Marsh sums up geo-political risk for global energy firms
by Gill Montia
Despite the recent period of geo-political turmoil, many economies are presenting increased growth opportunities for global energy firms, claims Marsh.
On its latest Political Risk Map, Brazil, Bolivia, Chile, Colombia, Indonesia, Mexico, Peru, Russia, Thailand, Turkey and Uruguay are highlighted as economies with potential, given certain improvements in their legal and regulatory regimes.
Higher-risk countries also showing improvements in the business environment include DR Congo, Mongolia and Myanmar.
The map, which is a joint effort with Maplecroft, is designed to enable organisations to gain a greater understanding of how global risks may affect investment opportunities and Maplecroft chief executive officer, Professor Alyson Warhurst, has named Myanmar as the country to watch over the coming year.
Even though it is ranked second for risk in 2012, recent political reforms and the prospect of sanctions being dropped, if Aung San Suu Kyi joins the cabinet, could change all that.
Professor Warhurst comments: “Vast opportunities lie ahead for oil and gas companies looking to return to the country.”
Other regions around the world remain geopolitical risk hotspots that need to be properly monitored and managed warns Jim Pierce, chairman of Marsh’s global energy practice.
Countries at potential risk of regime change, if policy reform is not undertaken, include: Belarus, Cuba, Tajikistan, Uzbekistan, Venezuela and Vietnam.
These economies are rich in natural resources but Marsh recommends that any oil and gas investments need careful planning and monitoring, on a regular basis.