Posts Tagged ‘oil’

I’m still interested in the Caspian Sea. (See https://tapister.wordpress.com/category/caspian-sea-oil/) While oil and gas are still my primary interests, today I’m also curious about water. Who owns the water in the Caspian Sea? Can Iran just siphon it off, without getting permission from the other littoral states? Or the major gas/oil conglomerates operating there? I’ve done an internet search about it and really didn’t find anything that addresses that question. Here’s some of what I did find today.

Its Great Lake Shriveled, Iran Confronts Crisis of Water Supply
New York Times online
JAN. 30, 2014

LakeUrmiaIranLAKE URMIA, Iran — An abandoned ship rusts in the mud on the south shore of Lake Urmia, where only 5 percent of the water remains, Iranian environmental officials say. Morteza Nikoubazl for The New York Times.

After driving for 15 minutes over the bottom of what was once Iran’s largest lake, a local environmental official stepped out of his truck, pushed his hands deep into his pockets and silently wandered into the great dry plain, as if searching for water he knew he would never find.

Just an hour earlier, on a cold winter day here in western Iran, the official, Hamid Ranaghadr, had recalled how as recently as a decade ago, cruise ships filled with tourists plied the lake’s waters in search of flocks of migrating flamingos.

Now, the ships are rusting in the mud and the flamingos fly over the remains of the lake on their way to more hospitable locales. According to figures compiled by the local environmental office, only 5 percent of the water remains.

Iran is facing a water shortage potentially so serious that officials are making contingency plans for rationing in the greater Tehran area, home to 22 million, and other major cities around the country. President Hassan Rouhani has identified water as a national security issue, and in public speeches in areas struck hardest by the shortage he is promising to “bring the water back.”

http://www.nytimes.com/2014/01/31/world/middleeast/its-great-lake-shriveled-iran-confronts-crisis-of-water-supply.html?_r=0

Iran’s parliament approves project on transfer of water from Caspian Sea
Trend online magazine
Jan 23, 2014

Iranian parliament has approved the project on transfer of water from the Caspian Sea to the deserts in the country’s central parts, Iranian Energy Minister Hamid Chitchian said, Mehr News Agency reported on Jan. 23. The minister noted that funds have been allocated from Iran’s state budget for this project.

Commenting on the Lake Urmia revival project the minister added that a committee was created for saving the lake. The committee will be chaired by Iranian First Vice President, Eshaq Jahangiri.

In April 2012 the former president of Iran, Mahmoud Ahmadinejad attended the foundation-laying of an irrigation system designed for transferring of water from the Caspian Sea. However Iranian MPs and some economic experts considered this project ineffective and demanded suspension of its implementation, after which construction was delayed.

The project for transfer of the Caspian Sea waters to the central regions of Iran includes: construction of hydroelectric power stations, a desalination plant, pumping stations, power lines, water pipes and tanks, according to the message.

The headquarters of Khatam-ol-Anbia, affiliated with the Islamic Republic of Iran Guard Corps (IRGC) will control the project’s realization, according to the message.

http://en.trend.az/news/politics/2233429.html

Deputy FM in Astana to Participate in Caspian Sea Working Group
Tasnimnews.com
January 29, 2014

TEHRAN (Tasnim) – Deputy Foreign Minister for Asian and Pacific Affairs Ebrahim Rahimpour left Tehran for Kazakhstan capital city, Astana, Wednesday to participate in the 35th meeting of the special working group of the Caspian Sea.

The working group session on the Convention on the legal status of the Caspian Sea will be held in Astana for two days with the special representatives and deputies minister of the five littoral countries of the Caspian Sea.

The deputy foreign ministers of Iran, Russia, Turkmenistan, Kazakhstan, and Azerbaijan will in the meeting discuss the latest developments regarding the legal regime of the Caspian Sea and prepare a report for the upcoming ministerial meeting due to be held in Russia this spring. Moscow will also host The Caspian Sea Littoral States Summit late in summer.

The Caspian Sea is the largest enclosed water body on earth by area, variously classed as the world’s largest lake or a full-fledged sea.

The Caspian Sea Convention will determine the territorial rights of littoral states- Iran, Russia, Kazakhstan, Turkmenistan and Azerbaijan – as well as other matters related to the world’s largest landlocked body of water.

The Caspian Sea legal regime is based on two agreements signed between Iran and the former Union of Soviet Socialist Republics (USSR) in 1921 and 1940. The three new littoral states, established after the collapse of the Soviet Union, have not recognized the prior treaties, triggering a debate on the future status of the sea.

http://www.tasnimnews.com/English/Home/Single/263554

BP Starts Production at West Chirag in Caspian Sea
Wall Street Journal online
Jan. 29, 2014

CaspianOilFieldsLONDON—Oil major BP PLC said Wednesday that production has started at the West Chirag platform of the Azeri-Chirag-Gunashli field in the Azerbaijan sector of the Caspian Sea, completing the Chirag oil project which was sanctioned in 2010.

West Chirag production began from a pre-drilled well called J05 on Jan. 28 and will increase throughout this year as other pre-drilled wells are brought on line, BP said without indicating volumes. However, BP said the new platform has a capacity for 183,000 barrels a day with a gas export capacity of 285 million standard cubic feet a day.

“The startup of Chirag oil project marks a major milestone in the development of the super-giant ACG [Azeri-Chirag-Gunashli field],” Gordon Birrell, BP’s Regional President for Azerbaijan, Georgia and Turkey said.

“To date the ACG field has produced over 2.3 billion barrels of oil and with future continual major investments in new technologies and facilities, like the one we have today started up, it will continue to produce as a world-class reservoir for many decades,”, Mr. Birrell added.

BP is operator of the field with a 35.8% interest. Partners in the field include SOCAR with 11.6%, Chevron CVX -4.14% Corp with 11.3%, Inpex Corp with 11%, Statoil AS STL.OS -1.46% A with 8.6%, Exxon Mobil Corp with 8%, TPAO with 6.8%, Itochu 8001.TO +0.56% Corp with 4.3% and ONGC Videsh Ltd. with 2.7%.

http://online.wsj.com/news/articles/SB10001424052702304428004579350491065104568

BP Seeks ACG Extension to Maintain Output at Largest Azeri Field
Bloomberg News
Jan 29, 2014

BP Plc (BP/) is seeking to extend its oil contract on the Azeri-Chirag-Guneshli field beyond 2024 to allow more investment and sustain output at the largest Azeri deposit after its local partner last year said there weren’t such plans.

The Caspian Sea field produced 32.5 million tons of oil in 2013, down from 32.9 million tons. While the new $6 billion West Chirag platform that started output yesterday will help offset natural decline, BP said at least one more is needed by 2021.

“We are talking to State Oil Co. of Azerbaijan about the next phase,” Gordon Birrel, Azerbaijan, Georgia and Turkey manager, said in Baku, the Azeri capital. “But we have no fixed and agreed plans at this point. This field needs investment and at least one more platform to maintain production.”

West Chirag is estimated to produce about 60,000 barrels a day, or 3 million tons, this year, he said. The platform will have at least 14 wells, with six running this year, Birrel said. It’s the largest and most technologically advanced of the eight current platforms in Azerbaijan’s section of the Caspian Sea, he said. The site has a capacity of 183,000 barrels of oil a day.

http://www.bloomberg.com/news/2014-01-29/bp-seeks-acg-extension-to-maintain-output-at-largest-azeri-field.html

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/

(Why Americans should care about “the rest of the story” in Afghanistan.)

From The Wonders Of Pakistan blog online
24 Nov 2011

“If one looks at the map of the big American bases created [in the Afghan war], one is struck by the fact that they are completely identical to the route of the projected oil pipeline to the Indian Ocean.”

In January 2009, Jaap de Hoop Scheffer, then NATO Secretary General, said, “Protecting pipelines is first and foremost a national responsibility. And it should stay like that. NATO is not in the business of protecting pipelines. But when there’s a crisis, or if a certain nation asks for assistance, NATO could, I think, be instrumental in protecting pipelines on land.”

These comments suggest that NATO troops could be called upon to assist Afghanistan in protecting the pipeline. Since pipelines last 50 years or more, this could auger a very long commitment in Afghanistan.

EURASIA’S PIPELINE TANGLE
by Abdus Sattar Ghazali

On November 14, Pakistan and Turkmenistan signed an agreement to build the $7.6 billion Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline project under which Pakistan will get 1.3 billion cubic feet per day of gas. The agreement was signed during a visit by President Gurbanguly Berdimuhamedov of Turkmenistan to Islamabad.

The trans-Afghanistan pipeline, first proposed in early 1990s, will transport Caspian Sea natural gas from Turkmenistan through Afghanistan into Pakistan and then to India….

The original project started on 15 March 1995 when an inaugural memorandum of understanding between the governments of Turkmenistan and Pakistan for a pipeline project was signed. This project was promoted by Argentinian company, Bridas Corporation.

The U.S. company Unocal, in conjunction with the Saudi oil company Delta, promoted alternative project without Bridas’ involvement. In 1995, Unocal signed an $8 billion deal with Turkmenistan to construct two pipelines (one for oil, one for gas), as part of a larger plan for two pipelines intended to transport oil and gas from Turkmenistan through Afghanistan and into Pakistan. In August 1996, the Central Asia Gas Pipeline, Ltd. (CentGas) consortium for construction of a pipeline, led by Unocal, was formed.

Since the pipeline was to pass through Afghanistan, it was necessary to work with the Taliban. In January 1998, the Taliban regime, selected CentGas over Argentinian competitor Bridas Corporation, and signed an agreement that allowed the proposed project to proceed.

In 1997, representatives of the Taliban are invited to the Texas headquarters of Unocal to negotiate their support for the pipeline. Future President George W. Bush is Governor of Texas at the time. The Taliban appear to agree to a $2 billion pipeline deal, but will do the deal only if the US officially recognizes the Taliban regime. The Taliban meet with US officials.

According to the Daily Telegraph, “the US government, which in the past has branded the Taliban’s policies against women and children ‘despicable,’ appears anxious to please the fundamentalists to clinch the lucrative pipeline contract.”

It was reported that the Taliban met with Enron officials while in Texas. Enron, headquartered in Texas, had a large financial interest in the pipeline at the time.

On April 17, 1998, Bill Richardson, the US Ambassador to the UN, meets Taliban officials in Kabul. (All such meetings were illegal, because the US still officially recognizes the government the Taliban ousted as the legitimate rulers of Afghanistan.) US officials at the time call the oil and gas pipeline project a “fabulous opportunity” and are especially motivated by the “prospect of circumventing Iran, which offers another route for the pipeline.” [Boston Globe, 9/20/2001]

On December 5, 1998, Unocal announces it is withdrawing from the CentGas pipeline consortium, and closing three of its four offices in Central Asia. President Clinton refuses to extend diplomatic recognition to the Taliban, making business there legally problematic.

Interestingly, the 9/11 Commission later concludes that some State Department diplomats are willing to “give the Taliban a chance” because it might be able to bring stability to Afghanistan, which would allow a Unocal oil pipeline to be built through the country. [9/11 Commission, 3/24/2004]

The TAP project was revived less than one month after the 9/11 attacks when US Ambassador Wendy Chamberlin meets (Oct 9, 2001) with the Pakistani oil minister to brief on the gas pipeline project from Turkmenistan, across Afghanistan, to Pakistan, which appears to be revived “in view of recent geopolitical developments.” [Frontier Post – 10/10/2011]

On May 30, 2002, Afghanistan’s interim leader, Hamid Karzai (who formerly worked for Unocal), Turkmenistan’s President Niyazov, and Pakistani President General Musharraf meet in Islamabad to sign a memorandum of understanding on the trans-Afghanistan gas pipeline project.

TAP is consistent with the US declared policy of linking Central and South Asia and diversifying export routes for Turkmen gas.

The proposed 1,680 kilometres pipeline could carry one trillion cubic metres of Turkmen gas over a 30-year period, according to Turkmen Oil and Gas Minister Bayramgeldy Nedirov. But the route, particularly the 735 kilometres Afghan leg, presents significant security challenges.

In January 2009, Jaap de Hoop Scheffer, then NATO Secretary General, said, “Protecting pipelines is first and foremost a national responsibility. And it should stay like that. NATO is not in the business of protecting pipelines. But when there’s a crisis, or if a certain nation asks for assistance, NATO could, I think, be instrumental in protecting pipelines on land.”

These comments suggest that NATO troops could be called upon to assist Afghanistan in protecting the pipeline. Since pipelines last 50 years or more, this could auger a very long commitment in Afghanistan. [Journal of Energy Security, March 23, 2010]

The trans-Afghanistan pipeline (TAPI) agreement has been signed at a time when Washington is pressing Islamabad to abandon the pipeline project to supply Iranian gas to Pakistan.

Washington has never tried to hide its opposition to Pakistan`s plans for importing gas from Iran and has always pressured it to seek alternate options. The purpose has been to isolate Tehran in the region over its nuclear program. Apparently, it was under US pressure that India decided to opt out of the project in 2009. In return, New Delhi successfully secured US cooperation for its civil nuclear power projects in 2008.

In January 2010, the United States asked Pakistan to abandon the pipeline project. If canceling the project, Pakistan would receive assistance from the United States for construction of a liquefied natural gas terminal and importing electricity from Tajikistan through Afghanistan’s Wakhan Corridor. [Times of India – Sept 7, 2009]

On April 12, 2010, Iran announced that it has completed construction of 1,000 kilometers of the pipeline out of the 1,100 kilometers portion on Iranian soil. On this Iranian ambassador to Pakistan said that “Iran has done her job and it now depends on Pakistan”. The construction of the pipeline on Iranian side is on pace to be completed by 2011.

….

According to newspaper reports on 17 June 2011, Iran has given up talks with India on the pipeline and is pursuing the pipeline bilaterally with Pakistan. In July 2011, Pakistani minister for petroleum and natural resources announced that Iran has finished its work on laying the pipeline and Pakistan would start the work for building the pipeline within the next six months.

In November 2010, a Wikileaks cable disclosed that American diplomats had said it was “unlikely that Iran would build a gas pipeline to Pakistan.” Washington opposes the deal because of the economic benefits for Tehran, which has been subject to the United States and international community’s sanctions against Iran. The diplomatic cable noted that the planned pipeline would not move forward because, “the Pakistanis don’t have the money to pay for either the pipeline, or the gas.” [Wikipedia]

The 2,775-kilometre (1,724 mi) pipeline will be supplied from the South Pars field. It will start from Asalouyeh and stretch over 1,100 kilometres (680 mi) through Iran. In Pakistan, it will pass through Balochistan and Sindh. In Khuzdar, a branch would spur-off to Karachi, while the main pipeline will continue towards Multan. From Multan, the pipeline may be expanded to India.

Commenting on the TAPI agreement, Pakistan’s leading newspaper The Nation said: “Pakistan seems to have succumbed to US pressure and sacrificed its national interest in pursuit of the American desire to bypass Iran.”

The paper said, apart from the relative merits of the projects, one of the biggest services the present government can perform for the USA is to give the impression that the Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline is in any way a substitute for the Iran-Pakistan-India (IPI) gas pipeline.

The Nation emphasized that Pakistan needs both the projects if it is to meet the gas shortages that have already hit the country in the past, and which will further worsen, reaching new heights this winter.

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The writer Abdus Sattar Ghazali is Executive Editor of the online magazine American Muslim Perspective: http://www.amperspective.com email: asghazali2011 (@) gmail.com

http://wondersofpakistan.wordpress.com/2011/11/24/the-politics-of-gas-pipelines-in-asia/#more-25322

(Did you ever wonder about scriptures suggesting Russia will come against Israel in the last days? Here are some clues as to why that might be: Tamar, Dalit and Leviathan Mediterranean gas fields. Be sure to read both articles below.)

Russian President Medvedev to visit Israel in mid-January
DEBKAfile December 15, 2010

Russian President Dmitry Medvedev’s first visit to Israel in mid-January, part of a Middle East tour, is intended to signify a major switch in Kremlin Middle East policy to warmer relations with Israel and correspondingly less intense ties with Iran, Syria and the radical Palestinian Hamas….

Furthermore, the Russians have got two bids in play for a slice of the as-yet untapped Mediterranean gas. While offering to partner Lebanon in exploring the oil and gas potential opposite its shores earlier this month, Debkafile’s sources report that the Russian energy giant Gazprom sent secret envoys to Tel Aviv at the same time.

They came to discuss investment opportunities with the Israeli firms holding the concessions for the Tamar, Dalit and Leviathan Mediterranean gas fields off the Israeli shore and a possible partnership in Israel’s Ashkelon-Eilat oil and gas pipelines.

According to our sources, Russian energy experts calculate that Israel’s offshore gas reserves, currently estimated at about 25 trillion cubic feet, are in fact much bigger, and maintain they could be better explored with Russian professional assistance. Leviathan is seen as the most promising of the three strikes….

Moscow sent five messages to Jerusalem:

1. For the purchase of military UAVs for the Russian army – for which an agreement will be signed – Moscow will guarantee to withhold advanced weapons, such as the sophisticated S-300 interceptor missile systems, from Iran and Syria. By this move, the Medvedev-Putin administration is drawing a line limiting Russia’s vital contribution to their military buildup and upgrade.

2. Moscow shares Israel’s view that any hi-tech Russian military hardware sold to Damascus or Tehran would eventually reach Hizballah. The Russians have no wish to upgrade Hizballah’s arsenal and therefore has a further incentive for keeping this weaponry out of Iranian and Syrian hands.

3. The Kremlin has recently shifted ground on the Palestinian issue and is no longer willing to automatically endorse Palestinian demands of Israel. Unlike Palestinian negotiators headed by Mahmoud Abbas, Moscow is prepared to look at interim solutions for the Palestinian-Israel dispute. The Russians say the Palestinians are aware of the new winds blowing in Moscow….

4. The Russians ask Israel to take note of another change in its favor: Hamas’s Damascus-based leader Khaled Meshaal is no longer welcome in Moscow.

5. Moscow is seeking to exploit the deepening strategic ties between Israel and Greece to jump aboard their plans to build an underwater gas pipeline linking Greece to the Israeli Mediterranean port of Ashkelon. This would link up with the existing Ashkelon oil and gas pipeline to Eilat, Israel’s Red Sea port.

Russian energy strategists are eyeing the planned and existing segments of this route with great interest, having calculated that the quickest and cheapest outlet for marketing Russian gas to the Far East is through Eilat.

Israeli leaders, President Shimon Peres and Prime Minister Binyamin Netanyahu have high hopes of the Medvedev visit.

http://www.debka.com/article/20457/

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Moscow, Ankara move in on Lebanon’s offshore energy potential
DEBKAfile December 8, 2010

Photo: An effusive Kremlin welcome for Lebanese PM Hariri. With his sharp instincts for chances in the field of energy, Russian Prime Minister Vladimir Putin was stirred into discreet action by Israeli entrepreneurs’ discovery in the past year of a gas bonanza – three fields, dubbed Tamar, Dalit and Leviathan, off Israel’s Mediterranean coast, Debkafile’s Moscow sources report.

Their currently estimated reserves of 25 trillion cubic feet would more than cover Israel’s energy needs and enable it to become a gas exporter, revolutionizing an economy which has developed despite a paucity of natural resources.

Neither did Putin miss Beirut’s claim that Israel was “looting” Lebanese gas resources, or that Lebanese Prime Minister Saad Hariri had encountered a polite rejection when he travelled to Nicosia on Oct. 21 to ask Cypriot President Dimitris Christofias for help in mapping the borders of oil and gas fields in the Mediterranean.

Moscow accordingly went into action by inviting Hariri for a visit, which took place Nov. 16-17. With his back to the wall in a life-and-death struggle to save his government from falling into the hands of Hizballah, the Lebanese prime minister was granted the rare honor of an elaborate welcome by both Putin and President Dmitry Medvedev.

The Russian prime minister then pitched into his spiel: Moscow could help Lebanon place itself on the map of oil and gas fields and pipelines in the eastern Mediterranean. But to exploit its oil and gas wealth under the sea, Lebanon needed Russia as energy partner and provider of funds, equipment and skilled labor.

Russia would reciprocate with heavy investments in the Lebanese economy that would restore Beirut to its former prestige as financial capital of the Middle East and an assured supply of advanced weapons at token prices to secure those investments.

None of this prevented the Russian prime minister from sending a delegation to Tel Aviv last week to sound out Israel’s gas new tycoons for opportunities. On offer were Russian investments in funds and equipment and a Russian-Israeli partnership in laying the gas pipeline which Israel and Greece are planning as part of their evolving strategic alliance.

The Lebanese prime minister left Moscow with an understanding in his pocket on three points. As a mark of Russian goodwill, he was promised the gift of six MI 24 helicopters 31 T-72 tanks, 36 130 mm cannons complete with half a million shells and thirty thousand artillery shells – an unprecedented donation to a country outside Moscow’s sphere of influence. Their understanding extended to three key areas:

1. They would discuss big Russian firms building a number of gas-powered electricity plants in Lebanon, backed by Kremlin guarantees and financing – against a Lebanese guarantee to purchase their output over a 30-year period.

2. The Russian-built Arab Gas Pipeline Project Phase II, designed to bring gas from Egypt and run through Jordan, Syria, Lebanon and Turkey, would grow a Lebanese branch. On Dec. 5, a Kremlin official said: “We want to study a possibility of gas shipment from Syria to Lebanon, for example, by using the Arab Gas Pipeline capacity.”

3. Moscow offered to build three nuclear power plants in Turkey.

The second understanding was the real reason for Turkish Prime Minister Tayyip Erdogan’s visit to Beirut Wednesday, Nov. 24 and his talks with Hariri. Erdogan now has a new interest in defusing the tensions in Lebanon and keeping Hariri in power.

Debkafile’s military sources say that, in addition to his abiding interest in energy, Vladimir Putin keeps his eye on the big Russian naval base going up in Tartous, Syria. As headquarters of the Russian Black Sea and Mediterranean fleets, this base will also guard Moscow’s investments and holdings in gas and oil fields in the Mediterranean.

http://www.debka.com/article/20435/

(Reprinted from PressTV online article, 15 Feb 2010.)

The Islamic Republic of Iran has started drilling its first exploratory well in the Caspian Sea to search for oil in the resource-rich body of water.

“The Amir-Kabir semi-submersible drilling rig has started exploration drillings in the Caspian Sea. It will drill the country’s first exploratory well at a depth of 1,550 meters under the seabed,” North Drilling Company Managing Director Hedayatollah Khademi told the Mehr News Agency on Saturday.

In light of the great potential of the region, there is a very good possibility that the Amir-Kabir (formerly known as Iran-Alborz) semi-submersible drilling rig will help find new reserves of crude oil in the Caspian Sea, he added.

The drilling rig weighs 14,000 tons without its attachments and will facilitate exploration in deep waters in the southern part of the Caspian Sea.

According to estimates, the southern part of the Caspian Sea holds at least 32 billion barrels of oil reserves. Iran’s exploration efforts have so far led to the discovery of 46 oil fields in the Caspian Sea.

Iran has the world’s third-largest proven reserves of crude oil, mainly located in the southwest of the country and offshore in the Persian Gulf. (emphasis added)

http://www.presstv.ir/detail.aspx?id=118561&sectionid=351020103

Why does this matter enough for me to reprint it here? Because of where the Caspian Sea is, who the countries are that surround it, and what they are doing there as we speak. See my earlier articles about the Caspian Sea and oil.

(Bette: I doubt if I’ve ever agreed with anything this man has said in the past, but he may be right about one reason for the world’s interest in his region… gas and oil reserves from the Caspian Sea, especially considering which countries control them.)

Fars News 28 Jan 2010

TEHRAN (FNA)- Iranian President Mahmoud Ahmadinejad blasted the world arrogant powers for their attempts to dominate the resources in the Middle Eastern countries.

“The arrogant powers are after the precious resources of the Middle East region and that is why they interfere in this region’s affairs,” Ahmadinejad said… Referring to the arrogant powers’ meddling in Iran’s post-election events, President Ahmadinejad said, “The main objective of their interference and conspiracies was to dominate the Middle East region as it is the center of the world’s energy.”

“Middle East is the cradle of the world’s major civilizations and the crossroads of the world’s political relations. It is also the rich source of world’s energy and that is why the arrogant powers are to dominate it,” he added.

http://bit.ly/9Vn9RO

The decline of the almighty dollar
Armstrong Williams, The Hill 15 Dec 2009

… the recklessness of our current fiscal policy is causing other sophisticated global players to get fed up…

BRIC countries (Brazil, Russia, India and China), let me introduce BRIC-plus-1 and rename it CRIBS, (adding South Africa) is already looking to create the next largest world currency — one that will be pegged to oil.

This will be an extreme threat to the dollar, because trading oil in dollars is one thing that gives that currency much of its value.

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