The risk of conducting business in Equatorial Guinea is rising, according to UAL.

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Even though Equatorial Guinea is making efforts to draw in outside capital for its oil and gas industry, it appears that things are not going well there. ExxonMobil, a major global energy company, has already announced that it will leave the nation in the second quarter of this year and give its assets to the local government.

For Universal Africa Lines (UAL), whose ships frequently dock in Equatorial Guinea to support oil and gas operations, the nationalization of assets is a critical matter. UAL expressed its apprehensions and cautioned the global business community about the increasing risk in the nation in its most recent statement.

The business released a statement stating that “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.” “UAL urges all international companies doing business in Equatorial Guinea to reconsider their risk exposure and proceed with utmost prudence. There are serious risks to the integrity and stability of global company operations in this situation.

UAL indicated in a follow-up statement to Project Cargo Journal that the K5 oil center, a division of UAL Alliance, is a component of the EG government’s drive to nationalize private companies.

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

Since 1973, Universal Africa Lines has provided services to the oil and gas sector in West Africa through its fleet of versatile tween-deck vessels that are equipped with heavy lift capabilities and specialized equipment for project cargoes. The building serves as a hub for UAL ships traveling on the feeder service between South Africa and West Africa as well as the US to Africa and Europe to Africa routes.

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