control of oil

France to extradite ex-Kazakh energy minsiter

A French court in Aix-En Province on Jan. 9 ordered the extradition of Mukhtar Ablyazov, Kazakhstan's former energy minister, accused of misappropriating $6 billion from BTA Bank. The French court agreed to the extradition requests from Russia and Ukraine, which both house BTA Bank branches, partly because France does not have an extradition agreement with Kazakhstan. In 2011 Ablyazov gained political asylum in the UK after alleging that he faced prosecution in Kazakhstan because he was the leading figure in the opposition against Kazakhstan president Nursultan Nazarbayev. Ablyazov also claimed that he had been imprisoned for political reasons prior to these charges. Amnesty International  urged against Ablyazov's extradition after the court's ruling. Julie Hall, AI expert on counter-terrorism and human rights, said, "Not only do we have fears that Ablyazov would not get a fair trial in Russia or Ukraine, there is a real danger that he will eventually end up in Kazakhstan, where he will be at risk of torture and other ill-treatment." She cited a report (PDF) on the routine cooperation of Russia and Ukraine with Central Asian republics, including Kazakhstan, to transfer suspects, often at risk of their human rights.

South Sudan: Yes, another war for oil

Amid ongoing fighting in South Sudan, the Wall Street Journal on Jan. 7 notes that two of the regional powers supposedly attempting to head off further escalation through a "diplomatic effort" are Kenya and Uganda—whcih were "recruiting investors to back an oil pipeline in South Sudan in December when a rebellion upended the world's newest nation." Most reportage reads as if the "upending" came out of nowhere, but when a precursor rebellion broke out in Jonglei state last March, we noted widespread theories that Sudan was quietly backing it to interrupt plans for alternative pipeline routes through Kenya or Ethiopia, which would break South Sudan's reliance on old enemy Khartoum for getting its crude to market. So we may now be looking at a proxy war for South Sudan, pitting US client states Uganda, Kenya and Ethiopia against Sudan. On the ground, the Dinka (the group most closely linked to the ruling faction) are pitted against the Nuer (whose legitimate grievances may be exploited by Khartoum). Of course the model of a ruling clique controlling oil wealth and distributing it in clientelist manner to build a power base is what is really at root of the conflict—and neither side has any interest in challenging that.

Panama, Nicaragua canal plans stalled

Construction of a interoceanic canal in Nicaragua has been delayed by a year and will "probably" begin in 2015. The head of the canal authority, Manuel Coronel Kautz, announced Jan. 4 that more time is needed to carry out feasibility studies and choose a route. President Daniel Ortega, who promotes the project as key to Nicaragua's "economic independence," had projected construction to start in May 2014. (BBC News, Jan. 4) The setback comes as Chinese workers brought in by HK Nicaragua Canal Development Investment Co Ltd are swelling the population of Brito, a small town projected as the canal's Pacific terminus, in Rivas department. (IBT, Dec. 12)

ELN bomb Colombia oil pipeline infrastructure

The "Comandante Diego" Front of Colombia's second largest rebel group the ELN detonated explosives Jan. 1 at four crude-oil holding pools along the Caño Limon-Coveñas pipeline at Convención in the Norte de Santander department. A large blaze caused by the attacks created panic among the local population, who were forced to flee their homes, according to local media reports. Authorities are taking measures to prevent further environmental damage after the attacks, as well as reconstruct the damaged holding pools. The ELN  has been coordinating with the FARC in attacks on Colombia’s oil production infrastructure for the past few months, declaring war against multinational oil companies operating in the country last November. (Colombia Reports, Jan. 2; Radio Caracol, Jan. 1)

Report breaks down FARC military strategy

Colombia's oldest rebel group FARC has undergone significant changes concerning military strategy since entering the ongoing peace talks with the government, according to a new report. The report by think tank Fundación Paz y Reconciliación which was partly released in national newspaper El Espectador on Dec. 17 revealed how the rebel organization changed their military strategies, adapting to the rhythm of this year's peace talks. "In September and October when the negotiations were in a crisis due to a lack of progress concerning the point of political participation, [the FARC] launched a minor offensive, attacking the oil and energy infrastructure that left Tumaco 20 days without power. This shows that the operational capacity of the FARC is not that decimated," the report was quoted in El Espectador.

Mexico: fracking wins in disputed 'energy reform'

The Mexican Chamber of Deputies voted 353-134 on Dec. 12 to approve a series of constitutional amendments providing the groundwork for President Enrique Peña Nieto's controversial "energy reform." The Chamber's vote completed the amendments' passage through Congress, since the Senate had approved the measures on Dec. 10. The required ratification of the changes by 17 of the 32 state legislatures is considered certain, since the main sponsors of the "reform," the governing centrist Institutional Revolutionary Party (PRI) and the center-right National Action Party (PAN), dominate the majority of state legislatures.

Colombia: kingpin named in Trujillo Massacre

The Fiscalía, Colombia's public prosecutor, on Dec. 9 formally charged a notorious drug kingpin for masterminding several massacres between 1988 and 1994 in which hundreds of people were killed. The crimes, dubbed the Massacre of Trujillo after the town where they were committed in Valle del Cauca department, resulted in the deaths of up to 342 people. Among the victims were unionists, alleged guerrilla supporters, and a priest. Some of the victims were tortured and dismembered as a warning to rebel groups FARC and ELN, and their sympathizers. Diego Montoya AKA "Don Diego" is accused of conspiring with members of the army, police, regional politicians and paramilitary groups aligned to the infamous Cali Cartel. Several members of the security forces have also been charged for their alleged role in the killings.

Mexico: fight over 'energy reform' heats up

As of Dec. 8 the Mexican Senate was set to begin debates on President Enrique Peña Nieto's plan for opening up the state-owned oil and electric companies, Petróleos Mexicanos (Pemex) and the Federal Energy Commission (CFE), to greater participation by foreign and Mexican private companies. Supporters say the "energy reform" will bring needed capital investment and technical expertise to the energy sector, while opponents consider it a disguised plan for privatization, especially of oil production, which President Lázaro Cárdenas del Río (1934-1940) nationalized in 1938.

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