Tag: BP

Major oil companies withdrawing from Southern Africa

BP is no longer trading in Kenya, Tanzania, Zambia, Zimbabwe, Malawi, Namibia, Swaziland, Lesotho, Botswana or Malawi.

In some of these countries had a BP presence for almost a century. Were all these BP associate companies suddenly unprofitable or was something deeper at work?

The sub-Saharan oil industry has registered the withdrawal from the region of major oil companies.

A clue could be the recent spat between Chevron and a new oil industry entrant in Cape Town in the shape of a black economic empowerment company called Burgan. Chevron claims it threatens the viability of their refinery with its ability to import, store and sell motor fuels.

Chevron’s complaints go further. Probably speaking for the other South African crude oil refiners, it points bitterly to the refusal or delay, by the government, to allow a “cost recovery mechanism” to make it worthwhile to upgrade local refineries to produce the higher quality fuels demanded by motor manufacturers.

Chevron argues that our regulated oil industry is a strategic asset with sacred status. It believes nothing should be changed without industry approval.

A more powerful reason for a reluctance to invest in new plant without a sweetener from the Treasury may be found in what has been happening in Saudi Arabia and India. In both countries there are now new and massive crude oil refineries producing, and selling to all comers, large volumes of motor fuels and other petroleum products.

The nearest customers for production surpluses of these huge refineries are in Africa, particularly those on its eastern seaboard – South Africa being the biggest.

The economies of scale is deadly. Saudi Arabia can undercut any refinery far from crude oil sources – such as those in Durban, Cape Town, and Gauteng. It can also produce the new higher quality fuel. Local refineries cannot do so.

South Africa’s crude oil refining capacity is 553 000 barrels a day. Saudi Arabia production is huge by comparison. Estimates are 3 million barrels a day and upwards. Some analysts (The Wall Street Journal) expect Saudi Arabian refining capacity to rise to 8 million barrels a day within a decade. Others predict 12 million barrels a day within 10 years.

Not only Saudi refineries pose a severe threat to our local ones. There are large ones in India too. In particularly the one recently completed by Reliance. It alone can produce more that all six of our refineries (including Sasol) combined. It has a reported capacity of 1.2 million barrels a day. It is the world’s largest.

Source: IOL

Massive oil reserves off Scotland’s west coast to be examined

Massive oil reserves off of the west coast of Scotland are to be examined after the Scottish Government announced it is to set up a review along with top academics and experts.

The area which includes the north and west coast of Shetland down to through the Hebrides and into the Firth of Clyde will be the subject of a review in order to determine the true scale of the oil and gas reserves.

According to the Sunday Post, the Scottish Government will, this Autumn, co-host a workshop with Heriot-Watt University’s Institute of Petroleum Engineering to examine the potential for conventional oil and gas resources in the waters off the west coast.

The announcement follows increasing speculation that a massive field to the west of Shetland has been discovered.

The field, located in the Greater Clair area around the islands, has already witnessed a huge investment from BP with the company set to employ advanced techniques in order to maximise production output. A promotional video for the Clair field has explained how the company plans a “major transformation” to the field which BP itself describes as a “truly giant field”.

The company estimates that the field will begin production in 2016, and be able to produce over 100,000 barrels of oil per day.

Commenting last month, BP chief executive Bob Dudley said: “We remain very enthusiastic about Clair Ridge – appraisal wells are looking good. It is helping us to define the structure out there.

“[Clair Ridge] will be a project once we get it on in the next few years that has the potential to produce until 2050.”

Rumours that a massive new oil boom might be imminent grew when UK Prime Minister David Cameron made an unannounced visit to Shetland three weeks ago.

Islanders were surprised when the PM stepped off of a plane on one of the islands airfields.

The 1600 mile round trip from London had been kept secret from journalists. Downing Street refused to be drawn on why the visit had not been publicised beforehand.

Speculation that there is massive oil reserves around Shetland follow revelations that there may be huge untapped reserves under the Firth of Clyde.

It recently emerged that surveys carried out in the seventies found evidence of significant reserves of oil, but further drilling was blocked by the Ministry of Defence because the waters were crucial to the movement of nuclear submarines.

There are also claims that fields to the West of Lewis are not being developed due to objections from the MoD as the area is used for war games involving nuclear subs as well as for the test firing of missiles from the Uist range.

At a recent energy meeting in Stornaway, local people spoke of exploratory work conducted over several decades to the West of the Western Isles. Those who had been involved in the surveys were reporting back locally the there was a massive oil field there which “comes right up to the shore”.

Speaking to the Sunday Post, John Howell, Professor of Petroleum Geology at the University of Aberdeen, said: “The offshore area to the west of Scotland includes several major basins with hydrocarbon potential.

“While over 3,000 exploration wells have been drilled in the North Sea and West of Shetland, only around 20 have been drilled to the west of the Scottish mainland.

“This provides significant future potential which can only be appraised with detailed scientific study.”

Energy minister Fergus Ewing said: “Stimulating oil and gas activity to the west of Scotland could create employment and further increase the longevity of the industry in the country.

“Any activity will be supported by Scotland’s world-class indigenous supply chain with 40 years of experience in the North Sea.”

Source: http://newsnetscotland.com/

Sanctions against Russia would affect Exxon and BP

The U.S. and European Union are poised to halt billions of dollars in oil exploration in Russia by the world’s largest energy companies in sanctions that would cut deeper than previously disclosed.

The new sanctions over Ukraine would prohibit U.S. and European cooperation in searching Russia’s Arctic, deep seas or shale formations for crude, according to three U.S. officials who spoke on condition of anonymity because the measures haven’t been made public. If implemented, they would affect companies from Dallas to London, including Exxon Mobil Corp. and BP Plc.

EU ambassadors met today and will resume deliberations tomorrow in Brussels on whether to trigger added sanctions or wait longer to see if a cease-fire holds between Ukraine and pro-Russian separatists and if Russia backs moves toward a longer-term agreement.

Once the EU implemented the new ban on sharing energy technology and services, the U.S. would follow suit with a similar package, including barring the export of U.S. gear and expertise for the specialized exploration that the Russians are unequipped to pursue on their own, the U.S. officials said.

EU governments agreed on these oil-related sanctions on Sept. 8 as part of a wider package of measures intended to hobble Russia’s finance, defense and energy industries, pending evaluation of the cease-fire declared in Ukraine last week, according to two European officials who also spoke on condition that they not be named.

Source: Bloomberg

BP, Siemens, Renault face downturn on EU sanctions

BP Plc (BP/), Siemens AG (SIE) and Renault SA (RNO) are among European companies preparing for a downward turn in their Russian business following the European Union’s decision to impose its widest-ranging sanctions yet over President Vladimir Putin’s involvement in eastern Ukraine.

EU leaders announced plans yesterday to restrict the export to Russia of equipment to modernize the oil industry and forbid the sale of machinery, electronics and other civilian products with potential military uses. New arms contracts with Russia are also not allowed.

The sanctions will have a direct impact on companies like Siemens, which may no longer be able to sell oil equipment to Russia, and an indirect effect on many others like Renault, which expects the country’s auto market to contract more than 10 percent in 2014 as consumers hold back purchases. BP, owner of 20 percent of state-backed OAO Rosneft (ROSN), yesterday warned of risks to its profit and production due to the crisis.

“In Europe, for some companies this is becoming a major problem, and they can see it becoming an even bigger one,” said Andrew Kenningham, an economist at research firm Capital Economics. “The long-term impact of a standoff, if it continues, is clearly very bad for business confidence and future investment in Russia.”

Despite targeting oil production, the EU sanctions have steered clear of the natural-gas sector — leaving unscathed so far companies like BASF SE, the world’s biggest chemical producer, which gets about half its natural gas from state-controlled Gazprom, and other utilities like E.ON AG (TAG1Y) and RWE AG. On average, EU countries get 24 percent of their gas from Russia, according to Deutsche Bank — meaning that confronting Gazprom could result in supply cut-offs.

Source: Bloomberg

First US commercial drone licence to BP

Authorization comes as FAA moves to integrate commercial drones into American skies

The Federal Aviation Administration announced Tuesday it has granted oil giant BP the first-ever approval to fly drones for commercial purposes over U.S. land.

Manufactured by AeroVironment, the drone is slated to conduct aerial surveillance over Prudhoe Bay in Alaska’s Northern Slope. The Bay is home to the largest oil field in North America, and is plagued with routine spills, environmental damage, and air pollution.

BP and AeroVironment launched the first drone flight on Sunday under a license that expires in five years, according to AeroVironment. The drone, a “Puma AE,” is about 4.5 feet long with a wingspan of 9 feet, according to the FAA.

Based in Monrovia, California, AeroVironment has been slammed as a war profiteer because it is a major supplier of small drones to the U.S. military, including the Switchblade, which conducts surveillance and can transform into a small bomb.

The green light for BP follows the FAA’s temporary approval last year of drone flights over Arctic waters in preparation for fossil fuel exploration.

The authorization is the latest sign that oil and gas companies are leading the way in commercial drone use. Last year, the FAA granted ConocoPhillips authorization to fly drones over Arctic waters for the purpose of drilling for fossil fuels.

The drone license could be a sign of what’s in store for the future, as the FAA moves to implement orders from Congress to integrate drones into U.S. airspace by 2015.

Last December, the FAA launched a drone testing program at public institutions in six states across the U.S. as part of this plan.

Transportation Secretary Anthony Foxx declared in a statement about authorization for BP drone flights, “These surveys on Alaska’s North Slope are another important step toward broader commercial use of unmanned aircraft.”

 

Source: Common Dreams

Did Mandela’s friend supply chemical weapons to Syrian rebels?

Prince Bandar bin Sultan and Nelson Mandela
Prince Bandar bin Sultan and Nelson Mandela

by Terry Crawford-Browne

REPORTS from Syria by Jordanian journalists allege that it was Prince Bandar bin Sultan of Saudi Arabia who distributed those chemical weapons to the Syrian rebels.( Here he is shown with that other unrepentant terrorist)

If true, it indicates the chemical attack in Damascus to have been a false-flag operation by the American war business.

This would be entirely in keeping with Prince Bandar’s history of organising the Afghan mujahideen in the 1980s, the Iran-Contra weapons exchanges, Libya in 2011, the suppression of the Shia uprising in Bahrain, Saudi support for the coup d’etat in Egypt and support for Syrian rebels.

Other reports confirm that Prince Bandar also went to see Russian President Vladimir Putin last month and offered to buy $15bn worth of Russian weapons provided Mr Putin abandoned Syrian President Bashar al-Assad. Mr Putin gave him short shrift.

Prince Bandar was not only the Saudi ambassador in Washington for 22 years and friends of Ronald Reagan and the Bush family, but he also negotiated the 1985 £43bn Al-Yamamah weapons deal with Margaret Thatcher, which Tony Blair renewed in 2007 with the Al-Salaam weapons deal.

When the British Serious Fraud Office investigated the bribes which BAE Systems paid him, Prince Bandar allegedly threatened blood in the streets of London.

Mr Blair squelched the investigation citing “national security.” The Guardian newspaper revealed a couple of months later how BAE with collusion of the British government had laundered bribes to Prince Bandar of over £1bn through Riggs Bank in Washington DC and other US banks.

Most importantly, Prince Bandar and Ms Thatcher negotiated the Al-Yamamah deal under the British Official Secrets Act, meaning that it cannot be investigated in Britain.

Saudi Arabia ships thousands of barrels per day of oil consigned to the Bank of England, which is then distributed to Shell and BP.

Over the years a surplus has developed, which is guesstimated to be worth over $150bn. Its purpose is a) to guarantee British and US support for the Saudi royal family against domestic insurrection and b) to fund covert destabilisation of resource-rich countries in Asia and Africa under the guise of the war on terror.

Having targeted Afghanistan, Iran, Iraq, Yemen, Somalia, Libya and other countries over the years, Syria and Egypt are Prince Bandar’s current targets. When will SA be targeted by the American and British “war business” given our country’s mineral wealth?

Saudi Arabia made lavish donations to the African National Congress. Prince Bandar was also the only foreigner present at Nelson Mandela’s secret wedding to Graca Machel, and was a frequent visitor to SA when the arms deal was being negotiated.

BP to invest R5 billion in South African operation

A BP refinery

BP will invest nearly R5 billion in South Africa as a sign of its faith in the direction in which the country is heading, the energy company said on Tuesday.

“With the improving investment climate, especially policy stability… being presented in Southern Africa, BP has decided to invest significantly for the benefit of all of our stakeholders,” British Petroleum (BP) refining and marketing chief executive Iain Conn told reporters in Johannesburg.

“It gives me great pleasure to announce that BP will be investing in excess of R5bn in Mozambique and South Africa over the next five years, commencing in 2013, which will be new plant and infrastructure upgrades.”

It would be funded from BP cash reserves. Conn said R800 million would be invested in Mozambique and R4.7bn in South Africa.

“This investment is designed to improve safety, customer experience, operational efficiency, help with government to improve energy security, and enable the transition towards cleaner fuels.”

Conn said R2.5bn would be invested in upgrading refinery infrastructure at the SAPREF refinery, its joint venture with Shell in KwaZulu-Natal.

“Most of these funds in the refinery are to be utilised to promote South Africa’s clean fuels requirement,” he said.

In February, Finance Minister Pravin Gordhan announced a support mechanism for biofuels and an upgrade of refineries to encourage South Africa to produce cleaner fuels.

“We anticipate that the remuneration mechanism will be finalised shortly, as we have already started to invest in the project and our intent is to be ready to produce clean fuels in 2017,” Conn said.

Over R1bn would be invested in terminals in South Africa and Mozambique.

The balance of the investment would be in the “retail network”. Conn said BP had partnered with Pick ‘n Pay and 120 Pick ‘n Pay express stores would be opened in the next five years.

He said the investment was approaching five percent of all the capital which went into the marketing, refining, and chemical business of BP.

“We are in about 70 countries, and South Africa is going to end up with nearly five percent of the money. I think that tells you something.”

BP was encouraged by development in South Africa and Mozambique.

“In South Africa, I am conveying our appreciation to the government for adopting the National Development Plan as the blueprint for tackling the many challenges that continue to face this great nation.”

Conn said BP was committed to transformation and the need to create more jobs and build entrepreneurs in South Africa.

“This is part of our on-going efforts to be a good corporate citizen as we pursue our business objectives in all the markets in which we operate.”

Conn said BP was not considering fracking for shale oil and gas in South Africa.

“We have been fracking since the 1940s. BP is in shale, but not here,” he said.

“We are looking at shale in a number of places in the world, including China. We have not as yet prioritised shale in South Africa.”

He said fracking needed to be done safely and its impact on the environment needed to be considered.

Fracking, or hydraulic fracturing, is the process of extracting natural gas from shale rock layers deep within the earth.

Mineral Resources Minister Susan Shabangu said last year that five companies had applied in 2010 to explore for shale gas in the Karoo.

Energy department director general Nelisiwe Magubane said on Tuesday government “endorsed and welcomed” BP’s investment.

BP’s SAPREF refinery is co-owned with Royal Dutch Shell. South Africa’s oil refineries process 497,000 bpd, with SAPREF contributing 36 per cent of this total, according to the South African Petroleum Association’s website.- Sapa & Praag