Tuesday, August 7, 2018

Pakistan: Exxon Is Close To Making A Mega Oil Discovery



ExxonMobil is close to discovering huge oil reserves in Pakistan near the border with Iran, and those reserves could even be larger than the oil reserves of Kuwait, the Pakistani Minister for Maritime Affairs and Foreign Affairs, Abdullah Hussain Haroon, said over the weekend.

Addressing business leaders at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Haroon said that Exxon had drilled for oil close to the Iranian border and that the U.S. supermajor was optimistic about the oil find.

“Foreign investors are interested in coming to Pakistan, provided we manage to meet their standards and attract them to make investment,” the Pakistani minister said in a press release published by the FPCCI.

According to Arab News, if the oil discovery in Pakistan turns out to be as large as expected, the country would rank among the world’s top ten oil producing countries, ahead of Kuwait.
Kuwait’s total proved oil reserves were 101.5 billion barrels at the end of 2017, according to the BP Statistical Review of World Energy 2018. The Kuwaiti reserves account for 6 percent of the world’s total proved oil reserves, putting Kuwait among the top ten countries in terms of largest oil reserves per country after Venezuela, Saudi Arabia, Canada, Iran, Iraq, and Russia.

In Pakistan, ExxonMobil signed an agreement in May this year to take a 25-percent working interest in the Indus Block G offshore Pakistan, where the other partners in the block are Italy’s major Eni and Pakistan’s Government Holdings Pvt Ltd and Oil and Gas Development Company Limited (OGDCL).

According to Arab News, Pakistan currently meets just 15 percent of its petroleum demand with domestic crude oil production, while 85 percent of its demand is met with imports. With the high imports, and the higher oil prices in recent months, Pakistan faces a large current account deficit and spends a substantial portion of its foreign exchange reserves on importing oil.

By Tsvetana Paraskova for Oilprice.com

Monday, August 6, 2018

Venezuela Arrests 6 Over Drone Explosions In ‘Assassination Attempt’ On President

https://i.dailymail.co.uk/i/newpix/2018/08/05/00/4ED65BDA00000578-0-image-a-19_1533425041395.jpg


CARACAS (Reuters) - Venezuelan authorities said on Sunday they have detained six people over drone explosions the day before at a rally led by President Nicolás Maduro, as his critics warned the socialist leader would use the incident to crack down on adversaries.
The suspects launched two drones laden with explosives over an outdoor rally Maduro was holding in downtown Caracas to commemorate the National Guard, Interior Minister Nestor Reverol said. One was “diverted” by security forces while the second fell on its own and hit an apartment building, Reverol said.
The attack highlights Maduro’s challenges in maintaining control over the OPEC nation, where widespread food and medicine shortages have fueled outrage and despair everywhere from hillside slums to military barracks.
“These terrorist acts represent a slap in the face to the expressed desire of the President of the Republic, Nicolas Maduro, for national reconciliation and dialogue,” Reverol said in a statement read on state television.
State television footage of the rally showed Maduro startled by what appeared to be an explosion and footage later panned to soldiers lined up on a boulevard who chaotically broke ranks in what appeared to be a reaction to a second blast.
The president later described the attack, which injured seven soldiers, as an assassination attempt.
One of the suspects had an outstanding arrest warrant for involvement in a 2017 attack on a military base that killed two people, Reverol said, an incident that followed four months of anti-government protests.
A second suspect had been detained during a wave of anti-Maduro protests in 2014 but had been released through “procedural benefits,” Reverol said, without offering details.
He did not name the suspects.
The arrests suggest the attack was less a military uprising than an assault led by groups linked to anti-Maduro street protesters, dubbed “The Resistance,” who have led two waves of violent demonstrations that left hundreds dead.
That is consistent with the shadowy group that claimed responsibility for the attack, The National Movement of Soldiers in T-Shirts, whose website says it was created in 2014 to bring together different groups of protesters.
Reuters was unable to independently confirm the involvement of the group, which did not respond to requests for comment on the arrest announcements, or identify any of its members.

‘I SAW THE LITTLE PLANE’

Bolivar Avenue of downtown Caracas, where the incident took place, was calm on Sunday.
Joggers and cyclists were taking up two of the lanes that are traditionally used for weekend recreation. The stage where Maduro spoke had been removed.
Witnesses said they heard and felt an explosion in the late afternoon, then saw a drone fall out of the sky and hit a nearby building.
“I heard the first explosion, it was so strong that the buildings moved,” said Mairum Gonzalez, 45, a pre-school teacher. “I went to the balcony and I saw the little plane ... it hit the building and smoke started to come out.”
Two witnesses said they later saw security forces halt a black Chevrolet and arrest three men inside it.
The security forces later took apart the car and found what appeared to be remote controls, tablets and computers, said the two, who identified themselves as Andres and Karina, without giving their last names.
Opposition critics accuse Maduro of fabricating or exaggerating security incidents to distract from hyperinflation and Soviet-style product shortages.
Leopoldo Lopez, formerly mayor of Caracas’ district of Chacao, for example, is under house arrest for his role in 2014 street protests that Maduro described as a coup attempt but his adversaries insisted were a form of free expression.
“We warn that the government is taking advantage of this incident ... to criminalize those who legitimately and democratically oppose it and deepen the repression and systematic human rights violations,” wrote the Broad Front opposition coalition in a statement published on Twitter.
Maduro’s allies counter that the opposition has a history of involvement in military conspiracies, most notably in the 2002 coup that briefly toppled socialist leader Hugo Chavez.
“I have no doubt that everything points to the right, the Venezuelan ultra-right,” Maduro said on Saturday night. “Maximum punishment! And there will be no forgiveness.”
Maduro, who blames the country’s problems on an “economic war” led by adversaries, during the course of his five-year rule has often announced having foiled military plots against him that he says are backed by Washington.
U.S. national security adviser John Bolton told Fox News in an interview on Sunday that the United States was not involved in the blast.
(Additional reporting by Alexandra Ulmer,; Editing by Grant McCool and Bill Trott)

Friday, August 3, 2018

Nigerian pirates - still a major threat



Nigerian pirates have kidnapped 35 seafarers from vessels in the Gulf of Guinea (GoG) so far this year, according to security firm EOS Risk Group in a report. 
 
This was disclosed in the group’s half yearly review of Nigerian piracy activity in the GoG.
 
Nigeria continues to be the world’s epicentre for piracy activity. From January through June 2018, EOS recorded 34 Nigerian pirate attacks on merchant and fishing vessels in the GoG. These attacks resulted in the kidnap of 35 seafarers for ransom and the hijacking of several vessels.
 
“Most concerning this year has been the resurgence of ‘petro-piracy’, involving the hijacking of tankers for oil theft,” said Jake Longworth, EOS Risk senior intelligence analys. “The return of petro-piracy has been accompanied by an associated increase in the geographical reach of Nigerian pirate gangs, leading to attacks in the waters of Benin and Ghana.”
 
Following a lull in piracy activity off Benin since 2012, EOS recorded seven pirate attacks in the waters of Nigeria’s western neighbour in the first half of 2018. The attacks involved several successful tanker hijackings, one of which resulted in the loss of 2,000 tonnes of product.
 
Nigerian pirates also operated in Ghanaian waters in April, kidnapping five seafarers from two vessels. 
 
Longworth said that the main threat is still found off the restive Niger Delta, specifically on the approaches to ports and oil terminals in the vicinity of Port Harcourt. “95% of attacks we recorded in Nigerian waters occurred near Bonny Island, within 60 nautical miles of the shore. Pirates operating in these waters are focussed on the kidnap of seafarers for ransom.”
 
It was in this area that heavily armed Nigerian pirates kidnapped 11 seafarers from a Dutch general cargo vessel in April. According to EOS, it was the highest number of hostages taken by a Nigerian pirate group in a single attack.
 
Steven Harwood, EOS head of special risks, which covers kidnap for ransom response, said there were two main pirate gangs in Nigeria, both employing around 16 full time pirates. “One is located in the creeks near Yenagoa, Bayelsa State and the other around Abonnema, Rivers State. Both gangs are in communication and sometimes sub-contract the physical hostage taking to other criminal groups.”
 
EOS warned that instability in the Niger Delta is likely to increase in the run up to Nigeria’s 2019 general elections, which could result in a spike in piracy activity. “Since the turn of the century, this pattern has been visible in Nigeria ahead of major election periods, evidence of the complex links between piracy and political conflict in the Niger Delta.”
 
To mitigate the risk, EOS recommended that Masters implement Global Counter Piracy Guidance (GCPG) measures and familiarise themselves with the ‘Guidelines for Owners, Operators and Masters for protection against piracy in the Gulf of Guinea region – version 3, June, 2018’.
 
Where additional protection is required, shipping companies may require armed escort vessels and embarked guards where domestic law permits, EOS said.

Thursday, August 2, 2018

Iran just heated up tensions with Trump in a major show of force to practice closing the Strait of Hormuz

A military personnel participates in the Velayat-90 war game on Sea of Oman near the Strait of Hormuz in southern Iran December 28, 2011

  • Iran is reportedly expected to launch a major military exercise in the Persian Gulf intended to show it can close the Strait of Hormuz.
  • Iran has been threatening to close the Strait of Hormuz in response to President Donald Trump's threats to sanction countries that import Iranian oil.
  • While the impending large Iranian military exercise has US officials concerned, experts believe Tehran is most likely bluffing that it would ever close the strait.

Iran is expected to launch a major military exercise in the Persian Gulf intended to show it can close the Strait of Hormuz, according to CNN, citing two US officials.

"We are aware of the increase in Iranian naval operations within the Arabian Gulf, Strait of Hormuz, and Gulf of Oman," Capt. William Urban, a spokesman for Centcom, said in a press statement. "We are monitoring it closely and will continue to work with our partners to ensure freedom of navigation and free flow of commerce in international waterways."

"We also continue to advocate for all maritime forces to conform to international maritime customs, standards, and laws," Urban added.

The Strait of Hormuz is a sea passage into the Persian Gulf between Iran and Oman, through which about 30% of the world's oil supply passes.
Hassan Rouhani
Iran is rejecting President Donald Trump's offer to hold talks.
Lisi Niesner/Reuters
President Donald Trump has lately been in a war of words with the leaders of Iran.

In June, Trump threatened sanctions on countries that purchase oil from Iran, to which Tehran responded by threatening to shut down the Strait of Hormuz.

Trump, Iranian President Hassan Rouhani , and even a powerful Iranian general, Maj. Gen. Qassem Soleimani , have also been bickering back and forth over the past couple of weeks.

CNN reported that US officials viewed the expected Iranian military exercise as alarming for three reasons: It comes as rhetoric between the two nations heats up, it will be a larger exercise than previous ones, and Tehran usually holds such exercises later in the year.

The US thinks the Iranian military exercise will include about 100 naval vessels, most of which are small boats, as well as air and ground forces, CNN reported.

Iran has repeatedly used small fast-attack craft to harass US Navy warships over the past several years.
iran irgc navy fast attack craft
Iran's fast-attack craft, the type repeatedly used to harass US Navy ships.
Fars News Agency Photo via USNI News
Nevertheless, these Iranian threats are most likely a bluff.

"In the event Iran choose to militarily close the Strait of Hormuz, the US and our Arabian Gulf allies would be able to open it in a matter of days," retired Adm. James Stavridis previously told CNBC. 

And Iran most likely knows this, prompting the question of whether Iran has other intentions.

James Jeffrey, a former US ambassador to Turkey who now serves as an expert at the Washington Institute, previously told Business Insider that Tehran was bluffing about closing the Strait of Hormuz to rattle markets and raise the price of oil.

"They're doing this to spook consumers," Jeffrey said.

Venezuela - Escape from a Failed State | DW Documentary

Shot at by police in Venezuela

Wednesday, August 1, 2018

Venezuela is the clear global leader in oil reserves

https://www.upi.com/Energy-News/2018/07/31/Venezuela-is-the-clear-global-leader-in-oil-reserves/9251533031601/

While the United States is the production leader, its reserves are only 10 percent of what Venezuela has, a report from Italian energy company Eni found.
 
 
While the United States is a global oil production leaders, its total reserves pale in comparison to Venezuela's, an annual report from Italian energy company Eni found. File Photo by Lilac Mountain/Shutterstock.

July 31 (UPI) -- An annual review of energy trends from Italian energy company Eni found the United States is a "game changer," though its Venezuela with the largest reserves.

In a report running nearly 90 pages, the Italian company's 17th annual review found total oil reserves declined 0.2 percent last year in part because of declines in some members of the Organization of Petroleum Exporting Countries.

Total production last year was relatively unchanged from 2016, though the United States and Canada were among the largest producers outside of OPEC. Last year marked the start of an OPEC policy to balance the market with coordinated production control measures.

"On the supply side, the United States continues to be the main game-changer," Eni's CEO Claudio Descalzi stated in the report. "While world production remains nearly flat with respect to last year, the United States delivered one of the biggest increased in non-OPEC area production and confirms its leadership among producers." 

The four-week moving average for total U.S. production for the week ending July 20 was 10.95 million barrels per day, a 16.6 percent increase from the same period last year. That beats Saudi Arabia by about a half million barrels per day, based on the kingdom's June average.

For total reserves, however, the United States was not in the top 10. Those honors went to Venezuela, Saudi Arabia and Canada, respectively. While the United States was the top producer last year, its total reserves represented about 10 percent of Venezuela's 302 billion barrels of oil.

Venezuela is facing growing isolation following the May election victory for Venezuelan President Nicolas Maduro. The International Monetary Fund in an outlook on Latin America said the country's economy is in a "profound" crisis and inflation is on pace to surge to 1 million percent by the end of the year.

Real gross domestic product for Venezuela is on pace to drop 18 percent this year, the third year in a row for a double-digit decline. For the rest of Latin America, the IMF said it expected GDP to grow by 1.6 percent this year and then accelerate to 2.6 percent in 2019.

For the United States, the economy expanded at 4 percent in the second quarter, one of its fastest rates in years, though much of that gain was supported by temporary factors.

For demand, Eni found relatively low crude oil prices in 2017 contributed to a 1.7 gain globally, beating the five-year average of 1.5 percent for the period ending in 2016.