SOURCE: Alliant Insurance Services Houston

May 24, 2007 05:01 ET

Political Unrest in Nigeria, Rising Price of Oil Push Alliant's Oil and Gas Risk Index Higher

NEW YORK, NY -- (MARKET WIRE) -- May 24, 2007 --


ALLIANT'S OIL & GAS RISK INDEX

Alliant's Oil & Gas Risk Index edged up slightly this month to 81.98, due to political uncertainties and escalating violence in Nigeria and the rising price of oil. Further expropriations in Latin America and Russia also contributed to the rise in the Index. The Index measures political and macro-credit risk in oil and gas producing countries based on risk factors specific to the sector and is weighted on the basis of each country's relative importance to the global supply of oil and gas.

SPECIAL REPORT: NIGERIA

Last month's elections in Nigeria show that little progress has been made towards meaningful political reform, according to Alliant Emerging Markets' Africa expert, Conal Duffy. Mr. Duffy also observed that economic nationalism played a central role in the elections, providing a rallying point for politicians from the ruling and opposition parties. Political unrest and violence will persist over the near term, which will continue to depress production levels.

LATIN AMERICA: COLOMBIA AND PERU BUCK THE EXPROPRIATION TREND

While Bolivia, Ecuador and Venezuela take further steps towards nationalizing the industry, Colombia and Peru are actively courting foreign investment in the sector. Colombia has effectively reduced the number of rebel and paramilitary attacks on pipelines and is eager to improve production levels. In Peru, attracting foreign investment in oil & gas exploration is an integral part of President García's anti-poverty agenda.

SEE FULL GLOBAL RISK WATCH - OIL & GAS EDITION

Alliant's Oil & Gas edition of the Global Risk Watch also reviews events in Russia, South Africa, the Ukraine, and Turkmenistan. The Global Risk Watch - Oil & Gas is available on line at http://www.jltusa.net/O&G507.shtml.

A MONTHLY PUBLICATION OF ALLIANT INSURANCE SERVICES

Alliant Emerging Markets (AEM) http://www.alliantinsurance.com/emergingmarkets.htm, based in Chicago and New York, is a leading political and credit risk insurance brokerage firm. AEM's principals bring more than 50 years of experience in risk intelligence and analysis as well as insurance brokerage services. AEM is part of California-based Alliant Insurance Services, Inc., the second largest privately owned insurance broker in the United States.

Contact Information

  • For information about this press release, to schedule an interview, or to
    discuss Alliant's Oil & Gas Risk Index, please contact:

    John Minor
    Managing Director
    Alliant Emerging Markets
    630.282.0811