Out-Law News 1 min. read

Cyber attackers could target North Sea oil and gas facilities due to cost-cutting measures, says KPMG


The increasing trend by North Sea oil and gas companies towards integrating their pipeline control systems with the rest of their IT facilities could open them up to the threat of sophisticated cyber attacks, according to KPMG.

The professional services firm said that firms could save money and improve efficiency by combining their industrial control systems (ICS), which monitor and manage production and supply, with their wider networks. However, the trend could also expose oil and gas pipelines to cyber attacks they were never designed to resist, it said.

"While the issue of industrial espionage and IP theft is not new, developments in pipeline management which have seen traditionally closed systems integrated with wider networks means oil and gas companies must now also address the very real potential of cyber attacks on their supply," said George Scott, KPMG's Scottish head of information protection and business resilience.

He added that oil and gas businesses also needed to be aware of the potential risks of using mobile devices to share information, and should develop procedures to police the way mobile technologies are used by their staff.

The Government has estimated that oil and gas companies are already losing almost £400 million each year to cybercrime and intellectual property theft, according to KPMG.

Industry body Oil and Gas UK told the Scotsman that it was aware of the emerging threat, and was in discussions with the Government about how best to deal with it.

"The industry is very alert to these issues and employs relevant specialists to monitor and address cyber security measures," said Robert Paterson, its health and safety director. "These specialists maintain close links with the relevant departments in the UK Government."

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