control of oil

Ukraine crisis threatens Russian pipeline plans

In response to the Crimea crisis, EU Energy Commissioner Guenther Oettinger announced he is to delay talks with Russia on the South Stream gas pipeline that would export Russian gas via the Black Sea. The South Stream line strategically bypasses Ukraine, which currently hosts the main arteries for export of Russian gas. (Reuters, March 10) The European Commission has already postponed discussion of the OPAL pipeline, part of the Nord Stream project, which similarly bypasses Ukraine via the Baltic Sea. (Voice of Russia, March 11) Russia's giant Gazprom, which uses the existing Nord Stream line to send gas to Germany, plans to start shipments to Europe through the South Stream line at the end of 2015. Russia is seeking to boost gas exports to Europe as much as 23% over the next 20 years. (Bloomberg, March 12)

Mexico: Citigroup, Pemex mired in fraud scandal

Some 1,200 employees of the Mexican oil company Oceanografía SA de CV began blocking the four entrances to the Laguna Azul industrial dock in Ciudad del Carmen in the eastern state of Campeche early on the morning of March 7, disrupting the operations of at least 40 companies that provide services to Petróleos Mexicanos (Pemex), the government's giant oil monopoly. The workers were demanding payment of wages that have been held up since the government's Finance Secretariat took over the bankrupt company at the end of February after it became mired in allegations of fraud.

Libya: parliament, oil-field targeted by protesters

Libya's parliament moved to a Tripoli hotel March 3, a day after protesters stormed the building, killing a guard and wounding six legislators. Protesters swept the parliament chamber while it was in session, firing live rounds, throwing bottles at lawmakers, and setting fire to furniture, while chanting "Resign, resign!" Elected after the 2011 uprising, the parliament has sparked popular anger by extending its mandate, which was meant to have expired on Feb. 7, until the end of December. For weeks, hundreds of protesters have held daily demonstrations demanding the parliament be dissolved. (Al Jazeera, March 3)

Costa Rica to sue Nicaragua over offshore oil blocs

The Costa Rican government announced Feb. 4 that it is preparing to file a new complaint against Nicaragua with the International Court of Justice at The Hague, accusing Managua of offering Costa Rican maritime territory to international oil companies. Nicaraguan President Daniel Ortega has dismissed the charges, stating the area in question clearly falls within the country’s maritime borders, as outlined by an ICJ ruling of November 2012. The announcement marks the third ICJ case between the two nations. Costa Rica filed the first complaint in November 2010, accusing Nicaragua of seizing Isla Portillo (also known as Isla Calero and Harbour Head Island) in the Río San Juan, which forms the common border. In December 2012, Nicaragua filed a grievance charging that Costa Rica's construction of a highway along the San Juan was causing environmental damage. The first claim was upheld by the ICJ in n November 2013, with the court ordering Managua to remove all personnel and equipment from the disputed island. In December 2013, the Court rejected the second claim, finding that “Nicaragua has not...established the existence of a real and imminent risk of irreparable prejudice to the rights invoked" in the highway project.

Syria: NATO intervention —against al-Qaeda?

The Turkish armed forces on Jan. 29 attacked a convoy of al-Qaeda-linked rebel group ISIS in Syria in, destroying three vehicles, according to Turkish media reports. Turkish F-16s apparently struck the convoy "after militants opened fire on a military outpost" on the Turkey-Syria border. (Al Jazeera, Jan. 29) The skirmish comes amid reports that both ISIS and the Nusra Front, both al-Qaeda affiliates, have seized control of most of Syria's oil and gas resources, which lie in the country's north near the Turkish border, and are using the proceeds to underwrite their wars against both rival rebels and the Bashar Assad regime. While the oil and gas fields are in decline, control over them has been key to the growing power of the two groups. ISIS is even said to be selling fuel to the Assad government—lending weight to claims by opposition leaders that the regime is secretly backing the Qaedists to weaken the other rebel armies and discourage international support for their cause. (NYT, Jan. 28; The Telegraph, Jan. 20) 

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)

Syndicate content