Global oil security and trade is under threat as a result of a complex mix of new political and security factors in the Middle East and West Africa. So former ambassadors warned at an evening gathering in the City of London.
Ambassador Patrick Hayford, a former Ghana Ambassador to South Africa and former Director for Africa in United Nations Secretary-General Kofi Annan’s Executive Office and Sir William Patey KCMG, a former Ambassador to Afghanistan, Saudi Arabia, Iraq and Sudan and former Head of the Middle East Department in the Foreign Office issued the warning during a panel discussion at Lloyd’s of London on June 18, on The Middle East and West Africa: The Politics & Security of Oil.
The panel highlighted a number of factors which are increasingly impacting oil security and trade which they believe will cause a growing problem:
· The steady unravelling of the nation-state structures established early in the twentieth century in the Middle East by Britain and France
· Repercussions of the deepening Sunni-Shia divide throughout the Middle East
· The likelihood of increasing threats to the security of physical infrastructure especially those relating to the oil and natural gas industries
· The growing sophistication of some of the militant extremist groups and their determination to cause the maximum damage through violent attacks
· The failure by countries in the Middle East and in West Africa to adopt and implement effective regional counter measures against the threat to oil and natural gas production and transportation
· Failure by West African coastal states to give sufficient attention to the establishment of effective coast guard capacity.
The event coincided with an announcement by the BBC that day that piracy off the coast of West Africa has now overtaken Somali piracy and that “international efforts to tackle piracy off West Africa have been slow to take effect”.
The event, hosted by The Ambassador Partnership and Maritime Asset Security and Training (MAST) Ltd, included London based diplomats, UK government representatives, and from the private sector the maritime and energy industries were represented, with underwriters, risk advisers, legal advisers, analysts and others.
Ambassador Patrick Hayford said: “The politics and security of oil in West Africa have become more complicated because all stakeholders involved are facing new challenges; oil companies face new financial disclosure requirements; the governments of West African oil producing states are under increased political pressure domestically; environmental groups are becoming more active; and the local communities in oil producing areas are more determined than ever to ensure that the resources benefit their own communities.
“We are in a significantly changed environment in terms of the oil and gas industry in West Africa, and the African governments need to recognise this, and make the necessary adjustments, especially in their dealings with the local populations most affected by the exploitation of these natural resources.
“African governments need to do more in terms of strengthening security and protection of oil and natural gas facilities and the shipping lanes and pipelines.”
He noted that according to recent reports Nigeria loses about six billion dollars annually through oil theft. He also stressed the need for a more vigorous and sustained public policy debate within Africa on these issues. He also stressed the need for Africa to tell its own story and fully recover its self-confidence.
Sir William Patey KCMG said: “Oil income helped cushion Saudi Arabia and other Gulf countries from the impact of the Arab Awakening but they will not be able to rely on ever increasing oil prices or the ability to increase production as other sources come on line including Iraq, Latin America and Iran. It will be important to make the necessary economic, political and social adjustments over the next decade to cope with an increasingly young population and their aspirations.
“Reduced reliance on Middle East oil is causing some understandable anxiety in the Gulf that the American security commitment to the Gulf will diminish. But oil is a globally traded commodity in which the US will continue to have a huge stake and in any case they have wider strategic interests in the area.”
Philip Cable, CEO of MAST, pictured, who also spoke briefly at the evening, said: “There is no doubt that mankind’s reliance on oil and fossil fuels creates an inexorable tension between those that have such resources within their territory and those that do not. Organisations operating in these regions need to consider carefully how they will secure their staff and infrastructure and how they will cooperate with the domestic government.”
Sir Stephen Brown KCVO, Co-Chairman of The Ambassador Partnership, said: “As former ambassadors we strive to uphold the values of increased transparency and absolute business integrity. We believe that the complex politics of oil producing states and those that work with them deserve special attention. We welcome this debate.”
About Maritime Asset Security and Training (MAST) Ltd
MAST is ISO 9001:2008 accredited for the provision of global maritime security services for the shipping and yachting industry.
The Ambassador Partnership is an international corporate diplomacy consulting group drawing on former ambassadors and others. Private sector clients include financial institutions, investors, underwriters, consulting firms, corporate intelligence groups, law firms and litigation funders. Public sector clients include the United Nations, other international organisations and governments.
Sir William Patey KCMG retired as British Ambassador to Afghanistan in April 2012. Sir William has also served as Ambassador to Saudi Arabia, Iraq and Sudan. He was Head of the Middle East Department in the Foreign Office before becoming Ambassador to Sudan during the negotiations for a peace agreement between the Government of Khartoum and the southern rebels (SPLA); and was ambassador to Iraq during the drafting and passing in a referendum of the new Iraqi Constitution. With The Ambassador Partnership, Sir William works with companies entering and operating in North Africa and the Middle East, in particular in the oil and gas sector and financial services and defence industries. He is a non-executive director of HSBC Middle East and Foreign Affairs Advisor of Control Risks.
Ambassador Patrick Hayford retired from the United Nations in August 2012 after six years as Director of the Office of the Special Adviser on Africa. He served as Director for Africa in the Executive Office of United Nations Secretary-General Kofi Annan (1999-2005). Hayford’s 36 year career in the Ghana Foreign Service included work as Counsellor, Ghana mission to the UN, New York, (1981-1986); Director, International Organizations and Conferences Department; Deputy Chief of Mission in Cairo (1988-1992); Acting High Commissioner of Ghana to the United Kingdom (1996-1997); and High Commissioner of Ghana to South Africa (1997-1999).
