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Financial risks
Risks that influence access to funding to meet our financial commitments include:
Identifed Risk Factor
Detailed Risk
Mitigation
Access to Capital
Insufficient funds to complete
projects, honor commitments,
pursue new opportunities and
expensive cost of capital.
Continue to reduce corporate risks, establish
credibility and reputation. Potential listing,
strategic investors.
Establish a track record with operational delivery.
Oil & Gas Prices
Low commodity pricing may make
projects uneconomic and will have
impact on Group’s cash flow.
Create portfolio balance such as with the Iraq
projects which are semi immune to low oil
pricing, focus on larger margin assets, minimum
expenditures on low margin assets, scenario
planning for different market environments.
Operational risks
The following risks could potentially impact hydrocarbon exploration, development and production. They involve staff,
contractors, communities, suppliers or events that could impact our reputation, cause cost overruns or revenue losses:
Identifed Risk Factor
Detailed Risk
Mitigation
Project Execution
Inability to complete project on time
or within budget due to insufficient
project skills or experience.
Hire quality and established contractors, start with
realistic plans; map and understand the project
risks, devise backup plans. Assign suitable human
resources to priority projects. Hire more locals
living in the country of operation to avoid any
delays resulting from work visas/permits.
Operational Hazards
All inherent dangers that are
associated with the oil and gas
industry.
Employ sound engineering, robust HSE
programmes, reputable contractors, operational
training, experienced staff, mandatory
communications processes, Business Continuity
Plan, Disaster Recovery Plan and state of the art
firewalls.
Organizational risks
Risks that may prevent the optimal utilization of available resources
Identifed Risk Factor
Detailed Risk
Mitigation
Management Skills
Any insufficient experience in
technical skills, decision making
could affect the alignment and
communications within the Group.
On the job training, focus on knowledge
dissemination, grow experience and ensure
mentorships, shared learning from previous
projects and past mistakes. Leverage partner
skills.
Staff Retention
Loss of quality staff, loss of
experience effects project
execution.
Maintain appropriate compensation and benefits
plans and understand reasons for departures.
Robust, employee focused HR programs.
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