London - 7 December 2004 - The oil and gas industry should remain constantly alert against the threat of terrorist attack, according to a new report released by Aon Limited, the UK’s leading insurance broking, risk management and consulting company. Oil and gas installations, including pipelines, terminals and distribution systems, are a very popular terrorist target.

The report, based on an analysis of Aon’s database of terrorist attacks, identifies explosive attacks on oil and gas pipelines occurring in 10 different countries around the world between 2000 and 2004.

The increased risk of global terrorism from bodies such as Al-Qaida has prompted many companies to improve security measures but, for most, this poses a number of difficulties given the unpredictable size and nature of the risk involved. A failure to address these threats by the board of any organisation will have a material impact on financial valuation and employer liabilities. Executives must identify, acknowledge and take measures to reduce their risk exposure and manage the crisis should it occur.

The motives for such attacks disclosed in the report vary considerably. In some cases, the powerful explosive nature of oil and gas is seen to make any attack dramatic and more damaging. In others, energy companies are seen to embody all the values of western society.  In certain circumstances oil and gas are seen to be so critical to the economies of countries with no other resources that even the smallest attack can have a severe impact.

Justin Priestley, a director of Aon Crisis Management, said, “The nature of the risks to which corporates are exposed has shifted significantly in recent years. This report outlines the very real and dangerous threats that global terrorism poses to companies operating in the oil and gas sector. 

“Although many people may feel that attacks of this nature are very difficult to quantify, it is vital that the measures in place are efficiently tested through a full risk analysis and damage assessment so as to minimise the financial impact should such terrorist events occur.”

Notes to Editors
 

For companies looking to review their current terrorism plans and crisis measures to deal with such threats from global terrorism, Aon Limited’s crisis management arm has established a risk assessment service to test current terrorist modus operandi and identify any weaknesses in the systems that companies currently have in place.

About Aon

Aon Limited is the UK arm of Aon Corporation. Aon Corporation (www.aon.com) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 51,000 professionals in its 600 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

Aon Limited is authorised and regulated by the Financial Services Authority in respect of insurance mediation activities only.