control of oil

South Sudan: oil wealth as threat to peace plan

South Sudan's fragile peace deal is in jeopardy as opposition leader Lam Akol today joined with 18 political parties to bring a legal challenge against President Salva Kiir's order to expand the number of states in the country from 10 to 28. "That order actually violates the constitution and it also contravenes the peace agreement," he said, refering to the pact that Kiir and the head of the armed opposition, Riek Machar, signed in August. "Our people are yearning for peace, so nobody should tamper with this peace agreement." he said. The leadership of rebel Sudan People's Liberation Movement-in-Opposition (SPLM-IO) also said the plan threatens to unravel the peace agreement. (Sudan Tribune, VOA, Oct. 15; Al Jazeera, Aug. 29) Not surprisingly, control of oil seems the critical issue here. A commentary for Kenya's The East African (online at AllAfrica) charges that Kiir "has basically deprived rebel leader Riek Machar of all the oil resources he was to preside over in the transitional government by unilaterally creating 18 new states. The increase of the states...through a presidential decree has placed areas with the highest concentration of oil resources in Unity, Jonglei and Upper Nile in the hands of President Kiir's Dinka community. This has created tension between the Nuer, Shiluk and Dinka in Unity and Upper Nile States, with the first two communities accusing President Kiir of carving out the oil-rich areas for his community."

Retreat on Arctic drilling —push to open ANWR

This year has seen the rise and fall of Shell Oil's plan to begin offshore Arcitc drilling in Alaskan waters. Now, the Interior Department has announced the cancellation of two pending Arctic offshore lease sales that were scheduled under the current five-year offshore leasing program for 2012-2017—Chukchi Sea Lease Sale 237 and Beaufort Sea Lease Sale 242. Additionally, the Department announced denial or requests from Shell and Statoil for extensions that would have allowed for retention of their leases beyond their primary terms of 10 years. DoI stated that "the companies did not demonstrate a reasonable schedule of work for exploration and development under the leases, a regulatory requirement necessary for BSEE [Bureau of Safety and Environmental Enforcement] to grant a suspension." But in justifying the decisions, Secretary Sally Jewell openly stated that in light of "current market conditions, it does not make sense to prepare for lease sales in the Arctic in the next year and a half." (Alaska Native News, Oct. 16) This amounts to a virtual admission that the idea here is "banking" the oil under the sea, until currently depressed prices start to rise again.

AKP-ISIS collaboration in Ankara massacre?

The aftermath of the Oct. 10 Anakara massacre—in which some 100 were killed in a double suicide attack on a peace rally—has been a study in the Orwellian. Authorities have arrested at least 12 sympathizers of the Kurdish PKK rebels, who are accused of tweeting messages indicating foreknowledge of the attack. But the actual tweets indicate they were warning of a potential ISIS attack on the rally. "What if ISIL blows up?!," one tweeted. Another voiced fear of an ISIS "intervention" at the event. This was an all too legitimate speculation, given the similar terror attack on a gathering of leftist youth in the southern town of Suruc just three months earlier. In fact, Turkish police have named one of the Ankara bombers as Yunus Emre Alagöz, the brother of  Sheikh Abdurrahman Alagöz, the ISIS operative who blew himself up in the Suruc attack. (The Guardian, Oct. 15; Anadolu Agency, Oct. 14)

Brazil: party official sentenced in Petrobras scandal

A Brazilian court on Sept. 21 sentenced former treasurer of the country's governing Worker's Party Joao Vaccari Neto to 15 years and four months in prison for charges stemming from his connection to the Petrobras  corruption scandal. Vaccari was found guilty of corruption, money laundering and conspiracy, having accepted at least $1 million in bribes from the oil company, which is partially owned by the Brazilian state. Former Petrobras director of services Renato Duque was sentenced to 20 years and eight months after being convicted of making 24 payments totaling 4.2 million reals to the Worker's Party from 2008-2010 at Vaccari's request. Investigating federal judge Sergio Moro found that the money laundering had an impact on the democratic process. Both Vaccari and Duque have denied the charges.

ISIS seizes last oil-field from Assad regime

ISIS fighters have seized the last oil-field still under the control of the Assad regime after several days of fighting, according to the Syrian Observatory for Human Rights. The Jazal field, with a production capacity of 2,500 barrels per day, has changed hands before, with ISIS briefly capturing it in June before regime forces retook it. The nearby town of Jazal has also been occupied by ISIS. Of course, the Assad regime has directly abetted the rise of ISIS by buying their oil, so now we will find out if the Islamic State will cut off Damascus and gear up for a final offensive—or if the relationship between the supposed enemies is in fact too incestuous for that. And Turkey has, up to now at least, also been a ready market for ISIS oil... A relationship also now being put to the test, as Ankara as ostensibly joined the US-led anti-ISIS coalition—despite having connived with ISIS against the Kurdish forces.

Peru: indigenous protesters occupy oil installation

In new protests over the Bloc 192 oil-field in the north Peruvian Amazon, some 20 indigenous Achuar and Kichwa warriors occupied the local air-strip of multinational Pluspetrol, in Trompeteros, Loreto region. They also seized a pumping station at nearby Pavayacu. The protesters are demanding better compensation for the use of their lands, and opposing the new contract for development of the field to Canadian company Pacific Stratus Energy, a subsidiary of Pacific Rubiales. A civil strike was also declared in Iquitos, the region's principal city, where barricades were built on major streets, paralyzing traffic. The Iquitos protesters, supported by the region's president, want the oil bloc to be taken over by state-owned PetroPeru. "The only thing foreign companies have done is pollute and foment distrust among local populations," said Loreto president Fernando Meléndez. "We don't see any benefits and remain an impoverished region." The bloc has been exploited for more than 40 years, most recently by Pluspetrol, an Argentine company whose contract expired Aug. 29. The 48-hour paro or civl strike was jointly called by Loreto Patriotic Front (FPL) and the Federation of Native Communities of Alto Tigre (FECONAT). (TerraPeru, Sept. 3, La RepúblicaReuters, Sept. 2; El Comercio, Peru21, Sept. 1; Andina, Aug. 21)

Bolivia: police attack indigenous roadblocks

Bolivian National Police on Aug. 18 used batons and tear-gas to break up a road blockade launched a week earlier by Guaraní indigenous residents—and then raided the homes of several people thought to be organizers of the action. At least 10 people were detained on the highway and in the subsequent raids at Yateirenda community, Cabezas municipality, Santa Cruz department.Community leaders accused the police of "disproportionate" force in the raids, terrorizing women, children and elders. and filed a complaint with the Bolivian Permanent Assembly of Human Rights (APDHB). Local Guaraní from Takovo Mora Original Communitarian Territory (TCO) began blocking the Santa Cruz-Camiri highway to demand the right to "prior consultation" on the development of wells at the Chaco gas-fields, run by the parastatal YPFB. The company maintains that the four wells in question are all on private lands and therefore not subject to prior consultation with the TCO. The TCO, in turn, maintains that the wells are within its traditional territory and will impact their lands. (Eju!, Aug. 18; FM Bolivia, Aug. 14; Entorno Inteligente, Aug. 11)

US eases oil export ban

The US Department of Commerce on Aug. 14 agreed to allow limited crude oil trading with Mexico, easing a ban on crude exports that has been in place for 40 years. Members of the US Congress were informed by the Department of Commerce that it plans to approve an application by Petroleos Mexicanos (Pemex), Mexico's state-run oil company, to trade heavy oil pumped in Mexico for light crude pumped in the US. Despite applications from some dozen other countries, which were denied, Canada is the only other nation currently exempt from the ban. Unlike in the agreement with Mexico, Canada is not required to export similar crude quantities to the US. An end to the ban has been called for by both members of Congress and oil producers, including Exxon Mobil Corp.

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