Oil Companies Face Rise in Security Costs After Militant Attack

Reuters reported that after the attack on an Algerian gas plant last week, oil executives are now dealing with a rise in security costs and officials believe that investment in the energy industry’s new projects may slow down as a result.

As quoted in the market news:

Our industry is traditionally linked to political risks but last week’s events will lead to a major review of security spending,” said Andrei Kuzayev, who heads overseas operations at Russia’s Lukoil.

This would inevitably mean a big rise in costs, Kuzayev said at the gathering held on the sidelines of the World Economic Forum in Davos. The Algerian siege staged by Islamist militants ended with heavy loss of life among foreign hostages when government forces stormed the plant deep in the Sahara desert.

Click here to read the full Reuters report.