Oil and Gas in other parts of Asia
EXXON, SHELL, BP ON LIST TO BUILD $14 BLN GAS PROJECT
Source: North Asia News, By Lim Le Min
Beijing, June 6 2001 (Bloomberg) -- Exxon Mobil Corp., the Royal Dutch/Shell Group and BP Plc, the world's top three publicly traded oil companies, are on the final list of bidders to build a $14 billion gas pipeline in China, a PetroChina official said.
PetroChina, the country's No.1 oil company, said last month it received initial bids from 12 companies in seven groups to build the 4,000-kilometer pipeline to transport natural gas from China's western province of Xinjiang to the eastern coastal city of Shanghai.
Exxon Mobil teamed up with Hong Kong-based CLP Holdings Ltd.; BP formed an alliance with Malaysia's Petroliam Nasional Bhd., and Japan's Mitsubishi Corp., Itochu Corp. and Nissho Iwai Corp.; while Shell submitted its bid alone.
‘The oil majors are flush with cash,’ said Gordon Kwan, an analyst with HSBC Holdings in Hong Kong. No other company ‘would be able to take on such a big project.’
Beijing says the west-to-east pipeline project is a chance for foreign oil companies to sell gas in China's growing market, especially its prosperous coastal provinces. China, which counts on coal for more than 70 percent of its energy, wants to quadruple use of natural gas to 8 percent by 2010.
‘The three companies were chosen based on their commercial experience and their financial strength,’ said Cao Zhengyan, a spokesman for PetroChina, which controls the project.
Analysts say foreign oil companies are drawn by the prospect of drilling for gas in Xinjiang's Kela-2 gas field which is reserved only for the foreign company that wins the contract to build the pipeline. Chinese officials said Kela-2 is the country's largest gas field.
‘It's premature to say which of the three companies will eventually commit to the project,’ Kwan said. Much depends on the outcome of their talks with PetroChina on development of the gas fields in Xinjiang, he said. PetroChina said it has shelved talks with the other four bidders for the pipeline that didn't make it to the shortlist.
Hong Kong & China Gas Ltd., Hong Kong's sole distributor of piped gas; OAO Gazprom, Russia's No.1 natural gas company; Energomachexport Russia, an engine and equipment supplier; and Houston Inspection International Inc. had submitted separate proposals to build the pipeline.
PetroChina said construction of the pipeline is scheduled to start in the second half of this year.
PetroChina shares ended unchanged at HK$1.84 yesterday.
The Enron-Cheney-Taliban Connection?
By Ron Callari. This article originally appeared in the Albion Monitor. February 28, 2002
Enron is a scandal so enormous that it's hard to wrap your mind around it. Not just a single financial disaster, it's actually a jigsaw of interlocking scandals, each outrageous in its own right.
ENTER THE AFGHANISTAN CONNECTION.
ENTER THE TALIBAN.
ENTER GEORGE W. BUSH.
ENTER DICK CHENEY.
By Larry Chin. CRG Online Journal 2002. The Jakarta Post. Friday May 31 2002
Gas pipeline: Pakistan President Gen. Pervez Musharraf addresses a summit attended by Afghan interim leader Hamid Karzai and Turkmenistan President Sapamurat Niyazov in Islamabad. Pakistan, Afghanistan and Turkmenistan signed on Thursday an agreement to build and maintain a 1460 Kilometres gas pipeline to supply natural gas from Turkmenistan to Pakistan via Afghanistan.
Upon successfully negotiating leases to explore in Turkmenistan, Bridas was awarded exploration contracts for the Keimar block near the Caspian Sea, and the Yashlar block near the Afghanistan border. By March 1995, Bulgheroni had accords with Turkmenistan and Pakistan granting Bridas construction rights for a pipeline into Afghanistan, pending negotiations with the civil war-torn country.
The following year, after extensive meetings with warlords throughout Afghanistan, Bridas had a 30-year agreement with the Rabbani regime to build and operate an 875-mile gas pipeline across Afghanistan.
But Unocal was not interested in a partnership. The United States government, its affiliated transnational oil and construction companies, and the ruling elite of the West had coveted the same oil and gas transit route for years.
A trans-Afghanistan pipeline was not simply a business matter, but a key component of a broader geo-strategic agenda: total military and economic control of Eurasia (the Middle East and the Central Asian republics).
As of 1992, 11 western oil companies controlled more than 50 percent of all oil investments in the Caspian Basin, including Unocal, Amoco, Atlantic Richfield, Chevron, Exxon-Mobil, Pennzoil, Texaco, Phillips and British Petroleum.
Business and policy planning groups active in Central Asia, such as the Foreign Oil Companies Group operated with the full support of the US State Department, the National Security Council, the CIA and the Department of Energy and Commerce.
Among the most active operatives for US efforts: Brezezinski (a consultant to Amoco, and architect of the Afghan-Soviet war of the 1970s), Henry Kissinger (advisor to Unocal), and Alexander Haig (a lobbyist for Turkmenistan), and Dick Cheney (Halliburton, US-Azerbaijan Chamber of Commerce).
Unocal's Central Asia envoys consisted of former US defense and intelligence officials. Robert Oakley, the former US ambassador to Pakistan, was a ‘counter-terrorism’ specialist for the Reagan administration who armed and trained the mujahadeen during the war against the Soviets in the 1980s. He was an Iran-Contra conspirator charged by Independent Counsel Lawrence Walsh as a key figure involved in arms shipments to Iran.
Richard Armitage, the current Deputy Defense Secretary, was another Iran-Contra player in Unocal's employ. A former Navy SEAL, covert operative in Laos, director with the Carlyle Group, Armitage is allegedly deeply linked to terrorist and criminal networks in the Middle East, and the new independent states of the former Soviet Union (Tajikistan, Uzbekistan, and Kyrghistan).
Armitage was no stranger to pipelines. As a member of the Burma/Myanmar Forum, a group that received major funding from Unocal, Armitage was implicated in a lawsuit filed by Burmese villagers who suffered human rights abuses during the construction of a Unocal pipeline. (Halliburton, under Dick Cheney, performed contract work on the same Burmese project.)raq Occupation Report: Control of Oil Revenues by Michael Renner with Erik Leaver and Bo Palmer, September 2003 (PDF)
IRAQ: the petroleum exploration and production handbook by Michael A.G. Bunter (introduction and book promo, PDF)
Woodside announces deal with Iraqi government, Nov. 2004
Crude designs: The Rip-Off of Iraq's Oil Wealth, Platform, IPS and others, Nov. 2005
War For Oil: Iraq
From Oilwatch Network Bulletin "Resistance" Number 35, February 2003
Various reasons have been officially given for the causes of the war Bush has announced against Iraq, but it is clear that this is another oil war. An eventual overthrow of Saddam Hussein will open great possibilities for transnational oil companies, especially for US companies.
Iraq’s proven reserves reach 112,000 million barrels of crude, the largest in the world after Saudi Arabia, although it is believed, since there have been no explorations in the last 10 years, since the Gulf War, that Iraq’s reserves could be greater than Saudi Arabia’s.
The US government will doubtless be the dominant foreign power in Iraq in the post-Hussein era. Representatives of various foreign oil companies have already been meeting with leaders of the Iraqi opposition, to discuss themes of “mutual interest”.
Among these opposition groups are the umbrella organization Iraqi National Congress (INC), supported by the US government. An INC oil engineer who lives in London declared that all the oil agreements are going to be revised when there is a change of government. The leader of the INC, Ahmed Chalabi, said that he looks favorably upon the creation of a consortium led by the United States to develop Iraq’s oil fields.
It is believed that companies such as ExxonMobil and ChevronTexaco could play a new role in Iraq. Iraq’s continued presence in OPEC is also questioned.
The five permanent members of the United Nations Security Council, the United States, Great Britain, France, Russia and China, have international oil companies, with strong interests in Iraq. Of these, France and Russia have hesitated in approving an eventual warlike intervention.
On this matter, the ex-CIA director James Woolsey considers that since France and Russia have oil interests in Iraq, someone ought to say to these countries that if the government of Iraq is changed, the Unites States is going to do everything possible to ensure that US companies work closely with the government of Iraq. And if these countries do not support the overthrow of Hussein, it is going to be difficult, if not almost impossible, that the new government will want to work with them.
Russia, via Lukoil, has important economic interests in Iraq, in 1997 it negotiated a US$4,000 million contract to develop the West Qurna oil fields in the south of Iraq (with reserves of 15 thousand million barrels), but the company did not begin activities due to the sanctions imposed on Iraq by the United Nations. Iraq has threatened that it is going to rescind the contract if work does not begin immediately.
In October of last year, the Russian services company Slavneft signed a services contract for US$52 million to drill in the Tuba field in the south of Iraq, and there is a proposal between the governments of Iraq and Russia for US$40,000 million to carry out oil explorations in the western desert of the country.
Iraq has a debt to Russia of between US$7 and 8 million dating to before the Gulf War. The leader of the INC has met with the Russian Ambassador in Washington, where he noted the urgency that Russia begin a process of dialogue with leaders of the Iraqi opposition.
On another side, the French company TotalFinaElf has negotiated the rights to develop the super giant oil field Manjón near the border with Iran, which could contain some 30 thousand million barrels of crude, but Iraq announced in July 2001 that it is not going to give France the priority in developing this field, due to its decision to join the economic sanctions.
In October 2001, Thierry Desmarest of TotaFinaElf said that this was not an opportune moment to negotiate potential new contracts with Iraq. “I am waiting to see what happens in the military/political arena in the coming months. However, we have carried out studies in the two principal Iraqi fields, and thus our presence would be important for a rapid development of these fields.”
THE TRUE REASONS FOR WAR
The Ba’ath regime is brutally tyrannical, there is no doubt of that, and for may years it was an ally of the West. From them the regime received the know-how and the precursors for developing the chemical weapons that serve to repress the Kurdish population, the same people who were massacred with mustard gas.
Today, Iraq is accused of possessing the technology to develop weapons of mass destruction, including chemical, biological and nuclear weapons, and thus, of constituting a threat to planetary security. (On this subject, the White House astonished the international community last year when it rejected any new proposal to strengthen the agreement on biological weapons. The obstacle was the theme of the processes of verification, which would permit inspection of the work that US biotechnology companies do. These companies made it very clear that they would not tolerate a monitoring of their installation for fear that their commercial secrets would be stolen. It is also ironic that in the war that is being planned, impoverished uranium could be used, which is a weapon of mass destruction, and that the United States has the largest arsenal of nuclear weapons and is, up to now, the only country which has used these kind of weapons against a civilian population).
However, it is a secret from no-one that the true cause is oil, as has been the case in all the wars in which Iraq has been involved in the last few years.
As Faisal Qaragholi, leader of the INC, has declared, oil has been a curse for the people of Iraq. In fact, oil has been a curse not only for the Iraqis. All the conflicts that exist in the Middle East have had as their origin manipulation exercised by European and US empires with the goal of having access to and control of the oil resources that exist there.
When the Ottoman Empire was defeated and fragmented, its administration was divided among several European countries.
England played a very important role in this division and from the beginning controlled oil production in northern Iraq (in Kurdish territory). Production increased with the construction of the Kirkuk oil pipeline to the Mediterranean. All this production was in the hands of British Petroleum, Shell, the French company Campaignie Francaise des Petroles and the US Near East Development Corporation.
With the new world leadership in the hands of the United States after the Second World War, it strengthened its presence in the Middle East, with the goal of maintaining control over production and over the important crude reserves in the region.
With major diplomatic pressure, the US achieved that 23.75% of the shares be handed over to US companies. In 1952 Iraq became one of the major crude exporters of the world.
In 1958 there was a revolution in Iraq led by Qasin, with one of its objectives being the reduction of the power which oil companies had had in their country up till that time, to renegotiate all the contracts and to use the foreign exchange from oil to reconstruct the failing Iraqi economy... A new legislation was developed and other measures were taken which were very well received by the Iraqi population.
In 1963 the Ba’th party still in power today carried out a bloody coup d’état, but maintained the nationalist policies of Qasin. In 1972 oil was nationalized.
Shortly afterward the Arab Israeli war took place, and the Arab oil-producing countries launched an oil embargo against the West. This increased the price of crude, and Iraq began to receive important foreign exchange for this resource, which greatly strengthened the Ba’th regime.
Its oil earnings were only interrupted by the Iran-Iraq war. This war also has oil origins. When the British divided up the Ottoman Empire, they left Iraq without a port on the Persian Gulf. Basora is 20 miles away from Shatt al Arab, but they inherited the right to use the coast and water, which gives them right of use up to a few meters out to sea. At the same time, all the oil tankers which have to leave via Abadan, Iran’s main oil refinery, have to pass by there, creating a new source of conflict. On the other hand, in this Iran-Iraq war, they fought for a strip of territory on the border between the two countries, where Iraq’s most important oil reserves could be found.
In the Iran-Iraq war, the Iraqi oil industry suffered great losses, since at the start of the War, the refinery in Basara was bombed. Two oil terminals in the south: Mina al-Bakr and Khor al-Amaya, as well as the southern section of an oil pipeline which joins the terminals with the oil fields in the north; the pumping stations and petrochemical plants, all were targeted by aerial bombing. Later Syria closed the Kirkuk flow of crude to the Mediterranean, which forced Iraq to work only with a small oil pipeline that crosses Turkey.
There was also the Iraqi invasion of Kuwait, on August 2, 1990. During the Ottoman dominion, Kuwait was administered from Basora and Baghdad, but this did not accord with Western imperial interests. They considered that such important oil reserves should not be just in one country (in this case Iraq), and thus they promoted the creation of Kuwait as an independent country. Iraq never accepted this division, and what they call the separation of their southern province of Kuwait.
The subsequent Gulf War in 1991, in which the United States and NATO invaded Iraq in retaliation for their invasion of Kuwait, had as its ultimate goal the weakening of OPEC.
This new war is also an oil war. A HIDDEN WAR
The bombing of Iraq since the Gulf War in 1991, has been more prolonged than that experienced by Vietnam. Since 1991, but especially in the last 4 years, the worst campaign of aerial bombing since the Second World War has been carried out by the United States and the United Kingdom.
Between August 1, 1992 and December 16, 1998, the United Kingdom had dropped 2.5 tons of bombs over the zone of the south of Iraq, that is an average of 0.025 tons per month. In the 18 months following, between the United States and the United Kingdom, 400 tons of bombs and missiles were dropped, because Iraq had not cooperated with the United Nations inspectors, who were looking for weapons of mass destruction.
The justification has been that these two countries have a mandate from the United Nations to patrol the so-called “aerial exclusion zones”, which gives them control over the majority of Iraqi air space. On this matter, the Secretary General of the United Nations, Boutros- Ghali, declared in 1992 that the subject of the exclusion zones was not covered when Resolution 688 of the UN Security Council was approved with relation to Iraq.
Tony Blair added that these exclusion zones allow the United States and the United Kingdom to accomplish a vial humanitarian function to protect the Kurds in the north of Iraq. Ironically, both countries give immense support to Turkey, the country which serves them as the base for their military incursions into Iraq, and Turkey is the country which has most persecuted, massacred and denied the rights of the Kurdish people.
It is important to mention that the most important oil reserves being exploited at the moment in Iraq are found in Kurdish territory, including the Kirkuk field, with 10 thousand million barrels of proven reserves.
In August 1999, The New York Times reported that US airplanes have been methodically attacking Iraq. In the last few months 1100 missiles have been dropped against 359 objectives.
Bombing has increased 300%. From August to December 2002 there have been 62 attacks by US airplanes (F-16) and Tornadoes of the Royal Armed Forces of the United Kingdom. According to declarations by the British Ministry of Defence, 124 tons of bombs have been dropped during this period.
The sanctions laid out in the “food for oil” program, which began in 1996, permit US$4,000 million a year in exports to Iraq, but it is calculated that the needs to cover the minimum necessities of the country reach up to US$7,000 million. A decade of sanctions has meant the greatest mortality in a stable population. It is calculated that this has reached 2 million people. UNICEF calculates that the sanctions have meant the death of around half a million children, but this number could be higher.
Another consequence of the sanctions has been the deterioration of all the oil infrastructure.
THE COST OF THE WAR
In a planning report of the United Nations it is estimated that the military campaign against Iraq could put some 10 million Iraqi civilians, including population of refugees and displaced persons, at risk of hunger and epidemics and in urgent need.
The United Nations calculates that the number of refugees could reach 900,000 Iraqis who would be forced to migrate to neighboring countries, of which some 100,000 would need urgent medical attention. Another 2 million will be internal refugees, and would also need help.
The report says that children younger then 5 years old, pregnant and breastfeeding women will be especially vulnerable due to the collapse of the primary health system which will happen as a consequence of the war.
As for infrastructure damages, the UN believes that during the invasion, oil production will be suspended in the country, their electricity network will be seriously damaged and the capacity of the Iraqi government to continue to distribute food rations as part of a humanitarian program supervised by the United Nations will be destroyed. It is likely that epidemics will be unleashed, including cholera and dysentery in epidemic and even pandemic proportions.
ANOTHER WAR FOR OIL
According to projections made for the year 2020, the United States will buy two out of every three barrels of oil which it consumes, and thus the president of the United States has declared that “energy security” is one of the principal keys of its foreign policy. Thus war and oil go hand in hand.
Vice-President Cheney warned that in 2001, the United States confronted its most serious lack of energy since the oil embargos of the 1970s, and that dependence on crude increases when foreign powers do not always have the United States in their hearts. In the year 2000, 55% of crude imports came from just 4 countries: Canada, Saudi Arabia, Venezuela and Mexico.
They see that it is therefore urgent to diversify their sources, and it is thus that world oil has become a national matter for the United States, and four strategic zones have been determined for the supply of oil and natural gas. These are: the Middle East, Africa, especially the deep sea reserves of the Atlantic coast, the Caspian and other production regions in the Western region.
In this context, an act of war against Baghdad has as its objective the taking of control over the vast oil resources of that country for the benefit of the US economy.
“When a change of regime occurs in Iraq one will be able to add between three and five million barrels of production to the world supply (of oil), a successful outcome of the war would be good for the economy” declared Larry Lindsay, ex-economic adviser to George W. Bush.
IRAQ’S OIL RESERVES
Iraq says that its proven reserves are around 112 thousand million barrels, the second largest in the world. The Iraqi government considers that if they initiate new exploratory campaigns, these reserves could reach up to 300 thousand million barrels.
Although only very limited explorations of gas have been made, the estimated reserves are of 10 trillion cubic feet, with a probable increase up to150 trillion cubic feet.
PRINCIPAL OIL FIELDS IN IRAQ
The Iraqi government considers that it is absolutely necessary to modernize its infrastructure, and drill at least 380 new production wells, but the UN Security Council has to approve any import of equipment, so Iraq cannot count on the necessary technology to modernize its oil industry. Benon Sevan, head of the UN program on Iraq says that around 2000 contracts related to the purchase of oil equipment are waiting to be approved by the Council, these have a value of US$5,000 million and that they have been held up by the United States.
Concerning what will happen in the future, Rosemary Hollis, director of Middle Eastern Studies at the Royal Institute of International Affairs holds the opinion that any new government in Iraq will have to also rely on international approval to finalize any contract in oil affairs.
The US State Department has met with the Iraqi opposition to discuss the future of the hydrocarbon sector of Iraq once Saddam has gone. A working group has also been established which includes ex-functionaries of Iraq’s oil sector, to make recommendations to a government in transition concerning how to rehabilitate the energy sector in Iraq.
Thus, what is the true cause of this war, and what is more, do the citizens of the United States have any idea what the maintenance of their lifestyle is costing humanity?
The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)