Marsh CEO Urges World's National Oil Companies to Address Risks

As the national oil companies and their control of at least 80
percent of the world's known oil reserves continue to grow in
importance, they face a number of risks that must be addressed
strategically, according to Marsh, the world's leading risk and
insurance services firm.

Speaking at the opening of the Marsh National Oil Company
conference in Dubai today, Brian Storms, Chairman and CEO of Marsh
Inc, said: "The world's desire for environmentally-friendly energy
sources appears to be rising faster than global temperatures. This is
a growing risk to all energy producers - one that goes well beyond a
fire at a plant, or a tanker that runs aground. What's important for
you as large producers of hydrocarbons is to view this risk honestly
and address it strategically.

"The normal tendency would be a bias for action, where you might
jump to a tactical, defensive position. But there is a 'new world'
view of risk - specifically, how to find opportunity in the kind of
global changes we're seeing...where risks and potential liabilities
can be turned into a competitive advantage over those companies that
don't move to address them."

In his speech, Mr Storms cited the example of a major energy
client, with significant assets in the northern hemisphere, which
undertook a comprehensive risk assessment and prioritization exercise.
While previously the subject of climate risk had only been an
abstraction, the review found that potential impact of climate change
represented massive exposures. With many facilities situated either on
areas of permafrost or in proximity to the arctic ice shelf, a
potential thawing induced by climate change would present significant
new risk. Understanding this risk and prioritizing its potential
impact, allowed the client to take measures to address it.

Mr Storms 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 concentration 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.

Mr Storms added: "Frankly, insurable risks, while frequently
complex, are the easiest to plan for. Uninsurable risks - climate
change, for example - require far more foresight and creative
solutions. Among the most vital elements of this risk identification
process is the analysis of the value chain. That requires mapping and
dissecting supply and distribution networks to understand every
potential point of failure. We have the capability to deliver value to
a company that goes beyond the pure placement of insurance."

About Marsh

Marsh, the world's leading risk and insurance services firm, 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 of annual revenues. MMC also is the
parent company of Guy Carpenter, Kroll, Putnam Investments, and
Mercer. MMC's stock (ticker symbol: MMC) is listed on the New York,
Chicago, and London stock exchanges. MMC's website address is
www.mmc.com. Marsh's website address is www.marsh.com.