control of oil
Oil contracts at issue in Peru political scandal
Seemingly irregular oil contracts have emerged as a factor in the ongoing political scandal that last week brought down Peru's president Pedro Pablo Kuczynski. Following accusations from left-opposition congressmember Manuel Dammert (Nuevo Perú), state agency PeruPetro admitted that hours before leaving office on March 21, Kuczynski had issued a Supreme Decree initiating the process of approving five offshore oil concessions with a private company—but without the involvement of PeruPetro in vetting the contracts, as required by law. Calling the deals "lobista," Dammert is demanding that new President Martín Vizcarra declare the contracts void. The exploration contracts for blocs off the coast of Tmubes region are with Irish company Tullow Oil, They still must be approved by the ministries of Energy & Mines and Economy & Finance. (Gestión, March 29; TeleSur, March 26; Gestión, March 24)
Environmental protester shuts Libyan oil-field
The company operating Libya's biggest oilfield, Sharara, announced March 4 that it had been shut down after a citizen closed the pipeline that pumps the field's oil to al-Zawiya refinery. The field is run by a joint venture between Libya's National Oil Corporation with Spain's Repsol, French Total, Austria's OMV and Norway's Statoil. The individual, named as Hatem al-Hadi from Zintan, claimed the pipeline passes through his land and caused environmental pollution, the Mellitah Oil & Gas consortium said in a statement. The same person reportedly closed the pipeline last year and then reopened after the company pledged that his six hectares of land would be cleaned. The company has apparently failed to follow through on its promise. With this latest closure of the Sharara field, Libya's oil output dropped to a six-month low of 750,000 barrels per day, after reaching 1 million bpd last year.
Russian Cossacks fight in Syria?
Mystery continues to surround the Feb. 8 US air-strikes on Syria's Deir ez-Zor governorate, which Damascus called a "brutal massacre" of some 200 pro-regime troops. This was the latest of just a handful of times that pro-regime forces have been targeted by the US. Initial reports said private Russian mercenaries were among those killed in the strikes, wihch were apparently in retaliation for regime attacks on US-backed Syrian Democratic Forces in the area. At issue seems to have been the "Coneco" gas-field, although the typically garbled media accounts contradict each other on whether regime forces were attempting to take it from the SDF or vice versa. But another blast at an arms depot in the same area is again said to have left 15 Russian private security personnel dead. The Syrian Observatory for Human Rights said those killed in the Feb. 15 incident at Tabiya Jazira were Russians "protecting the oil and gas fields controlled by the Syrian regime." (SBS, UNIAN, AFP, Feb. 15)
Harsh repression as bread riots rock Sudan
Sudanese authorities on Jan. 7 carried out mass arrests and confiscated newspapers as protests exploded over rising bread prices and severe economic austerity. One student was killed amid demonstrations in Geneina, capital of West Darfur state. Protests were also reported from the cities of Nyala, South Darfur; al-Damazin, Blue Nile atate; and the capital Khartoum. The unrest broke out as bakeries doubled the price of bread following a government decision to increase the price of flour nearly fourfold. The decision was part of a package of austerity measures issued by the Sudanese government under the country's 2018 budget, seeking to address the spiralling inflation rate, currently at about 25%.
Arctic oil scramble in offing after GOP tax bill
As a part of the Republican tax overhaul bill, Congress voted Dec. 20 to open Alaska's Arctic National Wildlife Refuge (ANWR) to oil and natural gas drilling, after more than four decades of contestation on the matter. The House voted 224-201 to pass the bill, mostly along party lines. This finalizes the legislation, as the Senate version was passed by a 51-48 party-line vote earlier in the day. Once President Trump signs the law, the oil industry will have finally achieved a long-sought goal. "We're going to start drilling in ANWR, one of the largest oil reserves in the world, that for 40 years this country was unable to touch. That by itself would be a massive bill," Trump boasted. "They've been trying to get that, the Bushes, everybody. All the way back to Reagan, Reagan tried to get it. Bush tried to get it. Everybody tried to get it. They couldn't get it passed. That just happens to be here."
Oil prices surge: vindication is tedious
Well, we hate to say "We told you so," but... We told you so. We've been told for the past several years now that the depressed oil prices were permanent, that thanks to fracking and the surge in US domestic production, the price was now immune to Middle East instability, dramatic spikes and "oil shocks" forever banished. Well, futures for Brent crude just hit $63.37 per barrel, with the spot price for West Texas Intermediate at $57.34. (Panorama.am, Investing.com) Creeping toward the $100 per barrel we were so recently assured was a thing of the past. OilPrice.com blames Trump's announcement that the US will move its embassy in Israel to Jerusalem, which has of course unleashed unrest in the Palestinian territories and instability fears across the Middle East. But the jump really began almost exactly a month ago, seemingly prompted by the leadership purge in Saudi Arabia. That brought the Brent crude price up to $62, its highest level since July 2015. (The Guardian, Nov. 6)
Bolivia hosts 'Gas OPEC' summit —amid dissension
The four-day summit of the Gas Exporting Countries Forum (GECF) opened Nov. 21 in the Bolivian city of Santa Cruz de la Sierra—central hub of the country's hydrocarbon-rich eastern lowlands. President Evo Morales took the opportunity to boast of his "nationalization" of Bolivia's hydrocarbon resources. But the summit comes as member nations are bitterly divided by diplomatic tensions. Established in Iran in 2001, the GECF consists of 12 members: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad & Tobago, and the United Arab Emirates. An additional seven observer nations are Azerbaijan, Iraq, Kazakhstan, Netherlands, Norway, Oman and Peru. The UAE and other Gulf States are currently at odds with Qatar, with diplomatic relations suspended since June.
Iraqi forces take Kirkuk, lower Kurdistan flag
Iraqi government forces, including elite troops of the US-trained Counter Terrorism Service and irregulars of the Shi'ite militia Hashd al-Shaabi, began an attack on Peshmerga-controlled areas south and west of Kirkuk at midnight Oct. 15, and took the disputed city the following day. Prime Minister Haider al-Abadi ordered Iraqi forces take down the Kurdistan flag in the city, and hoist only the Iraqi national flag. Iraqi forces have also taken control of the K-1 military base and Baba Gurgur oilfield outside the city, as well as the airport, and key infrastructure and roads. Thousands of Kurdish civilians have fled the city, heading toward Erbil and Sulaimani, within the official borders of the Kurdistan Region. Peshmerga forces are apparently abandoning their positions to avoid conflict, and no casualties are reported. US officials said they were "engaged with all parties in Iraq to de-escalate tension," while President Trump said the White House is "not taking sides." (Rudaw, BBC News)

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