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Showing posts with label War. Show all posts
Showing posts with label War. Show all posts

Tuesday, August 30, 2011

Eni, Libyan Rebels Sign Deal to Restore Pre-Civil War Role

- Eni, Libyan Rebels Sign Deal to Restore Pre-Civil War Role

Tuesday, August 30, 2011
Knight Ridder/Tribune Business News
by Adnkronos International, Rome

Paolo Scaroni, chief executive officer of Eni met with Libyan rebel leaders in Benghazi Monday where they signed a non-binding agreement to restore the Italian oil company's pre-civil war role as the North African country's biggest oil and natural producer.

"With the memorandum, Eni and the National Transition Council (NTC) are working to recreate the conditions for a swift return of Eni's activities in the country," the Rome-based company said in a statement.

The agreement would allow Eni to resume gas imports to Italy via the Greenstream pipeline, a move that Scaroni last week said was important ahead of winter when demand for the fuel increases.

Scaroni's trip to Libya makes him the first head of a major oil company to visit Libya since rebels last week took over the capital Tripoli, putting an end to Muammar Gaddafi's 42-year-old authoritarian government.

News reports said Scaroni met with the head of Libya's National Oil company, in addition to the NTC, the rebel's political leadership.

Eni is expected to supply Libyan rebels with fuel as part of an international effort to create security and infrastructure in post-Gaddafi Libya.

Oil traders said Eni was trying to hire a tanker to travel to Libya this week, Reuters news agency reported.

Eni needs between 6 and 18 months to restart its oil and gas fields in Libya, Scaroni said Thursday in Milan following a meeting with NTC prime minister Mahmoud Jibril.

Eni has been in the country since 1959 and got 13 percent of its revenue from Libyan natural resources prior to the conflict that broke out in February.

(c)2011 Adnkronos International (Rome). Distributed by MCT Information Services.

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Monday, July 11, 2011

Could Energy Resources Cause Russia to Spark a Naval War in the Caspian?

- Could Energy Resources Cause Russia to Spark a Naval War in the Caspian?

Monday, July 11, 201
OilPrice.com
by John Daly

In the past three decades the Islamic Republic of Iran has developed a well-earned sense of paranoia. First, in September 1980 Saddam Hussein invaded Iran in what he thought would be a quick military victory, but which quickly turned into an eight-year bloody slugfest, leaving an estimated 500,000-1,000,000 dead before the guns fell silent.

More recently Iran has been subjected to increasingly militant rhetoric from both Tel Aviv and Washington over its civilian nuclear energy program, with thinly veiled threats of possible military action if Tehran does not abandon its efforts, even though they are completely complaint under the terms of the Nuclear Non-Proliferation Treaty (NPT), which Iran has signed.

Now however, potential is brewing for Iran from an unexpected direction - the north.

Russia is sharply increasing its military presence in the Caspian. Russian Federation Navy Commander in Chief Admiral Vladimir Vysotskii has stated that Russia's Caspian Sea Flotilla will receive up to 16 new ships over the next decade, while some aviation units will be transferred to the Navy from the Russian military's southern operational-strategic command. What has really got to have the mullahs in Tehran fingering their worry beads however is Vysotskii's promise to provide the Caspian Sea Flotilla with Bastion shore-based missile systems armed with Yakhont hypersonic missiles, which are designed to destroy surface targets at distances of up to 200 miles.

Russia's Caspian Sea Flotilla flagship, the Tatarstan frigate, is already the most powerful vessel on the Caspian, armed with Uran missiles with a range of 100 miles. Later this year the Tatarstan will be joined by a sister ship, the Dagestan.

The Caspian Sea Flotilla is also taking delivery of the first in a series of new Project 21631 Buyan-M-class rocket-artillery ships, along with three amphibious assault ships.

The Iranian Navy has a total of approximately one hundred, mostly small combat and supports ships on the Caspian. They include three Iranian-made midget submarines (of a North Korean type that can transport a group of combat divers and have a range of 1,200 miles), an outdated Salman-class minesweeper (American-made), and patrol cutters.

Russian analysts believe that Iran however has the ability to increase its Caspian naval forces by 50 percent in short order by relocating craft from the Persian Gulf.

As for the other Caspian littoral states - Azerbaijan, Turkmenistan and Kazakhstan, their naval forces are negligible, to be polite.

So, why is Russia beefing up its naval presence?

The most likely reason is the one that has bedeviled the region for the last two decades - a final treaty delineating the ownership of the Caspian's offshore waters and seabed has yet to be signed. While Moscow and Tehran might agree about keeping the U.S. locked out of exploiting the Caspian's energy resources, worth an eye-watering $3 trillion, they remain at loggerheads over the issue of dividing the Caspian, with Russia insisting that each nation receive offshore waters in proportion to its coastline, while Iran insists that all five nations receive an equitable twenty percent apiece. Under the Russian definition Iran's share would be 11-13 percent.

Complicating the issue is that international law has yet to definitively designate whether the Caspian is an inland "sea" or a lake, an adjudication which has enormous implications for both the applicability of the 1982 U.N. Convention on the Law of the Sea and negotiation of the boundary demarcation regime affecting the littoral states' rights to significant undersea oil deposits.

Ironically, Iran has itself played the "gunboat diplomacy" card in the past. On 23 July 2001, an Iranian warship and two jets forced two Azeri research vessels, the Geofyzik -3 and the Alif Hajiyev, operating in what Azerbaijan calls the Alov oilfield on behalf of BP-Amoco, to leave the field where they were conducting surveys, which lies 60 miles north of Iranian waters. BP-Amoco immediately announced it would cease exploration activities and withdrew the research vessels. Azerbaijan denounced the move as a violation of its sovereignty and on 31 July charged that an Iranian reconnaissance aircraft had violated Azeri airspace and come within 90 miles of Baku. Ramping up the pressure, Iranian former Pasdaran Commander Mohsen Reza'i pointedly reminded Azerbaijan that the whole country had once been Iranian territory and that Iran might decide to take it back, even as the Iranian press speculated that the whole thing was a provocation cooked up by Azerbaijan who was scheming to bring about American intervention in the Caspian.

In the unlikely event that hawks in Washington ever considered, then or now, to fly the Stars and Stripes on the Caspian while taking a few potshots at the evil Russkies or the even more perfidious Axis of Evil mullahs, then geography seems to have thrown a spanner in the works, as the Caspian's sole exit point, the Volga-Don canal, is controlled by... Moscow.

What seems to be happening is that Russia has decided that gunboat diplomacy has its uses, and an upping of its naval presence in the Caspian might finally persuade Iran's obstinate mullahcracy that it's time to divvy up the Caspian pie according to Moscow's formula.

And, after all, 11-13 percent of $3 trillion is no small chunk of change, even to an OPEC member.

(John Daly is an energy and geopolitical specialist with OilPrice.com. The full article is available here.)

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Friday, May 6, 2011

Bakersfield Oil Regulator Suspended in Suspected Turf War with State

Bakersfield Oil Regulator Suspended in Suspected Turf War with State

Friday, May 06, 2011
The Bakersfield Californian
by John Cox,

Bakersfield's top oil regulator, Randy Adams, has been suspended with pay over what some suspect is an ongoing turf war between local and Sacramento-based officials over how to review certain drilling-related activities.

The April 15 action appears to stem from Adams' approval of an oil producer's request to increase the volume of hydrogen sulfide -- a toxic drilling byproduct better known as sour gas -- it is allowed to inject into the ground.

Adams' superiors within the state Department of Conservation thought he should have consulted them first -- even though the approval was within his traditional authority, according to a former regulator in charge of such projects.

"It's something that I wouldn't have looked twice at as long as the operator had a legitimate reason to increase ... the injection volumes," said MIchael Stettner, who for about 20 years reviewed such projects as a regulator within the department's Division of Oil, Gas and Geothermal Resources, where Adams serves as deputy supervisor.

Department officials declined to discuss the situation, citing confidential personnel matters.

Adams, a nearly 30-year veteran of DOGGR, said he cannot confirm that the approval was the basis for his indefinite suspension. In fact, he said the department refuses to tell him why it sent him a fax notifying him of the suspension.

But Adams said he has had authority to grant such approvals since taking over the Bakersfield office -- the seat of DOGGR's busiest district -- in 2006.

The situation touches on a simmering dispute over how to regulate underground injection projects, which typically involve returning liquids and gases that come up during the drilling process back underground.

Elena Miller, a lawyer appointed in 2009 by former Gov. Schwarzenegger to head the department, has taken a more cautious approach than her predecessor to underground injection projects.

Oil companies and Kern County lawmakers accuse Miller's staff of dragging their feet on such projects, and say that this costs local jobs and limits production. They note that local offices used to have a greater level of discretion and independence from Sacramento.

The department acknowledges a slowdown in project approvals in recent years, but attributes it to staffing limitations, complex engineering issues and the need to follow state and federal laws protecting drinking water.

Assemblywoman Shannon Grove, R-Bakersfield, has pushed the Brown administration for a clearer process for approval of underground injection projects, and said she expects a resolution soon.

Grove called Adams' suspension "unfortunate" but said she did not know whether he had discretion to approve the volume increase.

"I've never seen his job description," he said.

State Sen. Jean Fuller, R-Bakersfield, also has pushed for a more transparent and streamlined project approval process. She said that although she had no knowledge of Adams' suspension, she hoped it was not related to his approval authority.

"I would be very distressed if I were able to find evidence that this has something to do with the broader ... issuing of permits," she said.

Industry representatives declined to speak specifically about Adams' suspension but they praised his work within the division.

"All I know is he's got an impeccable record," said Rock Zierman, CEO of the California Independent Petroleum Association. "He's worked there for 30 years and he's a valuable asset. I think it's a shame that he's still not there."

Les Clark, executive vice president of Bakersfield's Independent Oil Producers Agency, said the local industry is concerned, especially because assessments on oil production, rather than the state's general fund, cover salaries at DOGGR.

"It's just not good," he said, referring to Adams' suspension. "I'm telling you, it's of concern, especially with no explanations."

"Hopefully they can straighten this thing out and get him in here."

Copyright (c) 2011, The Bakersfield Californian. Distributed by McClatchy-Tribune Information Services.

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