KEY RISKS TO LOOK OUT FOR IN THE OIL & GAS SECTOR IN 2025
October 31, 2024 Risk Mini
MODERATE-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
LOW-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
HIGH-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Security Threats: Continued security threats from militant groups and kidnappings.
– Mitigant: Enhance security measures, engage with government officials, and conduct regular risk assessments.
2. Cyber-Physical Attacks: Increased risk of cyber-physical attacks on oil and gas infrastructure.
– Mitigant: Advanced cybersecurity measures, conduct regular vulnerability assessments, and enhance employee training.
3. Regulatory Uncertainty: Uncertainty surrounding regulatory frameworks and policies.
– Mitigant: Engage with government officials & regulatory bodies, thorough risk assessments, develop contingency plans.
4. Climate Change-Related Litigation: Growing risk of climate change-related litigation and regulatory actions.
– Mitigant: Develop and implement sustainable practices, conduct climate risk assessments, and engage with stakeholders.
MODERATE-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Supply Chain Disruptions: Disruptions to global supply chains due to trade wars, pandemics, or natural disasters.
– Mitigant: Diversify supply chains, develop contingency plans, and enhance logistics resilience.
2. Local Content Requirements: Increasing local content requirements, potentially impacting procurement and operations.
– Mitigant: Develop local content strategies, engage with local stakeholders, and enhance supplier development programs.
3. Environmental, Social, and Governance (ESG) Risks: Growing ESG risks, including community protests and reputational damage.
– Mitigant: Develop and implement ESG strategies, engage with stakeholders, and enhance transparency.
4. Asset Nationalization: Risk of asset nationalization or expropriation due to changing government policies.
– Mitigant: Engage with government officials, conduct thorough risk assessments, and develop contingency plans.
LOW-PRIORITY RISKS (Potential Impact: High, Likelihood: High)
1. Digital Transformation Risks: Risks associated with digital transformation, including data breaches and system downtime.
– Mitigant: Implement robust cybersecurity measures, conduct regular system updates, and enhance employee training.
2. Artificial Intelligence (AI) and Machine Learning (ML) Risks: Risks associated with AI and ML adoption, including data bias and system failures.
– Mitigant: Implement robust AI and ML governance frameworks, conduct regular system audits, enhance employee training.
NIGERIA-SPECIFIC RISKS (Potential Impact: High, Likelihood: High)
1. Infrastructure Challenges: Inadequate infrastructure, including transportation and storage facilities.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.
2. Corruption and Governance: Corruption and governance risks impacting operations.
– Mitigant: Implement anti-corruption measures, engage with government officials, and enhance transparency.