Recent terrorist attacks in the volatile Niger delta region have raised tensions in west Africa's main oil-producing region.

UKWAAG yesterday revealed that, as result of the increasing dangers to companies operating in the area – and their employees – the organisation had enlisted the aid of AKE Ltd, a leading international risk mitigation and security company.

A spokeswoman for the chamber of commerce explained:

"Africa offers some of the most lucrative oil and gas opportunities in the world and west Africa has been identified by the subsea sector as one of its largest areas of growth.

"It has both established reserves and less-explored markets, all of which are exciting and potentially rewarding opportunities. These are, however, sullied by the security challenges that accompany them."