Rami Wadie, corporate governance and enterprise risk services partner at Deloitte, talks to TOGY about the dangers of declining standards in new markets, cyber threats to oil refineries and how localisation can add value to an international company. The multinational auditing and tax consulting firm is working with the GCC as a growth market due to the region’s $172 billion in total contracts for 2015.
What factors have contributed to tighter information security in the GCC’s oil industry?
In 2014, oil companies in the region such as Kuwait National Petroleum Company, Kuwait Oil Company and Saudi Aramco were under large-scale information security cyber attacks. All of the major regional oil and gas companies have been fending off these hackers, so improving their infrastructure and focusing on information security and data protection have become important priorities.
In Kuwait companies are now more aware of online security and investing in it. An area that is gaining attention is the classification of data that is internal to the company and data that is public and the systems to maintain this privacy. This will be an area of focus for the coming two to three years because of what businesses, oil- and gas-related or not, are facing globally regarding information security.
What are the biggest trends in Kuwait’s oil industry going forward from 2020?
The requirement of increased participation of Kuwaitis in the business sector will be a major trend in the years ahead, which can be a very good thing if it is done right. This will require monetary investment in not just people and training, but also investment of time in ensuring the correct career path for the skills available.
A part of this trend is for locals to go from the public to the private sector, so they also need to be brought up to par regarding expectations and compensation. The oil and gas industry in Kuwait still commands the most power in regard to knowledge, experience and growth for local workers. If Kuwaitis move to the private sector, it should be done in co-ordination with the oil and gas industry to make sure that there is a flow of resources between the two sectors.
Corporate governance and risk are integrated with this localisation movement. Personnel need to know what is expected of them and how they will be rewarded. Corporate governance and risk management should be given more importance going forward because international companies are held accountable for the actions of their local employees.
Creating a business environment that is conducive to reporting conflicts of interest, among other concerns, allows people to speak up if they believe something is wrong. Implementation of these whistle-blowing systems and procedures should become a priority for companies operating in the Kuwaiti market.
For more news and features on Kuwait, click here.
TOGY talks to Sylvain Itté, French Ambassador to Angola, about the strong economic and cultural ties between the two countries,… Read More
TOGY talks to Li Patrik, director of energy, environment, infrastructure at the China-Britain Business Council (CBBC), about the difficulties of… Read More
TOGY talks to Río Negro province Secretary of Hydrocarbons Sebastian Caldiero about policies implemented by the provincial government to manage… Read More
TOGY talks to Heba Filobbos, area manager of the Northern Gulf for Halliburton, about the company’s experience working as an… Read More
TOGY talks to Christopher Gunson, partner at Amereller, about the oil and gas industry in the UAE and the surrounding… Read More
TOGY talks to Graeme Taylor, Vice President for Angola at Halliburton, about forecasted stabilisation, onshore potential and the qualities required… Read More
This website uses cookies.