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2014 Security Threats to Energy Infrastructure:
Key Challenges
George Kobani
Transocean
West Africa
Security Risks:
From Big Picture to small details
Regional ?
• Regional conflicts
• Cross border insurgencies
National ?
• Political risks (policy, policing, corruption, regulation)
• Government security capabilities
Local/ Community ?
• Disenfranchised Communities
• Local disputes
• Local crime networks
Regional overview
• Security challenges include crime,
piracy, cross border arms
proliferation, human and illegal
drugs trafficking, illegal and
unregulated fishing
• Unlike Central , East Africa, West
African Countries interfere less in
neighbors politics, borders and
autonomy are generally respected
• Exceptional cases are Cameroon
/ Nigeria and Ghana, Cote d’Ivoire
security / border issues
• Regional response capability
through ECOWAS is delayed but
robust when eventually activated
Regional overview
Energy infrastructure is associated
with:
• Oil and Gas: Nigeria, Ghana,
Cameroon Cote d’Ivoire. With
Nigeria and Ghana piquing the
most interest
• Mining: Cote d’Ivoire, Guinea,
Ghana, Liberia, Sierra Leone
have mining industry and
infrastructure developed to
varying degrees
• Power: Transnational Power
infrastructure and deregulated
market is still in development
stage or at small scales
Security Risks
2012 Survey:
Security Challenges Facing West Africa
Source: PCTS, COSEG, http://www.corprisk.net/
* Most PCTS members operations are located in Nigeria
Global Regional*
Piracy in West Africa
2012
72Attacks
17
Kidnaps
5
Fatalities
2013
116 Attacks
134
Kidnaps
20
Fatalities
West Africa Piracy Hotspots
Gulf of Guniea Maritime Attacks 2013
Attacks by Vessel Type
Fishing
trawler
Cargoe
vessels
Product
tankers
Supply
vessels
Passenger
vessel,
Bayelsa / Brass
Akwa Ibom/
Cross Rivers
Bakassi
Rivers 3
Togo 3
Cote d'Ivoire 3
Lagos
Deep
offshore
Attacks by Location
West Africa Piracy Hotspots:
Niger Delta Region
Piracy in West Africa
• Transnational piracy gangs
staging attacks up to Gabon,
Angola, Cote D’Ivoire
• Gangs also associated with oil
theft in Niger delta region and
connections to former militants
• Target is on refined petroleum
products
• Unlike Gulf of Aden, Private
Marine Security companies will
not be the solution
• National Navy Cooperation is still
insufficient (with except Benin –
Nigeria cooperation)
Terrorism:
Northern Nigeria’s Boko Haram
• Boko haram and its splinter group
Ansaru have a fluctuating connections
AQIM and al Shabaab.
• Boko Haram’s activities can have
destabilizing effects in Chad,
Cameroon and Niger
• Boko Haram’s activates have
particularly stifled investment in
infrastructure, power and telecoms
and business in Northern Nigeria
• Boko Haram’s activities and support
base will be limited in Southern,
Christian regions
Boko Haram expresses a more diverse, less material objective Primarily
based on a clearly articulated religious agenda to Islamize Nigeria
Country Risks
Cote D’Ivoire
• President Alassane Ouattara still
trying to settle rifts from election
crisis and civil war
• Reconciliation meetings between
the opposition and the
government has not generated
significant gains
• Country still vulnerable to unrest
due to ethno religious divides
between North and South
• Security skirmishes at border
areas in 2012 fueled by arms
proliferation
• Presidential elections will be held
in end 2015
Nigeria
• Ruling party experiencing deepest
fragmentation since its rise to power in
1999
• Government still maintaining a fragile
stability in the oil producing Niger delta
region through its Amnesty programme
• Northern /Middle belt affected by
religious and ethnic crisis with high
human casualties and impact on
investments
• Companies face significant challenges in
dealing with poor and disenfranchised
communities in project areas
• Oil theft is among most significant
economic and security challenges facing
Nigeria
• Presidential / Parliamentary Elections in
early 2015
Guinea
• Successful presidential elections in
2012 left some ethnic groups feeling
marginalized
• Recent parliamentary elections have
Restoring trust in the electoral system is
crucial to defusing inter communal
tensions.
• Long standing military rule has
weakened democratic institutions and
poses a incessant threat
• Plentiful natural resources, including
bauxite (aluminum ore), iron ore and
vast tracts of arable land, can build a
strong economy
• Guinea’s progress on stabilizing its
political situation will impact on
investments in mining, power and
infrastructure
To Go or Not?
• Yes but, political risks must be considered
• We still don’t have a real regional market
• So every Country must be approached
differently
• Local contacts and knowledge essential
• Operations regulated by global standards for
– Safety and security
– Ethics
– Social responsibility
– Voluntary principles of security and human rights
Government permits and licenses does
not equal social license to operate in
communities
– Robust engagement with communities
– Avoid community gate keepers / fat cats
– Management of expectations
– Transparency
Security Policies
• Occupier mentality is recipe
for failure
• Making community
stakeholders in projects
through jobs, contracts,
support to education is best
defense against threats
• Ensure local law enforcement
or military involved in the
security program, practice
Voluntary Principals on
Security & Human Rights
Nigeria: Burgeoning Power Sector
• Community risks
• Payment risk
• Kidnap risk
• Violence risk
2014 Risks Summary
• National and local politics
• Disenfranchised Communities
• Rising Piracy and Oil theft
• Crime: Kidnap and Ransom
• Terrorism
• Corruption
• Skills gaps in Local Areas

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2014 Security Threats to Energy Infrastructure Key Challenges George Kobani

  • 1. 2014 Security Threats to Energy Infrastructure: Key Challenges George Kobani Transocean
  • 3. Security Risks: From Big Picture to small details Regional ? • Regional conflicts • Cross border insurgencies National ? • Political risks (policy, policing, corruption, regulation) • Government security capabilities Local/ Community ? • Disenfranchised Communities • Local disputes • Local crime networks
  • 4. Regional overview • Security challenges include crime, piracy, cross border arms proliferation, human and illegal drugs trafficking, illegal and unregulated fishing • Unlike Central , East Africa, West African Countries interfere less in neighbors politics, borders and autonomy are generally respected • Exceptional cases are Cameroon / Nigeria and Ghana, Cote d’Ivoire security / border issues • Regional response capability through ECOWAS is delayed but robust when eventually activated
  • 5. Regional overview Energy infrastructure is associated with: • Oil and Gas: Nigeria, Ghana, Cameroon Cote d’Ivoire. With Nigeria and Ghana piquing the most interest • Mining: Cote d’Ivoire, Guinea, Ghana, Liberia, Sierra Leone have mining industry and infrastructure developed to varying degrees • Power: Transnational Power infrastructure and deregulated market is still in development stage or at small scales
  • 7. 2012 Survey: Security Challenges Facing West Africa Source: PCTS, COSEG, http://www.corprisk.net/ * Most PCTS members operations are located in Nigeria Global Regional*
  • 8. Piracy in West Africa 2012 72Attacks 17 Kidnaps 5 Fatalities 2013 116 Attacks 134 Kidnaps 20 Fatalities
  • 10. Gulf of Guniea Maritime Attacks 2013 Attacks by Vessel Type Fishing trawler Cargoe vessels Product tankers Supply vessels Passenger vessel, Bayelsa / Brass Akwa Ibom/ Cross Rivers Bakassi Rivers 3 Togo 3 Cote d'Ivoire 3 Lagos Deep offshore Attacks by Location
  • 11. West Africa Piracy Hotspots: Niger Delta Region
  • 12. Piracy in West Africa • Transnational piracy gangs staging attacks up to Gabon, Angola, Cote D’Ivoire • Gangs also associated with oil theft in Niger delta region and connections to former militants • Target is on refined petroleum products • Unlike Gulf of Aden, Private Marine Security companies will not be the solution • National Navy Cooperation is still insufficient (with except Benin – Nigeria cooperation)
  • 13. Terrorism: Northern Nigeria’s Boko Haram • Boko haram and its splinter group Ansaru have a fluctuating connections AQIM and al Shabaab. • Boko Haram’s activities can have destabilizing effects in Chad, Cameroon and Niger • Boko Haram’s activates have particularly stifled investment in infrastructure, power and telecoms and business in Northern Nigeria • Boko Haram’s activities and support base will be limited in Southern, Christian regions
  • 14. Boko Haram expresses a more diverse, less material objective Primarily based on a clearly articulated religious agenda to Islamize Nigeria
  • 16. Cote D’Ivoire • President Alassane Ouattara still trying to settle rifts from election crisis and civil war • Reconciliation meetings between the opposition and the government has not generated significant gains • Country still vulnerable to unrest due to ethno religious divides between North and South • Security skirmishes at border areas in 2012 fueled by arms proliferation • Presidential elections will be held in end 2015
  • 17. Nigeria • Ruling party experiencing deepest fragmentation since its rise to power in 1999 • Government still maintaining a fragile stability in the oil producing Niger delta region through its Amnesty programme • Northern /Middle belt affected by religious and ethnic crisis with high human casualties and impact on investments • Companies face significant challenges in dealing with poor and disenfranchised communities in project areas • Oil theft is among most significant economic and security challenges facing Nigeria • Presidential / Parliamentary Elections in early 2015
  • 18. Guinea • Successful presidential elections in 2012 left some ethnic groups feeling marginalized • Recent parliamentary elections have Restoring trust in the electoral system is crucial to defusing inter communal tensions. • Long standing military rule has weakened democratic institutions and poses a incessant threat • Plentiful natural resources, including bauxite (aluminum ore), iron ore and vast tracts of arable land, can build a strong economy • Guinea’s progress on stabilizing its political situation will impact on investments in mining, power and infrastructure
  • 19. To Go or Not? • Yes but, political risks must be considered • We still don’t have a real regional market • So every Country must be approached differently • Local contacts and knowledge essential • Operations regulated by global standards for – Safety and security – Ethics – Social responsibility – Voluntary principles of security and human rights
  • 20. Government permits and licenses does not equal social license to operate in communities – Robust engagement with communities – Avoid community gate keepers / fat cats – Management of expectations – Transparency
  • 21. Security Policies • Occupier mentality is recipe for failure • Making community stakeholders in projects through jobs, contracts, support to education is best defense against threats • Ensure local law enforcement or military involved in the security program, practice Voluntary Principals on Security & Human Rights
  • 22. Nigeria: Burgeoning Power Sector • Community risks • Payment risk • Kidnap risk • Violence risk
  • 23. 2014 Risks Summary • National and local politics • Disenfranchised Communities • Rising Piracy and Oil theft • Crime: Kidnap and Ransom • Terrorism • Corruption • Skills gaps in Local Areas