OILWATCH

RESISTANCE No. 23 OILWATCH NETWORK BULLETIN

December 2001

Dear Friends: This is the last bulletin for the year 2001, a year that has been marked by the shadow of war. On this note, we are including an analysis of how the war, besides producing various other disastrous effects, also favors Climate Change. This we complement with a note on how the interests of oil companies, especially the crossing of oil pipelines, are the underlying cause of the war in Macedonia. We also make a tribute to the activists who were executed on November 10th, 1996 by the Nigerian dictatorship, observing another year of the anniversary of this atrocious event. We have included information on the Sunderbans mangrove forest in Bangladesh, now threatened by hydrocarbon activity. In the section on Human Rights, we share with you a report on the Yora indigenous group in Peru, who have recently been in contact with other groups, that have been severely affected by Shell. In Oil in the Tropics, we include information on Mexico, Malaysia and information about a gas pipeline that will start in Nigeria, cross West Africa to Algeria, and end in Spain, where from there it will distribute gas to the rest of Europe “door-to-door”. Finally, we want to share with you a poem by our friend and brother, Nnimmo Bassey. In solidarity, International Secretariat OILWATCH ================================================= =========== CLIMATE CHANGE =========== WAR: ANOTHER CAUSE OF CLIMATE CHANGE

War is the worst and most dangerous weapon against the planet. Besides killing human beings, it provokes long-term climate impacts. It is one of the biggest causes of global impacts that contribute to climate change. Unfortunately, when war is at the top of the international agenda, the environment takes last place. Because of their effects, all wars are world wars (not only those that affect Europe). It is possible to understand the global impacts of war, if we analyze past wars, where military power has destabilized the delicate balance of ecosystems, causing environmental, social and economic devastation. For example, in the Persian Gulf War, part of the military strategy was to burn great quantities of oil, that which produced irreversible climate change. The Kosovo and Plan Colombia wars also have impacts on the climate worldwide. In the case of Plan Colombia, the attack on the climate is direct, given that they are fumigating the Amazon jungle. Climate Change means life or death. The impacts are already being felt around the world: flooding, droughts, heat waves, disease, forest fires, etc. If we add up all of the activities of the United States and Great Britain in Afghanistan, including the mobility of thousands of troops, jet planes and military trucks, whose presence provokes massive forest fires, of whole cities, of industries and workshops, of fuel deposits...it is easy to understand that there are coming not only from carbon, but from chloride carbons, and other contaminants that are discharged into the atmosphere. According to scientists, the impacts of the Gulf War provoked severe damages to the environment. In 1999 the first international conference on the environmental effects of war reported that eight years after the war, the deserts of Kuwait were still severely affected by the “movement of tanks, military personnel, the construction of thousands of barricades, millions of mines and the explosion and burning of more than 700 oil wells”. The consequences of the Gulf War provoked, according to scientists, that “the winds were early and stronger than normal. It also provoked a devastating typhoon in Bangladesh in May of 1991, killing 100.000 people". In this case, the impacts that were detected in the area, were not because of the eruption of Monte Pinatubo, as was stated in the press. A study of the environmental impacts of military activities during the conflict in Yugoslavia, reported that as of June 1999 the Danubio Azul, was still sickened with contaminants generated from the war, including PVCs, fuels, ammonium, dichloride etalon, and heavy metals such as copper, chrome and lead. These heavy metals and other chemicals such as sulfur bioxide and chloride carbons were emitted into the atmosphere during the burning of industry infrastructure and the burning of fuel deposits. In many parts of Yugoslavia there has been acid rain as well as radioactivity in the air, because of the type of arms used with impoverished uranium.

Besides the local and short-term impacts, all arm activity has long-term implications, and in unusual places. For example, the nuclear tests in the Atolón de Muroroa were determinants in the intensity and magnitude of the earthquakes in Latin America in 1998. The army produces enormous quantities of garbage, toxic waste and drainage. It has been calculated that in the Golf War, between 10 and 12 million gallons of drainage was produced daily. The soldiers of the United States Army ate Mexican and Chinese food, prepared in the United States and brought to their sites in disposable containers. They also consumed millions of liters of water in disposable bottles that were left wherever they happened to be at the time of consumption. Desert ecosystems like those in Afghanistan are very fragile. The movement of heavy vehicles therefore causes erosion. With the small amount of water available, this country could take hundreds of years to recuperate from the effects of the war. The destruction of dikes and other infrastructure, that has allowed farmers to be able to cultivate the land, will now forever condemn these people. In North Africa, many areas are still in a process of recuperation from the tanks used in the Second World War. The massive quantities of refugees running from war zones has provoked environmental contamination, forcing to their limits already fragile resources and ecosystems. The weapons used in Afghanistan, the bombs, the mines, and even the unconfirmed use of chemical weapons, is a crime against the Afghani people, but also against the entire planet, since they provoke harmful residues in the atmosphere in the long-term. If we think of all of the deaths, traumas and environmental impacts inherited from the Second World War and the delay in recuperation, imagine the delay by returning to the Crusades, as if it were the present war. The war against terrorism summoned by President Bush, increased by the NATO, with the presence of 500 000 soldiers in the zone, the use of Tomahawk missiles, thousands of jet flights, bombs, helicopters…it will provoke impacts that will never be forgotten nor will we be able to ignore them. ================================================= ============= FROM THE NETWORK ============= ECUADOR. SARAYACU COMMUNITY IN THE ECUADORIAN AMAZON DECLARATION OF REJECTION AND RESISTANCE AGAINST THE OIL COMPANY CGC The community of Sarayacu in the Ecuadorian Amazon rejects the continuous pursuits of the oil company CGC against us.

In May 2000 we had a meeting in our community with Mr. Ricardo Nicolás, representative of CGC. He offered us 60 000 dollars if we accepted CGC oil exploration. In addition, he promised us, that if we did not accept, CGC would return to Argentina, remaining friends with us. We did not accept his proposal, and have repeatedly stated that we will not accept any oil activity within our territory. However, CGC continues to pursue this issue with us. CGC pays people from indigenous communities to circulate pro-oil propaganda, and also slander community leaders in order to create internal conflict and division which facilitates the entrance of the oil company into the territory. On September 21 to the 23 there was a meeting in the community of Canelos, financed by CGC, in order to make it seem that the communities were in agreement with the exploration of oil. Six people from Sarayacu were invited, who were not representatives of the community. Only three accepted the invitation. We know that oil exploration will only give us contamination, hunger and misery. We live from hunting, fishing and our small plots, and if oil contaminates our land and our rivers we will not be able to survive. The money that we would be able to gain for a few months being workers for the company means nothing compared to what we will lose. - We refuse the dirty manoeuvers of CGC and demand that they carry through with their promise of leaving our territories since we do not accept their presence. - We are warning our indigenous brothers and sisters to be careful of Mr. David Gualinga, and indigenous native of Sarayacu, who was thrown out of the community in 1983 for being a liar and for trying to divide the community. He is now paid by the oil companies and goes from community to community within the concession to try and convince the people. - We demand that we be able to maintain friendly relations with our neighboring communities, and to not fall in the traps set by GCG so that we fight with our brothers and sisters. - We ask for solidarity and moral support from organizations, the government and friends in the entire world in the defense of our territory, at the same time defending the Amazon jungle and the environment in the entire world. - We declare that any move by the oil company to enter our territory will be considered an act of war, and we will take the corresponding action in order to defend ourselves. We not only defend our rights, but also our obligation to protect our children and future generations.

We want to free ourselves, once and for all, of the constant threat of oil companies, so that we can live in peace and tranquility, and are able to concentrate in the struggle for bettering our living conditions.

Sarayacu, September 25, 2001 ================================================= ======= COLOMBIA ======= Three years ago, on July 3, 1999, 18 thousand barrels of oil spilled in Esmeraldas on the Pacific Coast of Ecuador, because of damage in the refinery, which affected the black communities who live off of the mangroves and small-scale fishing the Colombian Pacific Coast in Tumaco. The inhabitants of the area, the majority fishermen, have not been able to continue fishing, and this has affected their diet, since they depend on products of the sea for their survival. Since this year, the black communities have been looking for someone who will attend to this problem, but the not the Ministries of the Environment in either one of the two countries, nor Petroecuador, or Ecopetrol, or any other Colombian governmental institution will respond to this serious situation in which these communities are living. The oil was buried in plastic bags at the shore and in time will rise to the surface once again, constituting a time bomb for the inhabitants and the damaged ecosystems. This is an example of the irresponsible, imprudent and obsolete methods used in these situations and that are promoted by the Ministry of the Environment, by not advising on the risks that these bring to the communities and to ecosystems. We are making a call to demand that the government of Colombia, Ecopetrol, Petroecuador and the Ministry of the Environment attend to these matters urgently as they put the black communities of the Colombian and Ecuadorian Pacific Coast at very high risk. ================================================= =========== FROM THE NEWS =========== MANILA, PHILIPPINES (15 October 2001) - The Asian Development Bank will provide a US$1 million technical assistance grant to restructure Pakistan's gas sector to make it more efficient and to attract private sector investments. The Government of Pakistan, through the Privatization Commission, has already approved US$1.5 million in funding in parallel support for this program. The project aims to commercialize the gas sector's operations, restructure and privatize its state-owned entities, to allow private investors in the field. The work will involve three phases: Phase 1 will identify and define the optimum structure for the gas industry in Pakistan; Phase 2 will cover implementation of the proposed structure while Phase 3 will focus on privatization.

Pakistan's gas sector is undercapitalized, and is unable to invest in improving its infrastructure. As a result, natural gas discoveries remain undeveloped and the country continues to rely heavily on fuel oil imports. The gas transmission and distribution subsector is dominated by public sector companies while both public and private sector companies are active in the development and production of gas fields. As a first step, the Government has already established an independent regulator for the sector. The proposed reform under the assistance will improve performance, enhance efficiency and bring in much-needed investment from the private sector. It is estimated that substituting domestic gas for imported fuel oil will result in foreign currency savings of US$4 billion over the next 10 years. The Ministry of Petroleum and Natural Resources will be the executing agency. Source: 2001 Asian Development Bank ============================================================ CLIMATE CHANGE INDIA – HYDERABAD, India- Thirty-one people died and thousands were left homeless after a cyclone lashed India's southeast coast, uprooting trees and washing away palm thatched huts, relief officials said yesterday. Authorities in the coastal state of Andhra Pradesh said the torrential rains left several coastal regions in the state flooded after rivers and several irrigation tanks overflowed. Helicopters dropped food and water packets to marooned villagers and rice and fuel was also distributed to those hit by the storm which packed winds of up to 75 km (46 miles) an hour. "Thirty-one people died in the floods," State Relief Commissioner D.C. Rosaiah told Reuters. Some 25,000 people were evacuated to relief camps in the districts and engineer teams were working "on a war footing" to repair irrigation tanks, roads and railway tracks damaged by the storm, he said. Relief officials said Cuddapah town, 418 km (261 miles) south of Hyderabad, was completely flooded after authorities were forced to open the sluice gates of a rapidly rising reservoir. Thousands of residents were stranded on rooftops in the town or evacuated to nearby high ground. Officials said boats had been pressed into service to evacuate hundreds of other villagers threatened by rising waters in other parts of the state. Weather officials said the storm has weakened and was last heading west overland towards the Arabian Sea.

REUTERS NEWS SERVICE ============================================================ VIETNAM November 1, 2001 HANOI - A court in Vietnam has released a Liberian-registered tanker involved in an oil spill last month after its Taiwanese owners provided a financial guarantee to cover damages if found liable, officials said yesterday. A court official in the southern province of Ba Ria-Vung Tau said Taiwan's Formosa Plastics had provided the guarantee through the Vietnam Bank for Foreign Trade. An official at the provincial department of Science, Technology and Environment said the ship left last week following the guarantee. The court official said the provincial authorities had filed a lawsuit against the owners demanding $16.8 million in compensation for environmental damage after the spill on September 7. Petrolimex, the Vietnamese owner of the tanker Petrolimex 01, with which Formosa One collided, was seeking $2.38 million for damage to its carrier and cargo, he added. According to Vietnamese officials,the collision in the Vung Tau Bay 120 km (75 miles) southeast of Ho Chi Minh City, resulted in the spillage of 700 to several thousand tonnes of diesel oil which washed up onto nearby tourist beaches and shrimp farms. The 31,372 dwt Formosa One was impounded after the incident. REUTERS NEWS SERVICE ============================================================ COLOMBIA OXY TO PUSH ON WITH NEXT COLOMBIAN WELL US Occidental says it plans to develop its A-1 well in Colombia's Siriri (formerly Samore) Block, despite the disappointment over results at its first Gibraltar-1 well (EC Aug.3,p10). Local reports say Oxy lost $60 million at Gibraltar, where it recently halted drilling, and will have to spend a further $2.5 million dismantling equipment. Oil reserves in the A-1 area have been reassesed at 300 million-500 million barrels, down from original estimates of 900 million bbl. Reserves in Gibraltar had been estimated at 1.4 billion bbl. Oxy will also conduct additional geological surveys of Siriri before drilling more wells. 2001 Energy Intelligence Group, Inc. Energy Compass Friday, August 10, 2001 ============================================================

BRAZIL: October 19, 2001 RIO DE JANEIRO, Brazil - A tanker belonging to Brazil's state oil group Petrobras hit underwater rocks yesterday in the Paranagua port area, spilling naphtha, Petrobras officials said. A spokeswoman for Petrobras in the southern port said it was not clear how much naphtha had actually leaked into the Paranagua Bay from the damaged hull. Officials estimated 7,000 people in and around the port were in the risk area. Lloyds Casualty Reporting Service said about 5 million liters of naphtha had leaked, which Petrobras did not confirm. "The dimensions of the leak are not yet clear," the spokeswoman said, adding that environmental officials had been informed about the accident. "There will still be investigation to find out who is responsible." All air traffic above the port was banned due to high inflammability of naphtha, an oil product lighter than gasoline used as raw material for making plastics by the petrochemical industry. The tanker, Norma, had been carrying 22 million liters of naphtha in 5 compartments, one of which was punctured. The spokeswoman said the spill had been stopped and clean-up crew installed contention and collection barriers. Naphtha is harder to trace than oil as it does not form a visible slick on the ocean surface. But the product evaporates more easily. Ibama environmental agency may slap a big fine on Petrobras, which in the two years provoked a number of environmental disasters. REUTERS NEWS SERVICE ENVIRONMENTAL NEWS SEARCH ============================================================ VENEZUELA FIGHTS TO HALT RIVER-BORNE OIL SLICK Thursday, October 25, 2001 Reuters CARACAS, Venezuela - Venezuelan authorities struggled Wednesday to prevent oil spilled from a pipeline, damaged by leftist guerrillas in neighboring Colombia, from washing down a frontier river into South America's largest lake. A large oil slick, estimated to contain 18,000 barrels of crude, was advancing down the Catatumbo River toward Lake Maracaibo in Venezuela's western oil-producing state of Zulia, oil industry and waterways officials said. "We're making every effort to mop up all the crude spilled in the river so that it doesn't reach Lake Maracaibo," said Danny Romero of the state oil company Petroleos de Venezuela (PDVSA).

The oil had spilled from Colombia's much-attacked Cano Limon pipeline, which was blown up in five places by guerrillas of the leftist National Liberation Army (ELN) over the weekend. Romero said it was one of the biggest spills to ever wash across the border down the Catatumbo River into Venezuela as a result of the Colombian rebel attacks. He predicted there would be damage to the environment but said it was to early to fully evaluate at this stage. Teams of 260 workers distributed at eight points on the river were using booms and other clean-up equipment to try to halt the flow of the slick, which was about 30 miles from Lake Maracaibo. Romero said that clean-up operations were being hampered by logs and debris carried down river by waters swollen by heavy rains which were sweeping away the surface-cleaning booms. But a Maracaibo waterway official, Sheila Venegas, said the strong flow of the Catatumbo could help to disperse the slick. Source: AMIGRANSA. amigrans@internet.ve ============================================================SHELL IS A DOMINANT PLAYER IN THE NIGERIAN ECONOMY 22 October, 2001 By Sola Odunfa in Lagos Shell, the Anglo-Dutch oil company, is suing two villages in Nigeria for alleged damage to equipment during an attack by militant youths in September Company statement to the court The High Court in the Nigerian state of Benin is expected to begin hearing the case on Monday Shell is suing the two Niger Delta communities for $25m in damages as well as more than $800,000 per day in lost production since the 27 September attack. The case against the Olomoro and Oleh communities has been described as the first such action by a multi-national company against a local community. Shell, Nigeria's largest oil producer, has been the target of local militants who demand a greater share of the country's wealth. There have been frequent attacks on oil companies in the Niger Delta amid allegations of environmental degradation and economic neglect by both the oil companies and the Nigerian government. Shell is suing for damage to equipment and lost production.

Shell says the September attack wiped off 40,000 barrels per day of its crude oil production. In a statement filed to the court, the company said it had been "very sensitive to the welfare and well-being of host communities". Shell said it had implemented several projects to enhance local living standards. But the statement said it had suffered constant harassment of staff and extensive destruction of equipment. Explosion In September, Shell alleges armed youths took over the Olomoro flow station and tried to shut it down. But then a build-up of pressure in the surge tanks caused the explosion, which put the facility out of use and spilled crude oil over several hundred square metres of woodland around the station. Shell produces about half of Nigeria's total daily output of oil - about 800,000 to 900,000 b/d of a daily total of just over two million barrels. The BBC's Dan Issacs BBC News Online World: Africa ============================================================ SUDAN REBELS ATTACK OIL CAPITAL Cairo - The leading rebel group in Sudan's 18-year-old civil war said on Sunday it had attacked oil-rich Unity province's capital Bentiu and other targets last week, killing more than 400 government troops. The Sudan People's Liberation Army (SPLA) said in a statement sent to Reuters in Cairo that the premises of a number of oil companies had been destroyed in its raid on Bentiu. It said it had also attacked the town of Rabkona and an army garrison at Tonak. "The SPLA renews its call to oil companies to withdraw before it is too late from the oil-producing areas which are legitimate military targets," the SPLA said. Sudanese government officials could not be reached immediately for comment on the SPLA's statement. The SPLA said 429 government troops were killed and some 105 fighters with pro-Khartoum militias had switched sides. The fighting lasted from October 12 to 20, the rebels said.

Sudan began pumping oil in 1999 from fields in south Sudan, where the SPLA wants greater autonomy for the mostly animist and Christian south from the mainly Muslim, Arabic-speaking north. A United Nations report this month said the conflict, which has intensified in recent months, had turned into a war for oil. International human rights groups have charged that oil firms, by funnelling revenues to the government, were helping to fund the fighting. The Greater Nile Petroleum Operating Company (GNPOC) - 5% owned by Sudan's state Sudapec, 25% by Canada's Talisman Energy Co, 30% by Indonesia's state Petronas, and 40% by China's state CNPC - operates the Unity oilfield. Swedish Lundin Oil has exploration areas adjacent to the concession. The war has cost up to two million lives and displaced millions more. Sources: Bryan Ashe bryan@mweb.co.za ============================================================SOUTH AFRICA: PETRO S.A. WILL NOT BE PRIVATISED Pretoria - The state's oil and gas interests would be combined into a single company, Petro SA, by March next year, the department of minerals and energy said yesterday. Petro SA will own the world's biggest plant for converting natural gas to fuel and would explore for oil and gas in Africa. It will combine Mossgas, the natural gas refinery commissioned in 1992, with Soekor, the country's gas and oil exploration company. Sandile Nogxina, the director-general of minerals and energy, said the government had no immediate plans to privatise Petro SA. Susan Shabangu, the deputy minister of minerals and energy, said the government was not considering selling the assets to private investors. "At this stage, it is in the country's interests for government to be the 100 percent shareholder," she said. Mossgas, which produces 45 000 barrels of fuel a day, is burdened with debt and has struggled to make consistent profits. The cabinet approved the merger in March this year as part of the restructuring of the Central Energy Fund. Petro SA will handle the commercial activities, while the fund remains in control of strategic activities, such as managing oil stockpiles.

Asked whether the state was the best organ to manage a commercial company amid fierce global competition, Shabangu said the government's involvement was not out of step with international practice. It would make business sense for the government to put in place the right team with the necessary business expertise to run the company, and to maximise its investment, she said. According to Shabangu, the merger had a number of benefits. "It is good in that it consolidates a number of commercial activities carried out by three different state entities. Secondly, it makes its operations more sustainable in an increasingly volatile global environment. "The merger will make the company more sustainable and put it in a position where it may even grow." Shabangu said the government was satisfied with the progress made with the merger, but it was not yet possible to say whether the merger would result in any job losses among the 1300 employees. The new company might even need a larger workforce, she said. Shabangu could not give an exact figure on the value of the assets of the entities involved. That was part of the work of the task team working on the merger. Nogxina said the new company would focus on exploration, production and refining. Mvelaphanda, a black empowerment company, had approached the government about its possible participation, but merging Petro SA with Mvelaphanda was not being considered, Nogxina said. The task team is also investigating the implications of the removal of protection for synthetic fuel business, which the government is considering. Depending on the outcome of the investigation, Petro SA might get involved in retailing Bloomberg and Sapa-AFP October 20 2001 at 07:24AM COSTA RICA Low-risk oil exploration Eugenia Soto and Reynaldo Martínez La República/ rmartinez@larepublica.net October 8, 2001- San José, Costa Rica A petition was made to Miguel Angel Rodríguez to declare Costa Rica a country free of oil exploration, said Rodrigo Alberto Carazo. The promise made for oil exploration on the Caribbean coast of Costa Rica with minimum ecological impact, was offered by the consortium Harken Costa Rica Holdings,

and continues to be faced with criticism by environmental organizations, that warn that there is an imminent risk with oil activities that could bring negative social repercussions. The environmentalists consider that oil activity could affect tourism as well as fishing, which are the principal sources of income for the inhabitants of the area. The topic of oil has been heating up in the last few weeks with manifestations by environmental groups, as well as the public audience called by the National Environmental Technical Secretariat (SETENA) in order to analyze the issue. One of the main arguments put forth by the environmentalists is that even without an oil spill, just the operation of an exploratory platform will contaminate the ocean. "We know from the experience of other countries that oil exploration affects many other activities that are no longer possible because of the exploration. This could be from routine contamination, that exists in all exploration of this nature, or from an eventual oil spill,” warned the organization Oilwatch in Costa Rica in a recent publication . The organization suggested the existence of “three major sources of contamination in the exploration platforms” such as the drilling fluids, waste mud and dirty water, which the companies usually dump into the sea. Olman Barboza, and engineer from the company, indicated that these arguments are based on technology application that is not used and the only thing that the environmental organizations are trying to do is “scare people” (see chart: Differences in criteria). Another big concern of the environmentalists is that an eventual oil spill from the exploratory platform that is located 10 kilometers from Moín will affect 800 hectares of coral reef in front of the Cahuita beach since the direction of the current would take the crude to this spot. Alejando Gutiérrez, director of the International Ocean Institute who assured that “the predominant current on the marine surface goes in the direction of that area and even carries on to Panama”, confirmed the thesis on the displacement from the tides. "An exploration platform should count on sufficient security measures so taht this will not happen, but it is at least a minimum probability with respect to the oil spills provoked by ship accidents” he added. The International Petroleum Industry Enviromental Conservation Association, argued that the oil spills from platforms represents only 2% of the total contaminants in the sea, compared to 12% that represents tanker accidents and 37% from urban and industrial discharge. The Oilwatch publication assured that oil activity would have a strong social impact, especially due to the effect that it will have in contaminating the fishing and tourism industry.

The data indicates that just the fishing industry generates between 600 and 800 direct jobs during fishing season, since there are more than 200 boats that provide work to on average three people for each boat. The commercial exploitation of lobster, shark and others, according to environmentalists, generates an average income for the zone of $4,5 million annually. In relation to the fishing industry, environmental organizations have argued that the negative effects of the seismic studies done by the company last year, before the exploration phase, have affected the species with the detonations. "This needs to be demonstrated with concrete data", stated Barboza, who shared data from INCOPESCA that states that the year 2000 was one of the best years for shrimp, lobster and other species. Numbers given by the institution last May indicated that fishing in the area of Limón increased this year 38%, from 665 to 1 092 metric tons in 1999. Another one of the arguments against oil exploration in the country is that the government does not have the capacity to control this type of concession. "It could not control Marhnos in the construction of the road and it has not been able to supervise the concession of the Juan Santamaría International airport, and now what is going to happen with the oil concession?” asked the ex-defense of Habitats Alberto Carazo, who supports the ecologist organizations. International organizations linked to the oil industry such as Mariner Group Inc., dedicated to the cleanup of oil spills and assessing companies in the elaboration of prevention and contingency plans, indicated that the new technologies reduce the levels of contamination in this activity, principally in terms of liquids utilized in the drilling process, which is one of the biggest worries for environmentalists. "There are alternative drilling fluids that are less toxic and more water soluble” said Stanislav Patin, director of the Russian Institute for Investigations in Fish and Oceanography, who has been investigating the oil industry for 10 years, in an article sent to the LA REPUBLICA by Hakon Rydland, administrative director of Mariner Group in Singapore. ....... The future of oil exploration in Costa Rica is at this moment in the hands of SETENA, who needs to decide if they will approve or not the environmental impact study that will allow the project to start. It is estimated that the result of the analysis of this document will be made known approximately within a month. ================================================= MILITARY WATCHES OVER THE CONSTRUCTION OF THE OCP

www.elcomercio.com.ec Quito. Saturday, October 13, 2001 Hundreds of military are on guard during the construction of the new oil pipeline for heavy crudes in Ecuador, whose execution provoked protest from ecologists and students, who maintained a blockade in front of the machines on Saturday, because of construction in an area of biological importance. The military were charged with guarding the six stations and 11 camps, indicated Andrés Gálvez, from the Argentinean security company Techint, which forms part of the international consortium charged with carrying out the work. Gálvez stated that there would be 120 men guarding the specified sites. The oil pipeline, that will be 504 kilometers long, extends from Lago Agrio in the Ecuadorian Amazon, to port at Balao on the Pacific. Ecologists, inhabitants and university students were in protest for the third day in a row in order to impede the machines from passing through Mindo, 35 Km northeast of Quito. Acción Ecológica (AE), a national organization, sustains that this zone “is part of the protector forest Mindo-Nambillo, holding enormous biological and scenic importance and that has been recognized for its extraordinary concentration of birds, the biggest in South America ". The pipeline, whose construction will mean a 1 100 million dollar investment, will have the capacity to transport 518 000 barrels of heavy crude, daily. Ecuador exploits around 440 000 barrels per day (b/d), of which around 270.000 b/d are exported. Enviado por: ocp@topica.com ================================================= ================= OIL IN PROTECTED AREAS ================= BANGLADESH: THE SUNDARBAN MANGROVE FORESTS IN BANGLADESH OIL-GAS EXPLORATION THREATENING MANGROVES & ENVIRONMENT Chittagong, Mongla ports becoming vulnerable to oil spillage by Anwar Firoze, CDP Researcher The Sundarban Forest is the largest continuous mangrove ecosystem that exists in the world today. It is approximately 10,000 square kilometers in extent, out of which 6017 square kilometers, or roughly 60%, is situated in Bangladesh, while the rest lies in the

state of West Bengal in India. Located at the mouth of the wide Ganges system delta between 80 and 85 degrees East Longitude and 21-30' and 23 degrees North Latitude, the forest thrives in a delicate balance of fresh water brought by the Ganges and its distributing branches and the saline sea water brought in by the diurnal tides that pass through the maze of creeks and estuaries that criss-cross the forest, and cover nearly a quarter of its area. The forest as well as the tides determine the environment and ecology of the adjacent upstream areas to a great extent. Protective and Nurturing Role of the Forest : The forest that covers a large portion of the coastline of the Ganges delta acts as a buffer against erosion of the coast by sea waves, as well as against the cyclone-generated tidal surges which can and do cause massive destruction to life and property. The benefits provided by the forest in its protective role are incalculable. Secondly, the forest produces about 3.5 million tons of detritus which, falling in the water, is carried to the farthest reaches of the tidal prism, and decomposing in the water, produces nutritious organic food for all species of aquatic animals. This decomposed organic matter when deposited along with silt on the low lying tidal flood plains immediately upstream of the Sundarbans, enriches the soil and restores its fertility. As a result, the inland waters in and around the Sundarban is a favorite feeding ground for all species of aquatic animals, as well as a protected breeding ground for many varieties of fish and shrimp. Many economically important species of fish and shrimps spend an important part of their lives in these inland waters. Bio-diversity in the Sundarban Forest : The Sundarban forest is rich in its variety of mangrove species, of which there are said to be nearly 300 varieties. The most important is the Sundari (Heretiera fomes), after which the forest is named. Heavier than teak, its timber is highly durable when in contact with water, and is therefore used in building boats and for jetty piling. The Pussur (Xylocarpus mekongensis) is a valuable timber as it is mostly used for making high quality furniture. Other timber varieties are Keora (Sonneratia apetala), Gewa (Excoecaria agallocha), Kakra (Bruguiera gynmorrhiza), Dhundul (Xylocarpus granatum) Bain, (Avicennis officinalis) Amoor (Amoora cuculata), Ora (Sonneratia caseolaris), Moricha Bain (Avicenna marina), Sada Bain (Avicenna alba), Hatal (Phonix Paludosa). The two varieties of Goran (Ceriops decandra and Ceriops tagal) are excellent fuel woods, and due to its high tensile strength, are also ideal for posts and rafters. There are many varieties of brackish water tolerant reeds and grasses which are also economically valuable. The fronds of the Nypa (Frutcans palm), locally known as "Golpata" are used for thatching, as it is much more durable than cocoanut fronds. A variety of marsh grass named Ciperus Tagetiformis (Roxy), known locally as "Meley" is valuable for its flower stalks which are used in making mats, which are essential household articles in almost every household in the country. Because of local extinction of this grass in the inhabited regions adjacent to the Sundarbans, the resources of this grass in the forest is under excessive pressure.

There are dozens of species of mammals, 53 species of reptiles, 8 species of amphibians and nearly 315 species of birds in the Sundarbans. Among the aquatic animals, there are 24 species of shrimps, 124 species of brackish/saline water fish and 53 species of fresh water fish in the waters in and around the forest. CONCLUSION --Every issue has two aspects, positive and negative. The present situation in respect of the Sundarban Reserved Forest may appear to present a negative aspect. But there are reasons for concerned people to maintain their faith. For one thing, more and more people are expressing their concerns in respect of the Sundarbans than ever before. Even the authorities concerned who are usually the most lethargic in respect of corrective measures, have taken steps to implement a seven year project which may result in the regeneration of the forest. The project will have a definite impact, not only in the matter of conservation of bio-diversity as its name suggests, but also the perspective of the people in respect of the forest. Secondly, the project also attempts to change the perspective of the Forest Department personnel. So far they had considered themselves as "masters". But the project is likely to make them realize that they are answerable to the very people whom they had considered as mere "beneficiaries". It is this transformation that will be of more benefit to the forest in the long run than any other tangible addition to its resources. Sources: Citizens' Committee for Conservation of Bio-diversity in the Sundarbans and Citizens' Committee for Conserving Coastal Environment, Khulna. e-mail: tutucdp@hotmail.com OR cdp@khulna.bangla.net ============================================================ ========== HUMAN RIGHTS =========== REPRESENTATIVES OF THE YORA (NAHUA) – IN INITIAL CONTACT - VISIT CAPITAL The Yora (as they identify themselves) or Nahua (as they are identified in the Nahua-Kugapakori Reserve) are located in the Reserve territory of the State, favoring the Kugapakori and Nahua ethnic groups, which was created through Ministerial Resolution N° 046-90-AG/DGRAAR on February 14, 1990. This reserve has a surface area of 443 887 hectares, and is located in the southeast of the country, beside Manú National Park. Yora territory extends on both sides of the Mishagua and Serjali rivers. The current population is approximately 250 Yora people. Will them live two yaminahua/mestizos families, two Dominican missionaries and a professor and his family. The Yora are a peaceful people and feed themselves exclusively from hunting, fishing and the production from small individual family gardens. They have lived for an undetermined amount of time in voluntary isolation, with a high geographic dispersion and permanent mobility, without having any regular contact with other people and even less with the national community.

The first contact was made in April 1984 with the hydrocarbon exploration activities by Shell. This first contact produced as a result approximately 42% of the population in the following years of contact due to respiratory problems introduced in the population. From 1984 to 1990 the majority of the Yora lived in continuous migration between Sepahua and Alto Manú. In 1990 the first Yora established a more stable community in Serjali, attracted to the wood products that were making their way into the reserve. In 1995 the majority of the Yora has moved to Serjali where they formed the first, and up until now the only, sedentary establishment known as the “Native Community of Santa Rosa de Serjali". Among the multiple demands from the Yora, is a petition that will protect them from the activities of the hydrocarbon companies. In lot 88, Plus Petrol is in large part working in the Kugapakori-Nahua Reserve and their impacts are very close to the territory occupied by the Yora. . In addition, lots 56, 57 and 58 adjacent to Camisea, are on Yora territory and the public competition for these lots will be confirmed in October, which means a great threat to the life of the Yora. For these reasons, the competent authorities, SETAI and the National Commission for Andean and Amazon Peoples, which was recently formed, are being urged to take measures that will ensure the protection of the Yora people. As well, the Special Program for Land Titles is being urged to give a better and more detailed orientation for the representatives of the Yora so that they can better understand the legal framework that will allow them to initiate a process that will give them legal security for the control and management of their land and the resources that they traditionally use, in strict observation of the Agreement of Indigenous Peoples N° 169 of the OIT. SOURCE: Servicio Información indígena (SEVINDI) servindi@yahoo.com ================================================= ============================ STORIES OF THOSE WHO RESIST ============================ REMEMBERING NOVEMBER 10th, 1995 It is now 6 years since the brutal murder of Ken Saro Wiwa and the 8 other Ogoni activist in Nigeria. This killing which shocked the world remains the greatest act of terror Ogoni witnessed. Today the world experiences terror in dimensions of great magnitude and it is now time to combat acts of terrorism. But Ogoni continues to be intimidated by economic terrorist. We remember with sadness the carefully masterminded plot by the oil multibillion giant Shell to cut short and put an end to the lives of Ken Saro Wiwa and his eight colleagues for crimes of demanding justice for

Ogoni people. MOSOP believes in the sanctity of lives and condemns in strong terms all acts and agents of terrorism and mourns with all those who have lost loved ones to the great enemy of the people known as terrorism. While the world combines efforts to combat terrorism, MOSOP reminds all oF the pains which is still being inflicted on Ogoniland both on her people and her environment by – Shell, whose sole motive is to drain the Ogoni community of her resources. We remind the world of our sufferings and continue to demand attention to our plight. Memories of the years of 1993 to 1996 remain fresh in our minds when: 1) Over 2000 Ogonis were killed by the Nigerian military in a war of genocide against

the people 2) Thousands of Ogonis were maimed and thousands of women raped. 3) 30 Ogoni villages were razed to the ground by soldiers in an operation aimed at

cleansing Ogoni 4) Over 100,000 Ogonis were made refugees and had to flee their homes 5) On November 10, 1995, Ken Saro Wiwa and his 8 colleagues where hanged for

demanding justice for the Ogoni people. While six years has elapsed since the hanging of our leaders, we hereby inform the world that nothing has changed in Ogoniland. The deplorable conditions of living of our people are certainly not acceptable and we remind Obasanjo's government of the duties it owes the Ogoni people. While remembering Ken Saro Wiwa, Dr. Barinem Kiobel, Saturday Dorbee, Paul Levura, Nordu Eawo, Felix Nuate, Daniel Gboko, John Kpuinen and Baribor Bera, MOSOP continues to demand justice for Ogoni and all oppressed people of the world. The struggle continues. Mrs Gbenewa Phido President - MOSOP-UK Contacts: Harrison Neenwi & Gbenewa Phido ============================================================ ===== REVIEW ===== SPECIAL PUBLICATION ON OCCIDENTAL Oilwatch and members from Colombia, Ecuador and Peru (CENSAT, ACCION ECOLOGICA and APRODEH) published in October 2001 the book "THE WAY OCCIDENTAL EXTRACTS OIL", that establishes the history of the United States oil company Occidental in Andean-Amazon countries. In almost 200 pages, the book x-rays the Occidental Petroleum Company.

In the research carried out by Adolfo Maldonado, the word of the people threatened and affected by the company, illustrate the strategies of this company. The report includes the proposals of the company, based on the United States energy policy, which imposes the extraction of oil at any price. This data on Occidental was necessary in order to comprehend the magnitude of its influence, as well as that of other companies. Occidental is a company that opened the way to the Amazon jungle, taking down forests and affecting the people who lived there and those who continue to live there. It applied the strategy of aggressive occupation, with crude answers to local reactions of rejection to the operation. In this report the strategies are analyzed that includes the threat to communities, the division of organizations, direct pressure, backed by repressive forces of the State, buying out people, and not following through with the basic rights especially those stated in national legislation. In was particularly necessary for the Andean Amazon countries to know Occidental, since the company has defined a geopolitical interest in the region. The true face of the company is stripped with the resistance of the populations, such as the U’wa in Colombia. ============================================================ ============= OIL IN THE TROPICS ============= MALAYSIA Malaysia is currently in its third year of economic growth following the deep recession caused by the Asian financial crisis of 1997-98. Following a 7.5% decline in real gross domestic product (GDP) in 1998, Malaysia experienced real GDP growth of 5.6% in 1999 and 7.5% in 2000. Softening demand for Malaysian exports associated with the economic slowdown in the United States, however, is expected to lower the country's real GDP growth to 5.6% in 2001. Imports of capital goods have been rising, which may lower the country's current account surplus. Malaysia's banking system has been stabilized, after being undermined by a high proportion of nonperforming loans during the financial crisis. Malaysia contains proven oil reserves of 3.9 billion barrels, down from 4.3 billion barrels in 1996. Despite this trend toward declining oil reserves (due to a lack of major new discoveries in recent years), Malaysia's crude oil production has been stable in recent years, with monthly production numbers fluctuating between 660,000 barrels per day (bbl/d) and 730,000 bbl/d between 1996 and early 2001. In 2000, crude oil production averaged 690,000 bbl/d. After a pause during the Asian financial crisis, Malaysia's domestic petroleum product consumption is growing again.

As a result of declining oil reserves, Petronas, the state oil and gas company, has embarked on an international exploration and production strategy. Currently, Petronas is invested in oil exploration and production projects in Syria, Turkmenistan, Iran, Pakistan, China, Vietnam, Burma, Algeria, Libya, Tunisia, Sudan, and Angola. Overseas operations now make up nearly one-third of Petronas revenue. In 2000, Malaysia exported the majority of its oil to markets in Japan, Thailand, South Korea, and Singapore. Malaysia's domestic oil production occurs offshore and primarily near Peninsular Malaysia. Most of the country's oil fields contain low sulfur, high quality crude, with gravities in the 35o-50o API range. Over half of the country's oil production comes from the Tapis field, which contains 44o API oil with a low sulfur content. Esso Production Malaysia Inc. (EPMI), an affiliate of ExxonMobil Corporation, is the largest crude oil producer in Peninsular Malaysia, accounting for nearly half of Malaysia's crude oil production. EPMI operates seven fields near the peninsula, and one-third of its production comes from the Seligi field. The Seligi-F platform, with its 28 wells, is the newest satellite in the Seligi field, located 165 miles off the coast of Terengganu, Peninsular Malaysia. Built at a cost of $155 million, Seligi-F is the seventh production platform on the Seligi field. The platform came on stream in March 1998 and is expected to produce an annual average of 21,000 bbl/d. EPMI holds a 78% interest in the project with Petronas Carigali holding the remaining 22%. In addition, EPMI began drilling the nearby Raya-A platform in the second quarter 1998. EPMI has invested $96 million in six wells, and holds an 80% interest with Petronas Carigali holding the remaining 20%. In other developments, Sabah Shell Petroleum Company, a unit of Royal Dutch/Shell Group, raised production at the Kinabalu field to 36,000 bbl/d, as well as 28 million cubic feet per day (Mmcf/d) of gas. Production at Kinabalu, located in the SB-1 block 34 miles off the coast of Labuan, Sabah in east Malaysia, began in December 1997. Peak production is expected to reach 40,000 bbl/d of oil and 30 Mmcf/d of gas. As operator of the SB-1 block, Shell holds an 80% stake in the block, with Petronas holding a 20% stake. In February 1998, Amerada Hess signed two, five-year production sharing contracts (PSCs) with Petronas for blocks PM304 and SK306. The PSCs commit Amerada to $24.9 million of exploration activities on the two blocks. A successful well was reported in the PM 304 block in April 2001, but it is still under evaluation and a reserve estimate has not been announced. Under the PSCs, Amerada holds a 70% stake in PM304, offshore Terengganu, and an 80% stake in SK 306, offshore Sarawak, with Petronas holding the remaining interests in both blocks. In February 2000, Sweden's Lundin Oil announced that it had signed a sales agreement with Petronas and PetroVietnam which will allow it to proceed with development of its long-delayed Bunga Kekwa project. Production stood at 18,000 bbl/d in April 2001, and is expected to increase to a volume of 40,000 bbl/d when development is completed in 2003. Lundin Oil is the operator of the field, and Petronas and Petrovietnam hold equity stakes in the project. Lundin Oil also was awarded the PM 305 block in November 2000. Lundin will have a 60% interest, with the remaining 40% held by Petronas. Refining & Downstream

Malaysia has six refineries, with a total processing capacity of 513,600 bbl/d. The three largest are the 155,000 bbl/d Shell Port Dickson refinery and thePetronas Melaka-I and Melaka-II refineries, which each have a capacity of 95,000 bbl/d. The second phase of the $1.4-billion, 200,000-bbl/d Melaka refinery complex, located about 90 miles south of Kuala Lumpur, commenced operation in August 1998. The 100,000-bbl/d Melaka-II second phase is a joint venture between Petronas (45%), Conoco (40%), and Statoil (15%). This second refinery contains a 62,000-bbl/d vacuum distillation unit, 26,000-bbl/d catalytic cracker, 28,500-bbl/d hydrocracker, 35,000-bbl/d desulfurization unit, and 21,000-bbl/d coker. One of the main purposes of this refinery is to supply gasoline to Conoco's service stations in Thailand and a new line of stations planned for Malaysia. The first phase of the Melaka refinery was finished in mid-1994 and consisted of a 100,000-bbl/d sweet crude distillation unit, which is wholly-owned by Petronas and processes Tapis crude oil. Petronas, in a joint venture with Conoco began construction of a 7,500-bbl/d lubricants plant at Melaka in 1998. Petronas and its partners began construction on the $250-million plant in March 1998, and it is scheduled to come on line in 2002. In other downstream activities, Petronas signed a joint venture agreement with Union Carbide Company, in April 1998, to build a petrochemical complex in Kertih on the east coast of Peninsular Malaysia. Construction of the complex is estimated to cost $3-$4 billion and to involve three separate projects. The centerpiece of the joint venture is an olefins cracker unit with an annual production capacity of 600,000 metric tons of ethylene and 85,000 metric tons of propylene. Petronas will hold a 76% stake and Union Carbide will hold a 24% stake in this unit, which is expected to be complete by the first quarter 2001. Both companies will hold equal shares in the ethylene oxide/ethylene glycol plant with an annual capacity of 320,000 metric tons and the multi-unit derivatives plant. The derivatives plant will produce amines and ethyloxates, glycol ethers, butyl acetate, and butanol. Sources: URL: http://www.eia.doe.gov/emeu/cabs/malaysia.html ============================================================ ===== MEXICO ===== In July 2000, Vincente Fox of the National Action Party (PAN) won an historic presidential election, ending 71 consecutive years of Institutional Revolutionary Party (PRI) rule. Fox was inaugurated as president of Mexico on December 1, 2000. Mexico is enjoying a period of rapid economic expansion, augmented by unprecedented political stability. President Fox has declared this to be the "Mexican moment," encouraging foreign investment in Mexico. Neighbor and fellow NAFTA member the United States is by far Mexico's largest trade partner. Any slowdown in the U.S. economy would have adverse effects on the Mexican economy.

Fox has ambitious plans to restructure and modernize Mexican government and industry, especially the energy sector (although privatization of the state oil company Pemex has been ruled out as politically infeasible). Fox has stated his commitment to making the country less financially reliant on oil exports, which currently generate about one-third of government revenues. Mexico is producing and consuming rapidly increasing quantities of natural gas, and much of the country's vast gas reserves remain untapped. Finally, Fox is attempting to liberalize parts of the electricity sector in hopes of attracting foreign investment to the undersupplied industry. Some of Fox's proposed changes will require changes to the Mexican Constitution. It remains unclear that Fox will be able to generate the required two-thirds majority in the bicameral Congress to enact a constitutional change. The PRI is the largest party in the federal Congress (where no party has a majority) and the majority party in the Senate, and the PRI remains divided between a more progressive wing and a wing more resistant to change. OIL Mexico has the second largest proven crude oil reserves in the Western Hemisphere after Venezuela, at 28.3 billion barrels. In 2000, Mexico produced about 3.5 million barrels per day (bbl/d) of oil, with net oil exports of roughly 1.5 million bbl/d. Mexico ranked as the world's fifth-largest oil producer and tenth-largest oil exporter in 2000, with about 1.4 million bbl/d bound for the United States. The value of Mexican oil exports increased from $6.4 billion in 1998 to an estimated $10.4 billion in 2000, and oil exports account for about a third of government revenues. Mexico produces three grades of crude oil: heavy Maya-22, which accounts for more than half of total production; light, low-sulfur Isthmus-34, accounting for less than one-third of total production; and extra-light Olmeca-39, which is about one-fifth of total production. About three-quarters of Mexican production comes from the Campeche Bay in the Gulf of Mexico. Production at the largest field, Cantarell (located in the Gulf of Mexico of the Yucatan coast), is expected to increase in the next two years. Recent investment in the oil sector has focussed more on enhancing production at existing fields than on exploration for new fields. Mexico is expected to add as much as 200,000 bbl/d of production capacity in the first half of 2001. Underscoring its key position in world oil markets, Mexico often has worked in tandem with Organization of Petroleum Exporting Countries (OPEC) to increase or decrease oil production. On January 17, 2001, OPEC decided to cut production by 1.5 million bbl/d, beginning February 1. Mexico announced later that month that it would aim to export 1.75 million bbl/d during 2001, an amount roughly analogous to its exports at the end of 2000 but slightly lower than the 1.825 planned in the 2001 budget. Mexican officials have expressed keen awareness that high oil prices, while useful for generating government revenues, could prove deleterious for Mexican industry and for the overall economy of its neighbor and the world's largest oil importer, the United States. It is widely accepted that an economic slowdown in the U.S. would have a negative effect on the Mexican economy.

The Mexican oil industry was nationalized in 1938. Petroleos Mexicanos (Pemex), the state oil company, is one of the world's largest oil companies, the single most important entity in the Mexican economy, and a symbol of Mexican sovereignty and independence. Pemex is the only company in the Mexican oil market, upstream and downstream. While the company is criticized widely as being bloated and inefficient, privatization is not on the agenda. The state-run organization of the sector enjoys enthusiastic public support, and President Fox retracted early campaign promises to privatize Pemex and has vowed instead to modernize and streamline the oil giant. Toward that end, a new board of directors was named in mid-February 2001. The board, consisting heavily of corporate heads, is charged with renewing Pemex through "corporate innovation." A maritime boundary dispute between Mexico and the United States was settled in June 2000. The Western Gap area, halfway between the Yucatan and Texas coastlines, is more than 200 miles from either shore and therefore outside either country's "exclusive economic zone". Under international law, Mexico and the United States had to agree on a boundary, and the two countries have agreed that 62% of the region belongs to Mexico and 38% to the United States. Companies are expected to take active interest in the area, as technological advances now will allow drilling in the 10,000-foot-deep waters. Pemex is upgrading its oil transport infrastructure. Currently, there are 2,625 miles of crude oil pipelines and 5,322 miles of oil product pipelines. A 700-mile pipeline currently under construction will connect production from offshore Veracruz to refineries. Downstream Mexico's downstream oil sector was nationalized in the 1950s, and privatization is not planned. Although Mexico is one of the world's largest oil producers, about a quarter of gasoline consumption is imported due to insufficient refinery capacity. The country has six refineries, with a total throughput capacity of 1.5 million bbl/d. Major upgrades on the refineries begun in 1998 aim to: increase the percentage of gasoline and light products refined; allow refineries to process heavier crudes, such as Mexican Maya; meet clean fuel specification; and increase overall refining capacity by 690,000 bbl/d. Work is underway at four refineries, while contracts for work at the two remaining refineries remain in the bidding process. All work is expected to be completed by 2004. Sources for this report include: Argus Latin American Energy; CIA World Factbook; DRI McGraw-Hill Companies, Global Power Report; Dow Jones URL: http://www.eia.doe.gov/emeu/cabs/mexico.html ============================================================ ============ NIGERIA - ALGERIA ============ ALGERIA, NIGERIA BULLISH ON TRANS-SAHARA GAS LINE Thursday, 01 November 2001 17:34:28

PHILADELPHIA, Nov 1 (Reuters) - Nigeria could double its proven natural gas reserves if it steps up its search for gas, which could boost plans for a pipeline to Algeria, Nigeria's top energy official said on Thursday. "All of the gas in Nigeria has been discovered accidentally while searching for oil," said Rilwanu Lukman, energy adviser to Nigerian President Olusegun Obasanjo. "It is the general belief that a deliberate search for gas may result in a doubling of reserves," Lukman said on the sidelines of the U.S.-Africa Business Summit. Nigeria has to flare half the gas it produces because of a lack of export outlets. It has proven natural gas reserves of 3.51 trillion cubic meters but it only produced 11 billion cubic meters during 2000. As Nigeria expands its reserves, it plans to send the new supply through a $5 billion to $7 billion pipeline aimed at European markets it is developing with fellow Organization of Petroleum Exporting Countries (OPEC) member Algeria. The 2,500-mile-long (4,000-kms) Trans-Sahara Gas Pipeline will link Nigeria's capital Abuja, across Niger to the Mediterranean port city of Beni Saf, around 300 miles (500 kms) west of Algiers. To be connected to Algeria's existing network, the pipeline would boost gas exports to southern Europe where Algeria, Africa's No. 1 natural gas producer, already sends 62 billion cubic meters of gas per year. The new line would complement Algeria's two gas pipelines to Spain and Italy. "The European Union market is an infinite market," said Chakib Khelil, Algeria oil minister and OPEC president, said on the sidelines of the conference. Egypt and Qatar are also targeting the European market. "There is room for everybody," Khelil said. The sheer volume of gas from Algeria and Nigeria, which hold the biggest gas reserves in Africa, would make trans-Sahara gas more competitive than gas from other countries, he added. Russia and Norway supply most of the European Union's gas. Financing for the trans-Saharan gas line could come in part from a "new Marshall plan" by the Group of Seven economic powers, James Harmon, former chairman of the U.S. Export-Import bank, said. Khelil said many banks, including Citibank and European export credit agencies, also have talked to Algeria about financing the pipeline. Sources: Timothy Gardner, New York Energy Desk, ++646 223 6051, fax ++646 223 6078

OilResistance-Africa. Information & strategies to support African oil struggles http://www.topica.com/lists/OilResistance-Africa ============================================================ ============== OUT OF THE TROPICS ============== ======== MACEDONIA ======== The war in Macedonia purports to consolidate America's sphere of influence in southeastern Europe. At stake is the strategic Bulgaria-Macedonia-Albania transport, communications and oil pipeline "corridor" which links the Black Sea to the Adriatic coast. Macedonia stands at the strategic crossroads of the oil pipeline corridor. To protect these pipeline routes, Washington's goal is to install a "patchwork of protectorates" along strategic corridors in the Balkans. The promise of "Greater Albania" used by Washington to foment Albanian nationalism is part of the military-intelligence ploy. Who is behind the balkanic pipeline? Oil giants including BP-Amoco-ARCO, Chevron and Texaco. The Anglo-American consortium which controls the AMBO Trans Balkan pipeline project linking the Bulgarian port of Burgas to Vlore on the Albanian Adriatic coastline largely excludes the participation of Europe's competing oil giant Total-Fina-Elf. In other words, US strategic control over the pipeline corridor is intent upon weakening the role of the European Union and keeping competing European business interests at arms' length. The feasibility study for AMBO's Trans-Balkan Oil Pipeline, conducted by the international engineering company of Brown & Root Ltd. [Halliburton's British subsidiary] has determined that this pipeline…will become a part of the region's critical East-West corridor infrastructure which includes highway, railway, gas and fiber optic telecommunications lines. Halliburton was also granted a contract to service US troops in the Balkans and build "Bondsteel" in Kosovo, which now constitutes "the largest American foreign military base constructed since Vietnam" Coincidentally, White and Case LLT, the New York law firm that President William J. Clinton joined when he left the White House also has a stake in the AMBO pipeline deal. The AMBO Trans-Balkans pipeline project would link up with the pipeline corridors between the Black Sea and the Caspian Sea basin, which lies at the hub of the World's largest unexplored oil reserves. The militarisation of these various corridors is an integral part of Washington's design.

The US policy of "protecting the pipeline routes" out of the Caspian Sea basin (and across the Balkans) was spelled out by Clinton's Energy Secretary Bill Richardson barely a few months prior to the 1999 bombing of Yugoslavia. The Anglo-American oil giants, including BP-Amoco-Arco, Texaco and Chevron are competing with Europe's oil giant Total-Fina-Elf (associated with Italy's ENI) which is a big player in Kazakhstan's wealthy North East Caspian Kashagan oil fields. The AMBO pipeline project is linked up with another strategic project entitled "Corridor 8", initially proposed by the Clinton Administration in the context of the "Balkans Stability Pact". Of strategic importance to both the US and the European Union, "Corridor 8" includes highway, railway, electricity and telecommunications infrastructure. In turn, the existing infrastructure in these sectors is slated for deregulation and privatisation (at rock bottom prices) under IMF-World Bank supervision. From the early 1990s, the US and Germany have acted jointly as NATO partners in the Balkans, coordinating their respective military, intelligence and foreign policy initiatives. While maintaining in their public statements a semblance of political unity, serious divisions started to emerge in the wake of the Dayton Accords (1995), as German banks scrambled to impose the Deutschmark and take over the monetary system of Yugoslavia's successor states. Moreover, in the wake of the 1999 war in Yugoslavia, the US has reinforced its strategic, military and intelligence ties with Britain, while Britain has severed many of its ties (particularly in the area of defence and aerospace production) with Germany and France. The US defence industry --which now includes British Aerospace Systems (BaeS)-- is clashing with the Franco-German defence consortium EADS --a conglomerate composed of France's Aerospatiale Matra, Deutsche Aerospace, which is part of the powerful Daimler group, and Spain's CASA. In other words, a major split in the Western military-industrial complex has occurred with the US and Britain on one side and Germany and France on the other. Oil, guns and the Western military alliance are intimately related processes. Washington's design is to eventually ensure the dominance of the US military-industrial complex in alliance with the Anglo-American oil giants and Britain's major defense contractors. These developments evidently also have a bearing on the control over strategic pipelines, transport and communications corridors in the Balkans, Eastern Europe and the former Soviet Union. SOURCES: AMERICA AT WAR IN MACEDONIA By Michel Chossudovsky Professor of Economics, University of Ottawa ============================================================ ===== POETRY

===== WE THOUGHT IT WAS OIL. BUT IT WAS BLOOD Nnimmo Bassey The other day We danced in the street Joy in our hearts We thought we were free Three young folks fell to our right Countless more fell to our left Looking up, Far from the crowd We beheld Red-hot guns We thought it was oil But it was blood We thought it was oil But this was blood Heart jumping Into our mouths Floating on Emotion's dry wells We leapt in fury Knowing it wasn't funny Then we beheld Bright red pools We thought it was oil But it was blood We thought it was oil But this was blood Tears don't flow When you are scarred First it was the Ogoni Today it is Ijaws Who will be slain this next day? We see open mouths But hear no screams Standing in a pool Up to our knees We thought it was oil

But it was blood We thought it was oil But this was blood Dried tear bags Polluted streams Things are real When found in dreams We see their Shells Behind military shields Evil, horrible, gallows called oilrigs Drilling our souls We thought it was oil But it was blood We thought it was oil But this was blood The heavens are open Above our heads Toasted dreams in a flared And scrambled sky A million black holes In a burnt up sky Their pipes may burst But our dreams won't burst We thought it was oil But this was blood We thought it was oil But this was blood This we tell you They may kill all But the blood will speak They may gain all But the soil will RISE We may die but stay alive Placed on the slab Slaughtered by the day We are the living Long sacrificed We thought it was oil But it was blood

We thought it was oil But this was blood