control of oil

Force majeure at Libya's top oil-field —again

Libya's National Oil Company (NOC) declared force majeure at the country's largest oilfield Dec. 18, a week after announcing a contractual waiver on exports from the 315,000-bpd Sharara field following its seizure by protesters and militants. The Sharara facility was seized Dec. 8 by a force of desert tribesmen under the banner or the Fezzan Anger Movement, which is demanding better living conditions for the remote and impoversihed southern region of the country. Sharara is located in the Fezzan region, which produces most of Libya's oil but lacks basic services such as electricity and hospitals. The Fezzan militants were actually joined by members of the Petroleum Facilities Guard, demanding back wages be paid by the UN-backed Government of National Accord (GNA). Oil production in Libya has been repeatedly paralyzed by unrest over the past years, and the NOC is still struggling to restore output to pre-2011 levels. (OilPrice, Reuters, Gulf TimesTeleSur, North Africa Post)

The Yellow Vests and the carbon wars

The Yellow Vest movement in France scored a victory, as the government of President Emmanuel Macron agreed to suspend a controversial fuel tax after weeks of increasingly violent protests. This may be concretely a win for the working class, but the fact that Macron imposed the tax in the name of reducing carbon emissions has provided fodder for anti-environmental content to the protest movement. Exploiting this moment, Donald Trump blamed the uprising on the Paris climate accordtweeting: "The Paris Agreement isn't working out so well for Paris. Protests and riots all over France. People do not want to pay large sums of money, much to third world countries (that are questionably run), in order to maybe protect the environment. Chanting 'We Want Trump!' Love France."

Iraq: Baghdad and KRG in Kirkuk pipeline pact

The export of oil from northern Iraq's contested enclave of Kirkuk is to resume under a deal struck between Baghdad and the Kurdistan Regional Government (KRG), Iraq's Ministry of Oil announced Nov. 16. With Baghdad's Kirkuk-Ceyhan pipeline disabled during fighting with ISIS, the so-called KRG pipeline is currently the only method of delivering Kirkuk oil to foreign markets other than through Iran. That route has now also been cut off by the resumption of US sanctions against the Islamic Republic. But Baghdad and the KRG have long been at odds over terms, and the situation was worsened with the central government's seizure last year of Kirkuk and its oil-fields, which had been in Kurdish hands since the KRG routed ISIS from the enclave in 2014. US National Security Advisor John Bolton welcomed the agreement between Baghdad and the KRG as a "promising first step to return to 2017 levels." The KRG pipeline is jointly owned by the Erbil-based KRG, BP and, as of a deal struck one year ago, Russia's Rosneft. (Rudaw, S&P Global, Nov. 16; Reuters, April 19; Rudaw, April 3)

Canada's high court deals blow to treaty rights

The Supreme Court of Canada ruled Oct. 11 that the federal government does not have a responsibility to consult with First Nations before introducing legislation, even in cases when it would impact their lands and livelihood. The 7-2 ruling in Chief Steve Courtoreille et al vs Governor in Council et al ends a challenge by the Mikisew Cree First Nation of Alberta to a 2013 reform of Canada's environmental laws by the administration of then-prime minister Stephen Harper. The reform altered the Canadian Environmental Assessment Act, the Fisheries Act, the Species at Risk Act, and the Navigable Waters Protection Act, reducing the number of projects that require environmental assessment studies and narrowing the scope of those assessments. The Mikisew Cree contended that the reform violated constitutionally-protected treaty rights of Canada's indigenous First Nations.

Climate change report draws UN call for action

UN Special Rapporteur on human rights and the environment David Boyd called Oct. 8 for accelerated action to combat climate change. The statement comes after the Intergovernmental Panel on Climate Change (IPCC) released a report on the impacts of global warming of 1.5°C. Boyd said that climate change is "one of the greatest threats to human rights" and will have devastating effects on the "rights to life, health, food, housing, and water, as well as the right to a healthy environment." In order to meet human rights obligations, Boyd called on counties to exceed their Paris Agreement obligations. If the temperature is allowed to increase 2.0°C, it would result in "human rights violations upon millions of people."

Venezuela re-privatizing oil resources

Venezuela has agreed to open at least seven oil-fields to private companies in contracts "similar to ones rolled back under late socialist leader Hugo Chávez," Reuters reported Sept. 10. The plan was revealed in a televized ceremony Aug. 28 in which representatives of the companies met with President Nicolás Maduro to sign "joint service agreements" with the state oil company PDVSA. Terms of the deals were not disclosed. But in a draft contract obtained by Reuters, PDVSA offers to turn over the fields for six years on condition that the companies provide the required investment to boost production. PDVSA president Manuel Quevedo said at the ceremony that the plan would require $430 million for an increase of 641,000 barrels per day. Quevedo said the plan involves 14 companies, although only seven were present for the ceremony and the others were unnamed. The seven include five Venezuelan firms: Petrokariña, Enfriadores de Venezuela, Consorcio Rinoca Centauro Kariña, Consorcio Petrolero Tomoporo and Well Services Cavallino. The remaining two are Helios Petroleum Services of Panama and Shandong Kerui Holding Group of China. The fields in question were formerly operated by Italy's Eni and the French Total.

Libya: 'official' regime to lose control of Tripoli?

Armed street clashes have rocked Tripoli over the past week, as militias linked to the UN-backed Government of National Accord (GNA) have vied for control of the Libyan capital with rival militias that have launched an offensive on the city from the southeast. The most significant of these is the 7th Brigade from the town of Tarhuna—also known as as the Kaniat Brigade, led by the Kani brothers. The 7th Brigade has rejected the truce, vowing to continue fighting until it "cleanses Tripoli of militias." The 7th Brigade has reportedly assumed control of the airport. There have been reports that that GNA has launched air-strikes on Tarhuna, but these were denied by the Presidential Council, which said that the strikes targeted only "aggressor" postitions inside Tripoli. The city's electricity has intermittently gone out amid the fighting, and access to Facebook—the only news source for most Libyans—has been blocked, although it is unclear by whom. The GNA has declared a state of emergency in the city, and Prime Minister Fayez al-Sarraj has formed a "crisis committee" to try to broker peace. But warlord Khalifa Haftar in Benghazi, who is loyal to Libya's unrecognized eastern government, anticipated the fall of Tripoli, saying that "liberating the Libyan capital is inevitable." (Middle East Eye, Libya Observer, Libya Observer, Libya Observer, Libya Observer, Libya Observer, Libya ObserverAl Jazeera, Libya Herald, Reuters )

Canada: court halts Trans Mountain pipeline plan

Canada's Federal Court of Appeal on Aug. 30 overturned (PDF) the government's approval of the Trans Mountain pipeline expansion. A number of groups challenged the approval, including several First Nations and two municipalities, asserting that the First Nations were not adequately consulted on the project. The court found that Canada failed "to engage, dialogue meaningfully and grapple with the concerns expressed to it in good faith by the Indigenous applicants so as to explore possible accommodation of those concerns." The court also found that the National Energy Board's review process on the project failed to include the impacts of tanker traffic releated to the pipeloine expansion. The decision stated that the "unjustified exclusion of marine shipping from the scope of the Project led to successive, unacceptable deficiencies in the Board’s report and recommendations." The government's approval of the pipeline expansion was nullified, halting construction. (Jurist)

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