New Marsh Study Indicates: As Risks Rise, So Do Concerns Among National Oil Companies About Their Ability to Cope

New Marsh Study Indicates: As Risks Rise, So Do Concerns Among National Oil Companies About Their Ability to Cope

April 25, 2007

Those Responsible for 90% of World's Oil Reserves Express
Concern About Their Full Understanding of the Emerging
Risks They Face


    NEW YORK, April 25 /Xinhua-PRNewswire/ -- Less than 10%
of National Oil Company (NOC) leaders surveyed by Marsh Inc.
strongly feel they have a full understanding of the risks
they face -- and how to effectively manage them.

    (Logo: http://www.xprn.com.cn/xprn/sa/200704251152.gif
) 

    This finding was contained in a new study released
today by Marsh, the world's leading risk and insurance
services firm, examining risks and operational challenges
among state-owned oil enterprises. Marsh gathered much of
the data from a recent groundbreaking global risk advisory
meeting held in Dubai and attended by approximately 250
leaders from NOCs, government and academia.

    "The Impact of Risk on National Oil
Companies," available at http://www.marsh.com , also
reveals a strong desire by NOC leaders to understand risk
better and find better ways to share related best
practices.  More than 90% of the NOC leaders Marsh polled
agreed that more discussion forums were needed.

    "The spectrum of risk that business leaders face
today is far more complex than ever before," said
Brian Storms, chairman and CEO of Marsh. "Not too long
ago, the top concern for an NOC might have been a fire at a
refinery.  But the study we conducted at the Marsh National
Oil Companies Conference in Dubai shows that newer risks --
such as the impact of climate change -- are moving near the
top of the list." 

    Storms added: "As the world's premier broker, we
will continue to provide clients with unrivaled excellence
in insurance placements.  But we'll also deliver the best
in business risk advice to help clients like NOCs go beyond
risk transfer and turn their potential liabilities into
competitive advantages."

    Andrew George, Marsh's Marine & Energy leader in
Dubai, said: "We're hopeful the many eye-opening
findings contained in this new research will help
accelerate an open dialogue on the risk issues and business
challenges NOCs face. Our mission is to promote greater
awareness and collaboration among companies that are
assuming critical leadership roles in the global energy
market."

    Marsh also cited other potential risks faced by
national oil companies, including the potential for a
terrorist act to halt distribution, the effects of a major
natural disaster on production, the potential vulnerability
of supply chains - especially due to the threat of avian
flu, as well as a variety of operational risks, reputation
risks, strategic risks and financial risks. 

    In response to the findings within the report, Marsh
said it will again sponsor and lead its second annual risk
advisory conference for NOCs in February of 2008.

    About Marsh

    Marsh has 26,000 employees and annual revenues
approaching $5 billion. The firm provides advice and
transactional capabilities to clients in over 100
countries. Marsh is a unit of Marsh & McLennan
Companies (MMC), a global professional services firm with
approximately 55,000 employees and approximately $12
billion in annual revenues. MMC is also the parent company
of Guy Carpenter, Kroll, Mercer, and Putnam Investments.
MMC's stock (ticker symbol: MMC) is listed on the New York,
Chicago, and London stock exchanges. MMC's Web site is
http://www.mmc.com . Marsh's Web site is
http://www.marsh.com . 



    For more information, please contact:

     Starry ZOU
     Marketing and Communications Manager
     Marsh Greater China
     Tel:   [phone]
     Email: [e-mail]