control of oil
Libya: ISIS attacks oil export terminals
At least two members of Libya's Petroleum Facilities Guard were killed Jan. 4 as ISIS militants attacked the Sidra and Ras Lanouf oil export terminals. Militants launched two suicide car-bomb attacks at the security gate of the Sidra facility in a diversionary strike while another force of up to a dozen vehicles looped south and attacked Ras Lanouf, some 30 kilometers to the east. One of the facility's storage tanks was set ablaze in the assault. The attack comes two weeks after French Defense Minister Jean-Yves Le Drian warned that ISIS was planning to seize Libya's oil facilities. Sidra and Ras Lanouf are under control of the internationally recognized government based in Libya's east, but last year were the scene of battles as Libya Dawn forces loyal to the Tripoli-based regime attempted to take the facilities. Sidra and Ras Lanouf lie near the border between the rival regimes' territories They also lie just east of Sirte, the principal ISIS stronghold in Libya. (Libya Herald, BBC News, CBS, Jan. 4)
Bolivia: first woman serves as military commander
For the first time in Bolivia's history, a woman assumed the post of chief of the Armed Forces High Command as Gen. Gina Reque Terán was sworn in Dec. 30. In her inaugural speech she vowed: "We will work ardently in the struggle against the narco-traffic and contraband, for the protection of natural resources... We will be forever alert to respond to any natural disaster... We will be prepared for any contingency." President Evo Morales in his own comments noted the military's role in the 2006 nationalization of Bolivia's hydrocarbons, which allowed the country to "liberate" itself economically. He also thanked the armed forces for their support in confronting the secessionist movement in Bolivia's east.
Syria and Ukraine wars headed for convergence?
Disturbing reports emerged Dec. 14 that the Russian navy forced a Turkish merchant ship to change course in a brief confrontation in the Black Sea. Russian naval forces were apparently protecting vessles that were towing two oil drilling platforms that are being disputed between Russia-annexed Crimea and Ukraine. Following the annexation of Crimea last year, the Chernomorneftegaz drilling company—a subsidiary of Ukraine's parastatal Naftogaz—was seized by the Crimean regional parliament. Ukraine says it will challenge the seizure before international arbitrators. Chernomorneftegaz's drilling platforms, operating in international waters off the Ukrainian port of Odessa, were being relocated to Russian territorial waters when they were bocked by a Turkish merchant ship. Moscow's Defense Ministry said the incident was "resolved" when a Russian missile cruiser chased the Turkish vessel off. In another incident reported one day earlier, the Defense Ministry said its destroyer Smetlivy "fired warning shots" to deter a Turkish fishing vessel in the Aegean Sea "to avoid a collision." Turkey's military attaché in Moscow was summoned to the Ministry over the incident. (Daily Sabah, Dec. 15; RT, Dec. 14; RT, Dec. 13)
Russo-Turkish pipeline route on hold amid crisis
With Moscow threatening sanctions against Turkey in the aftermath of the downing of a Russian warplane on the Syrian border, plans for a Russo-Turkish free trade zone appear be on hold—along with key energy projects. Foremost among these is the TurkStream gas pipeline, which Economy Minister Alexei Ulyukayev said Moscow could "restrict." (Reuters) TurkStream is being developed by GazProm, the Russian energy giant, to export Russian (and potentially Central Asian) natural gas through Turkey via the Black Sea. Ulyukayev's hedging is understandable: this has long been a strategic project for Moscow, which has long nurtured a grudge over the Baku-Ceyhan pipeline—linking the Caucasus to Turkish port of Ceyhan through a route that by-passes Russia.
Glencore secures Libya oil contract
Media accounts Nov. 20 report that Glencore, the commodity trader with global mining operations, has secured a deal with Libya’s National Oil Corporation (NOC) to broker the nation's crude. The agreement, initiated in September with an option to renew in December, covers 150,000 barrels a day, or roughly half the amount currently being exported. According to Reuters: "Under the arrangement...Glencore loads and finds buyers for all the Sarir and Messla crude oil exported from the Marsa el-Hariga port near the country's eastern border with Egypt." The reports portray the deal as uncontroversial. The Financial Times writes: "The National Oil Corporation, along with the central bank, is one of the few institutions still functioning in Libya, where a civil war has left the country divided between an internationally recognised government in the east and an Islamist militia in the west that controls the capital Tripoli." In fact, the NOC is also divided, with feuding branches controlled by the rival regimes. Marsa el-Hariga is just outside Tobruk, exiled seat of the recognized government. We can be certain that the Glencore deal will raise protests (at least) from Tripoli.
Libya: oil output plummets as rival regimes fight
Libya's oil output dropped below 400,000 barrels per day after the divided country's internationally recognized government in the east sent troops of the Petroleum Facilities Guard to close the port of Zueitina on Nov. 5, charging that tankers seeking to load crude there had failed to register with the National Oil Corporation (NOC). Vessels registered with the rival NOC headquarters in Tripoli are "illegitimate" and won't be permitted to load at the port, Petroleum Guard spokesman Ali al-Hasy told Bloomberg by phone. The Tripoli-based NOC declared force majeure and said in a statement that the port was closed for all exports due to a "deteriorated security situation." Libya, with Africa's largest oil reserves, pumped about 1.6 million barrels per day of crude before the 2011 revolution. Libya is currently the smallest producer in the Organization of Petroleum Exporting Countries. (More at Hellenic Shipping News, Maritime Executive, Aramco FuelFix, Nov. 5)
Obama and the KXL-TPP contradiction
An ominously ironic juxtaposition of news stories, for those who are paying attention. First, the apparent good news. President Obama announced Nov. 6 that he's rejected the Keystone XL oil pipeline, after seven years of deliberation on the question. Obama invoked the prospect of leaving the 800,000 barrels a day of Canadian shale oil the pipeline would carry in the ground. "America is now a global leader when it comes to taking serious action to fight climate change," the president said. "And, frankly, approving this project would have undercut that global leadership." (NYT, Nov. 6) But one day earlier, Obama notified Congress of his intent to sign the Trans-Pacific Partnership (TPP), and finally released the text of the heretofore secretive trade deal. The notification starts a 90-day countdown to the next step in the approval process—seeking Congressional authorization. (The Hill, Reuters, Nov. 5)
Hague to rule in South China Sea dispute
The Permanent Court of Arbitration (PCA) in The Hague ruled (PDF) Oct. 29 that it has jurisdiction to hear a dispute between the Philippines and China over parts of the South China Sea. At issue are a number of islands and shoals, which the Philippines says China has annexed illegally under the UN Convention on the Law of the Sea. China has long held that the PCA lacks jurisdiction to hear the case, saying that it would be open to bilateral negotiations with the Philippines over the issue. China has boycotted the proceedings, rejecting the court's authority in the case. Beijing claims sovereignty over almost the entire South China Sea, maintaining that its rights are based on history rather than legal precedent.
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