Posts Tagged ‘China’

Rosneft gets access to $100bn gas and oil field in Alaska
15 Feb 2013

exxonmobil-rosneft-company-president.nImage: Russian President Vladimir Putin and ExxonMobil Exploration Company President Stephen Greenlee.

Rosneft has reached an agreement with Exxon Mobil to acquire a 25% stake in the Point Thompson Alaska oil and natural gas field. The deal is part of the larger cooperation on exploring the Russian Arctic shelf.

­The head of Rosneft Igor Sechin and the President of ExxonMobil Stephen Greenlee have signed an agreement on joint exploration of new sectors of the Russian Arctic shelf, expanding the 2011 strategic partnership agreement.

Under the deal Rosneft gets access to one of the largest fields in Alaska which is currently operated by ExxonMobil. Participation in the project will let Rosneft develop up to a quarter of the proved gas resources of the Alaska North Slope, as well as get the latest technology for exploiting liquid gas fields in bad weather conditions, according to Igor Sechin.

In return, ExxonMobil gets the rights to explore 600,000 acres of land in the Russian Arctic, including the Severo-Karsky block in the Kara Sea, three blocks in the Chukchi Sea and two in the Laptev Sea, all of which are “among the most promising and least explored offshore blocks in the world.

According to Sechin, the agreements “take the unprecedented Rosneft and ExxonMobil partnership to a completely new level.” “The acreage in the Russian Arctic subject to geological exploration and subsequent development increased nearly six-fold,” Sechin added.

Point Thompson is a large oil and gas field in the Northern part of Alaska, which was discovered in the 1960s, which has been recently cleared for development after a legal battle between ExxonMobil and the State of Alaska. In 2012 the State, Exxon Mobil and other Point Thomson stakeholders agreed that natural gas production can begin by spring 2016, or the State could begin to take back leases.

The field is estimated to hold a potential 8 trillion cubic feet of natural gas which is a quarter of the known reserves in the region, and also hundreds of millions of barrels of oil. If the estimates are correct the area could be worth more than $100 billion.

http://rt.com/business/news/rosneft-exxonmobil-field-alaska-322/

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Russia plans $25-$30 billion oil-for-loans deal with China
14 Feb 2013

Rosneft2_1804180bAn oil production platform at the Sakhalin-I field in Russia, partly owned by ONGC Videsh Ltd., Rosneft Oil Co., Exxon Mobil Corp. and Japan’s Sakhalin Oil and Gas Development Co.

Rosneft is seeking to borrow up to $30 billion from China in exchange for possibly doubling oil supplies, making Beijing the largest consumer of Russian oil and further diverting supplies away from Europe.

Four industry sources familiar with the situation told Reuters that Rosneft was in talks with Chinese state firm CNPC about the borrowing, which would echo a $25 billion deal the two companies clinched last decade.

Rosneft said it was not currently in talks about obtaining a loan from China but declined to comment when asked whether it may enter in negotiations at a later date.

In the previous deal, Rosneft and Russian pipeline monopoly Transneft borrowed money to help Rosneft acquire the assets of nationalized oil producer YUKOS while agreeing to build a pipeline to supply China with 300,000 barrels per day for 15 years.

This time, Rosneft wants to borrow money as it is close to completing a $55 billion acquisition of rival TNK-BP to become the world’s largest listed oil producer.

Entire article: http://chinadailymail.com/2013/02/14/russia-plans-25-30-billion-oil-for-loans-deal-with-china/

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BP-Rosneft deal: Who are Rosneft?
16 Feb 2013

RosneftOilBack in 2003 few people had ever heard of Rosneft. A state-owned (Russia), relatively minor player in Russia’s oil industry, the 10 year old company was dwarfed by its privately owned rival Yukos, which was controlled by the country’s then richest man Mikhail Khodorkovsky.

That all changed in December of that year. A $27bn tax claim against Yukos set off a chain of events that would eventually lead to the bankruptcy of the company and the jailing of Mr Khodorkovsky, who was last month sentenced to a further eight years in prison for tax evasion.

But, it was 12 months later with the auction of Yuganskneftegaz, the main production facility of Yukos’s empire, that Rosneft was propelled into the big time as the business was sold off to help settle the Yukos tax debt.

Despite Yuganskneftegaz being one of the most attractive oil assets put up for sale in Russia, bidders proved elusive and in the end only two offers were made for the business; one from Gazpromneft, the oil business of state gas company Gazprom, the other from Baikalfinansgrup.

If the second name is not familiar this is no surprise – the company was only set up two weeks before the date of the auction. Even more bizarrely, the company was registered in the Russian city of Tver in a building that otherwise housed a vodka bar, a mobile phone retailer, a travel agent and a handful of other small local companies.

Yet this improbable bidder won the day, offering $9.3bn after securing a multi-billion dollar letter of credit from Sberbank, a state-owned bank. Four days later Baikalfinansgrup was bought by Rosneft.

Entire article: http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/8261264/BP-Rosneft-deal-Who-are-Rosneft.html

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Maybe related, maybe not… hmmm.

More noise from China: Submarines
16 Feb 2013

chinese-submarinesOver the last five years, Chinese submarines have been going to sea a lot more, at least the diesel-electric boats have been.

This is worrying to other nations in the region, and the U.S. Navy, because it means China is training its submarine crews for war.

Previously the Chinese kept their fleet in port most of the time. This was cheaper, although in wartime it meant that Chinese warships would not last long in combat against a better trained fleet (like the Americans, Japanese, South Koreans, or Taiwanese). Now the Chinese are building better quality subs and feel they may have a fighting chance, if they have better prepared crews as well.

Pretty noisy and easy to find

For China one downside of all this training is that the U.S. Navy has more opportunity to practice hunting Chinese subs. This is particularly true for American subs, which are well equipped with passive (listen only) sonar and are even more effective if they have a lot of sound samples for enemy subs operating underwater or on the surface.

The U.S. has discovered that Chinese diesel-electric boats are rapidly getting quieter, apparently because the Chinese have learned more about advanced techniques for “silencing” subs. Still, most of the 60 Chinese subs in service are pretty noisy and easy to find.

Meanwhile, the Chinese Navy has been designing and building a rapidly evolving collection of “Song” (Type 39) class diesel-electric submarines that emphasize quietness. The changes have been so great that the latest four Songs have been called Yuan class (Type 39A or Type 41). The original design (Type 39) first appeared in 2001, and 13 have been built.

Entire article: http://chinadailymail.com/2013/02/16/more-noise-from-china-submarines/

Timely articles from the Voice of America online.

Clinton: US Increasing Help for Syrian Rebels
July 24, 2012

Secretary of State Hilary Clinton 24July2012Image: Secretary of State Hilary Clinton 24 July 2012.

Secretary of State Hillary Clinton says the United States is increasing its efforts to help Syrian rebels fighting to topple President Bashar al-Assad.

Clinton gave no details, but she said Tuesday that the U.S. is giving such non-lethal aid as medical and communications support. She said Washington is working outside of the U.N. Security Council, where Russia and China have vetoed three resolutions that would have taken strong action against the Assad government.

The secretary said the Syrian opposition is seizing control of more and more territory, which she says will eventually become a safe haven and a base for more operations.

She said the opposition must be ready to start work on an interim government that protects the rights of all Syrians and safeguards the stockpile of chemical and biological weapons.

Opposition Demands Assad Step Down

The spokesman for the Syrian National Council says the main opposition grouping is still demanding President Bashar al-Assad leave power, denying that the coalition would consider having someone from the current government temporarily lead a political transition.

Syrian National Council spokesman George Sabra told VOA by phone from Paris Tuesday that he had been misquoted in an earlier news report in which he was reported to have said the SNC would agree to the departure of President Assad and the transfer of his powers to a regime figure, who would temporarily lead a transitional period.

“There is not any change with the position and opinion of SNC about the regime and the transition period,” he said. “The transition period should start after leaving Bashar al-Assad and his regime the power.

“And the principle of this transition period has been announced in a document issued by the most parties of the opposition in that meeting which has been held two weeks ago in Cairo,” Sabra said. “So nothing new about this thing.”

Opposition Squabbling

The opposition meeting earlier this month in Cairo was marked by squabbling among delegates. But ultimately a plan emerged for a framework for a post-Assad political transition period that includes an interim government and parliament. SNC spokesman Sabra indicated that talks continue within the opposition about the way forward if and when President Assad leaves power.

“We are discussing now between us in the council, and also with the Free Syrian Army, about the idea of the transition document,” he said.

Fierce Fighting

Meanwhile, Syrian jets flew overhead while helicopters fired missiles Tuesday in a new government push to put down the rebellion in Aleppo, Syria’s largest city.

The exact situation on the ground is not clear. But witnesses report heavy fighting in the streets. Opposition reports say thousands of Syrian troops are heading toward Aleppo from their positions near the Turkish border.

Aleppo was relatively calm until late last week when the rebels launched their operation to take the city.

The opposition-run Local Coordination Committees also reported Tuesday that government forces were shelling areas outside Damascus, as well as in Homs, and in the eastern city of Deir Ezzor.

Chemical Weapons

On Monday, U.S. President Barack Obama joined other world figures in warning Syria against using chemical weapons.

Obama’s comments came after a Syrian Foreign Ministry spokesman Jihad Makdissi said the government would never use chemical weapons against its own people, but would unleash them against what he called foreign invaders. He said the military is securely guarding the nation’s weapons stockpile.

Syrian activists say more than 19,000 people have been killed since the uprising began in March of last year.

http://www.voanews.com/content/syrian-activists-report-continued-aleppo-clashes/1444072.html

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Top US Security Envoy Holds Talks in Beijing
July 24, 2012

Image: U.S. National Security Advisor Tom Donilon (L) and China’s President Hu Jintao during their meeting at the Great Hall of the People in Beijing, July 24, 2012.

The U.S. National Security Advisor is in Beijing to meet with China’s top leaders and to discuss military and security issues as well as the China’s position on the Syrian conflict and Iran.

Thomas Donilon held talks on Tuesday with Chinese President Hu Jintao and State Councilor Dai Bingguo. Donilon told Hu that President Barack Obama is “fully committed to building a cooperative partnership with China” on issues in the region and the globe.

China’s Xinhua news agency quoted Dai Bingguo as saying that the U.S. envoy’s visit is “important considering the timing, the background and the mission.”

Jin Canrong, associate dean of the school of International Relations at Renmin University, says that although the U.S.-China relations are generally stable, the two countries have to work out conflicting opinions on a range of matters.

“The two sides do not trust each other. Donilon’s role as a national security advisor is important in defusing doubts between the two countries,” Jin said.

Syria, Iran diplomatic issues

Last week China again joined Russia in vetoing a U.N. resolution calling for sanctions on Syria. China perceives such a move as an interference in Syria’s internal affairs. Western countries, including the United States, strongly criticized China’s decision, calling the vote “deplorable”.

Jin Canrong says officials are likely to discuss Syria, but Chinese authorities are unlikely to be persuaded to adopt a more interventionist stance.

The two sides are also expected to discuss Iran, which is now subjected to tough economic sanctions that deter third countries’ imports of Iran’s crude oil. Last month, and in a surprising move, the Obama administration added China, Iran’s top customer of oil, to a list of exempted countries allowed to purchase oil from Iran for 180 days without incurring economic repercussions from the United States.

“But the exemption is of only 6 months, after that what will they do?” Jin said, suggesting that Donilon’s visit could help define what the two countries’ will do next.

On Tuesday, Chinese media widely reported on Japanese protests against a U.S. military aircraft, the Osprey V-22, that had just arrived in Japan where it will be deployed to the American military base of Okinawa. Japanese opposition came from local officials and citizens concerned about the plane’s safety record.

China did not release any official statement on the matter and Jin Canrong thinks that Donilon’s visit will not prompt China’s leaders to express their view on the subject. “It’s a tactics’ weapon that does not change the strategic balance,” he said adding that China still views it as a U.S-Japan issue.

North Korea, China Sea issues

Other areas of discussion might include North Korea and conflicts over disputed territory in the East and South China Sea.

Donilon is scheduled to meet other Chinese senior military and state officials on Wednesday, including Xu Caihou, vice chairman of China’s Central Military Commission, foreign minister Yang Jiechi, Vice Premier Wang Qishan, and Xi Jinping, the current vice president and Hu Jintao’s most likely successor after the next Party Congress scheduled for this fall.

After China, the U.S. envoy will fly to Japan to consult with senior Japanese officials on U.S.-Japan security cooperation and other bilateral issues.

http://www.voanews.com/content/top-us-security-envoy-holds-talks-in-beijing/1444109.html

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Fighting Rages in Syria, Turkey Closes Key Crossings
ONCUPINAR, Turkey, July 25, 2012

Image: A Syrian rebel takes position as a helicopter hovers over the northern city of Aleppo, July 23, 2012.

Fierce fighting continued in Syria on Wednesday. Rebels sent reinforcements to the battered historic city of Aleppo as government forces stepped up attacks with helicopters and machine guns.

Activists say rebels set fire to a police station near Aleppo. They also say clashes and heavy shelling have continued in regions including Homs, Hama, Deir el-Zour and the Damascus suburbs as President Bashar al-Assad tries to maintain his grip on power.

The opposition Syrian Observatory for Human Rights says more than 40 people have been killed across Syria on Wednesday.

Turkey Closes Border

Neighboring Turkey has closed key border crossings to commercial traffic from Syria but says they remain open for refugees.

Ankara says it is taking the measure due to security concerns. Last week, Turkish drivers said their trucks were looted and burned as rebels captured the Syrian side of the Cilvegozu crossing from government forces. Analysts say the closures will affect Syria’s economy by hitting cross-border trade.

At the Kilis refugee camp near Oncupinar, Syrian refugee Abu Hasan expressed support for Turkey’s policy. “I think this is an appropriate decision,” he said. “Turkey is making the decision to protect its border as well as to protect us.” The Killis camp houses more than 11,000 Syrians.

Refugees Increasing

The number of refugees is increasing, with most using clandestine smuggling routes over the border. Turkish Deputy Prime Minister Besir Atalay says more than 44,000 refugees are now sheltered in Turkey.

“There is an expectation that more people may come in,” he said. “Therefore, today we have decided to build new camps in several locations including Osmaniye, Kahramanmaras and Nizip.”

The Arab League has pledged $100 million to help the Syrian refugees. Turkish Foreign Ministry spokesman Selcuk Unal says Turkey welcomes donations of equipment, but does not need personnel.

“Some of this assistance has arrived, in the sense of material assistance, and we are ready to receive more of the selected items that we have announced,” he said. “And our open door policy will continue.”

Reducing the U.N. Mission

Meanwhile, U.N. observers in Syria say their mission is dwindling. Herve Ladsous, the head of U.N. peacekeeping operations, said the Syrian operation continues on a “reduced basis.” He told reporters in Damascus on Wednesday that the security situation in many parts of the country is “extremely delicate.”

On Friday, the U.N. Security Council approved a resolution renewing the observer mission for up to 30 days. The resolution allows for a pullout if the violence does not stop.

Earlier this week, the European Union decided to strengthen its arms embargo against the Syrian regime, blacklist nearly 30 government-associated people and companies, and ban the Syrian national airline from landing in EU countries.

On Wednesday, Russia’s foreign ministry expressed opposition to the EU sanctions, saying they could be seen as a “blockade” of the country.

http://www.voanews.com/content/syria-adds-troops-to-aleppo-fight/1444737.html

Sino Sandstorm: Earth Image of the Week
Earthweek – A diary of the planet
26 March 2010

Sandstorms raged across China, South Korea and even as far away as Japan for a second week, shrouding hundreds of cities in an unhealthful mixture of sand and grit…

Sand particles from the storms have been reported dimming the sun as far away as the North American West Coast.

http://bit.ly/aqghaN

Central Asian lake under threat
By Robin Forestier-Walker, Lake Balkhash, Kazakhstan
Al Jazeera online 19 Feb 2010

Balkhash basinBalkhash belongs to a string of lakes which play an important role in helping to regulate Kazakhstan’s largely arid climate. It is the end point of a river system known as the Ile Balkhash Basin that is home to more than three million people. The Ile river is fed by rainfall, snow and glacial melt from the mountain ranges which straddle China, Kazakhstan and Kyrgyzstan…

The drop appears to show that the lake has receded by up to two metres in the past five years. And in shallow areas of the lake, that regression could be even greater.

The UN acknowledged in 2004 that Balkhash was threatened by upstream extraction of water in Kazakhstan and China, largely for irrigation. China is developing the region of Xinjiang, which borders Kazakhstan. Tens of thousands of Chinese have been resettled and new dams are being built…

Central Asia has already experienced catastrophic loss of a water system. The Aral Sea is considered one of the greatest environmental tragedies of the 20th Century. Soviet irrigation led to its irreversible decline. Even today, vast quantities of water are drawn from the rivers that feed it and used for cotton cultivation by Kazakhstan and its neighbours, Uzbekistan and Turkmenistan.

The Aral Sea is now a tenth of its original size. Where there was once water, there is now desert. Fertiliser and pesticide residues have contaminated the local population, and salt particles are believed to accelerate glacial melting in mountains thousands of kilometres away.

Scientific evidence looks certain to demonstrate that the same conditions of unsustainable water use that destroyed the Aral now threaten Balkhash. What is less clear is whether it will be enough to persuade the Chinese and the Kazakhs to co-operate and compromise in order to ensure the lake’s survival.

http://bit.ly/be2et7

From Wikipedia:

It is the largest lake in Central Asia. It is a closed basin that is part of the endorheic basin that includes the Caspian and Aral seas.

http://en.wikipedia.org/wiki/Lake_Balkhash