FOCUS 7


But such successes have been hard-won, as Western E&P companies like BG Group fi nd themselves fi ghting for space in Africa with the Chinese, who have invested heavily in the region. Gould admits China may well have leapfrogged the West in this respect. “How sustainable their model is I don’t really know,” he says. “The Chinese modus operandi is to use their principal force, which is the labour force, and to import labour into Africa to build harbours or to build roads. It’s okay until people start to notice that that takes away from local jobs.”


As global competition intensifi es and oil prices continue to fall, Gould believes E&P companies like BG Group will evolve to adopt a much tighter focus on geographies and specifi c activities. “People are going to specialise,” he says. “I think that’s probably quite a good idea.”


THE CHINESE MODUS OPERANDI IS TO USE THEIR PRINCIPAL FORCE, WHICH IS THE LABOUR FORCE, AND TO IMPORT LABOUR INTO AFRICA TO BUILD HARBOURS OR TO BUILD ROADS. IT’S OKAY UNTIL PEOPLE START TO NOTICE THAT THAT TAKES AWAY FROM LOCAL JOBS.


To fi nd out about Andrew Gould’s view of BG Group in today’s market, watch KPMG’s video interview.


© 2014 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member fi rm of the KPMG network of independent member fi rms affi liated with KPMG International Cooperative, a Swiss entity. All rights reserved.


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