Mar 10 2011 |
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S&P Publishes Q&A On Political Risks For International Oil Companies Operating In The MENA Region
DUBAI, March 10 2011 - Recent civil unrest across the Middle East and North Africa (MENA) serves a salutary reminder to investors of the inherent risks of emerging markets, according to a new report published by Standard & Poor's, with the oil and gas industry remaining vulnerable to political risk because of its high reliance on critical infrastructure such as pipelines and loading facilities within host countries."Although Standard & Poor's Ratings Services sees no immediate impact from the unrest on rated European International Oil Companies, events in the MENA region are evolving rapidly and we continue to monitor them", said Standard & Poor's credit analyst Elena Anankina. "North Africa, in particular, is strategically important to many international oil companies (IOCs) headquartered in Europe. This is due to its proximity to the markets of southern Europe, the quality and accessibility of its oil and gas reserves, and its long-standing cultural and political links with Europe."
At present, we believe that a significant part of Libya's oil and gas production may be affected. Eni appears to be the most exposed producer in the region, and has the largest exposure to Libya. Other producers with significant exposure to the region are Repsol and BG Energy Holdings Ltd.
In the report, Standard & Poor's credit analysts comment on the following questions:
How important are North African countries to EMEA-based oil companies' production and how are individual companies affected?
Which rated companies does Standard & Poor's consider are most exposed to the MENA region?
How does Standard & Poor's factor in North African events into its ratings on IOCs?
Are there any benefits for IOCs arising from recent events in North Africa?
Do recent events change Standard & Poor's view of how production in high-risk countries is factored into an IOC's rating?
- Ends -
Related Criteria And Research
Corporate Ratings Criteria 2008, April 15, 2008
Measuring Global Political Risk For Oil And Gas Producers, May 15, 2008
The reports are available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. If you are not a RatingsDirect subscriber, you may purchase copies of these reports by calling (1) 212-438-7280 or sending an e-mail to research_request@standardandpoors.com. Ratings information can also be found on Standard & Poor's public Web site by using the Ratings search box located in the left column at www.standardandpoors.com. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4011.
For more information, please contact:
Analyst contacts:
Elena Anankina, Moscow
Per Karlsson, Stockholm
Karl Nietvelt, Paris
Simon Redmond, London
Matthew McAdam
Communications, London
Tel: (+44) 207 176 3605
Email: Matthew_McAdam@standardandpoors.com
© Copyright Zawya. All Rights Reserved.
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