UAL warns of increasing risks of doing business in Equatorial Guinea

UAL warns of increasing risks of doing business in Equatorial Guinea

Photo UAL

While Equatorial Guinea is taking steps to attract foreign investment into its oil and gas sector, it seems that not all is well in the country. Global energy major ExxonMobil has already unveiled plans to exit the country in the second quarter of this year and transfer its assets to the local government. 

The nationalisation of assets is a pressing issue for Universal Africa Lines (UAL) whose vessels have regularly been calling Equatorial Guinea’s ports in support of oil and gas operations. In its latest statement, UAL voiced its concerns and issued an alert to the international business community concerning the escalating risk in the country.

“Recent actions by the Ministry of Transport, Post Office and New Information and Communication Technologies to seize and nationalize properties and businesses owned by private international companies directly contravene established contracts and legal frameworks,” the company said in its statement.  “UAL advises all global entities operating in Equatorial Guinea to exercise extreme caution and re-evaluate their risk exposure. This situation poses significant threats to the stability and integrity of international business operations within the region.”

In an additional response to Project Cargo Journal, UAL said that the K5 oil centre, which is part of the UAL Alliance group, is part of the EG government’s efforts to nationalise private businesses.

“The Ministry of Transport in EG is trying to nationalize it, for now, we do not know the exact impact however we cannot confirm it is safe for UAL to send its vessels into EG ports,” the response reads.

Universal Africa Lines has serviced the Oil & Gas industry in West Africa since 1973 with its fleet of multipurpose tween-deck vessels with heavy lift capabilities and special gear for project cargoes. The facility is a hub for UAL vessels, for the US to Africa and Europe to Africa routes and South Africa to West Africa feeder service.

Author: Adnan Bajic

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