Despite Security Concerns, Oil Companies Position Themselves for Leadership in Libya
The North Africa Journal | By Arezki Daoud | In all our discussions with corporate executives, we end up with two critical conclusions regarding their exposure to the region and beyond. First, doing business in North Africa is important to them and their companies given the oil and gas sector, and the vast amounts of money governments there have to spend on economic buildup and reconstruction. Ignoring the region is not the smart option, and they know it. Secondly, however, the risk factor in the region is a permanent one, requiring higher operational cost and perpetual reassessment of postures and exit strategies.
While always there, the risk factor has increased substantially ever since the Arab Spring started, then accelerated as a result of a security vacuum when the dictators were toppled. The attacks against US embassies in the region and the assassinations of US diplomats confirm that the security issues are still front and center and not likely to lessen any time soon. Yet, and despite worries, oil companies are apparently not keen on exiting the lucrative Libyan territory. They only have to reassess their security posture and manage the risk appropriately. Continue here | Click here to subscribe | Contact us to discuss this topic.