Feral Jundi

Wednesday, December 22, 2010

Iraq: Oil News–Local Security Firms Running A ‘Mafia’ To Artificially Inflate Prices

     This is a great little article that gives a snap shot of the current oil security business in Iraq. It also mentions the Chinese security teams operating there and some of the issues they have faced. For a quick primer on this, I posted some stuff about China’s plans in Iraq.

     Basra is also really bad for this kind of thing. It is to be expected that these Iraqi companies would try to inflate prices and jerk around the oil companies.  Haliburton and others should not be surprised that these local companies would be like this. –Matt

WikiLeaks cables: Iraq security firms operate ‘mafia’ to inflate prices

Halliburton executive’s comments reveal tensions between security firms, oil companies and the Baghdad government

By Rajeev Syal

Tuesday 21 December 2010

Halliburton’s senior executive in Iraq accused private security companies of operating a “mafia” to artifically inflate their “outrageous prices”, according to a US cable.

Written by a senior diplomat in the US’s Basra office, the confidential document discloses the tensions between private security firms, oil companies and the Iraqi government as coalition forces withdraw from protecting foreign business interests.

John Naland, head of the provincial reconstruction team in Basra, wrote in January this year that several oil company representatives complained of “unwarranted high prices” given an improving security situation since 2008.

“Halliburton Iraq country manager decried a ‘mafia’ of these companies and their ‘outrageous’ prices, and said that they also exaggerate the security threat.

“Apart from the high costs for routine trips, he claimed that Halliburton often receives what he says are ‘questionable’ reports of vulnerability of employees to kidnapping and ransom. He said that he recently saw an internal memo from their security company which tasked its employees to emphasize the persistent danger faced by IOCs [international oil companies].” Naland wrote.

(more…)

Friday, October 29, 2010

Equatorial Guinea: Mann Returns To EG To Consult For Dictator That Imprisoned Him For Coup Attempt

      From being convicted and imprisoned for trying to overthrow Obiang, to becoming a consultant for the guy? Weird. Although one thing is for sure, Simon would be the ‘go to guy’ in order to sniff out other coups being planned against Obiang.

     The other thing that is interesting here is that Simon might actually be in a position to ‘influence’ Obiang, which the oil companies would really like. From what I have read, the oil companies hate dealing with this extremely corrupt nation and leadership, and I would too. Having a guy that has a leader’s ear like this, makes things a lot more easier when negotiating deals. (kind of like The Last King of Scotland movie)  Stay tuned, because this story just keeps getting weirder as time goes by. –Matt

Mann back in Equatorial Guinea – to work for leader he tried to oust

Mercenary advises Equatorial Guinea president

Simon Mann

Mann back in Equatorial Guinea – to work for leader he tried to oust

By Kim Sengupta

25 October 2010

Simon Mann’s incarceration in a brutal prison for attempting to overthrow one of the most notorious dictators in Africa was turned into an international cause célèbre in a long and vocal campaign by family friends.

The former SAS officer is now free and has just taken up his first proper “day job” since his release: working for that very same ruler he was determined to depose, Teodoro Obiang Nguema Mbasogo of Equatorial Guinea.

At the time of the bungled coup in 2004, Mr Mann is said to have declared to his friends that he was helping to deliver the people of the benighted nation from the depredations of their appalling leader, who had been accused, among other things, of being a cannibal.

(more…)

Thursday, October 28, 2010

Industry Talk: Russia Eyes Security Firms To Defend Assets Abroad

     Amid the global economic crisis, the security guard industry remains a haven for those Russians not afraid of danger or boredom.

     The Russian private security business has seen a number of cuts and layoffs in the last year. However, the workforce still accounts for up to 750,000 guards, making it one of the biggest in the country.

     Aleksandr Mikhin, a spokesperson for a Moscow-based Alligator Security Company, which has been in business for 16 years, says companies have started reconsidering their contracts with security firms, trying to optimize their spending.

     But security is usually the last thing businesses are ready to sacrifice. And in an economy such as this, increased concern about crime, vandalism and terrorism is forecast to raise the need for security. 

     Adil Mukashev, an independent expert on terrorism issues based in Almaty, Kazakhstan, said the security firms will likely employ ex-military from Russia’s mainly Muslim North Caucasus region, where an Islamist insurgency is raging.

“This will kill two birds with one stone — give men work in a region with high unemployment and drive them away from radical Islam,” Mukashev told Reuters.

    An interesting little side fact is that I get a lot of readers from Russia checking out the blog. With over 750,000 guards in Russia, now I know why! lol But what is really interesting is the idea of exporting this pool of guards to protect Russian assets abroad. This is the territory I like to explore.

     The article only mentioned oil and mineral assets abroad, but there are other areas that would be of Russia’s best interest to take part in. Specifically, if they plan on allowing NATO to use their railways to transport weapons and whatnot. This will make railways a bigger target for terrorists, and increased traffic will increase exposure. Especially in Northern Afghanistan, because the Taliban and company will do all they can to attack that railway or to steal from it. For investors to trust these lines, there must be adequate security for them.

     Private security firms also allow Russia to participate in Afghanistan, and yet not appear to be involved militarily with it’s own troops. So if they want to help NATO and get some sweet deals in return (dealing with Georgia, etc.), as well as not get sucked in militarily into Afghanistan, they could easily assist via private military firms. Trainers for all types of things, like police or military, or even the pilots of all these Mi-17’s that Afghanistan is buying, could all be drawn from private firms.

     Add to that the legions of Afghan war veterans that Russia has who could be called upon for these contracts. That’s if Russian parliament says it’s cool? The money is what will be doing the talking here, as well as the security situation and unemployment realities of that country. All I know is NATO seems to be pretty interested in including Russia into the Afghan game.

    There is also the maritime security industry, and I am sure Russia would be eyeing ways to protect their shipping assets privately as well. These companies could also offer their services elsewhere, if legally allowed to do so by Russia.

     I am also interested in the other quote up top about using this as a means of employing out of work folks and keeping them away from Jihad? Would sending them to Iraq to defend a company like LUKOIL be a good thing or a bad thing for a muslim from the Northern Caucasus? –Matt

Russia eyes security firms to defend assets abroad

Russia to continue supplying Afghan army and police

Hold it right there

Russia eyes security firms to defend assets abroad

October 28, 2010

* Russia wants private security for assets in conflict zones

* Ex-military personnel could be from volatile N. Caucasus

By Amie Ferris-Rotman

Russia is preparing legislation to set up private security firms using ex-soldiers and police to protect its oil, gas and mineral holdings in conflict zones abroad, a lawmaker and ex-KGB officer said in an interview.

Up to 1,000 security personnel would operate along the lines of U.S. and British private security firms, said Gennady Gudkov, a deputy in Russia’s lower house of parliament, known as the Duma.

“It will be expensive but unfortunately it is very necessary,” said Gudkov, an influential member of the pro-Kremlin Fair Russia party and a former KGB officer who sits on parliament’s safety committee.

“As long as Russian firms are operating abroad, this is in the interest of the state,” he told Reuters, referring to Russia’s need to protect strategically important companies.

(more…)

Wednesday, September 8, 2010

Mexico: Drug Cartels Cripple Pemex Operations In Basin

     This sucks for Mexico and Pemex, but until they do the things necessary to properly secure these pipelines, then they will continue to lose their so called ‘backbone of the nation’. If Pemex cannot trust local Mexican security companies, then hire globally. There are plenty of companies around the world who are providing security to oil companies operating in places like Iraq. Mexico is at war with these cartels and it would make sense to deploy military or contract security with experience in war zones to secure this vital national asset.

     Either lose that money to thieves, or spend that money to defend your property and livelihood. That is my thought on the matter.

     One other point that comes to mind about this troubling issue. If the drug cartels could do this to Pemex and Mexico, then why couldn’t they do this to oil platforms/drilling rigs? Especially the US owned rigs, because eventually the cartels are going to want to send a message to the US. Our money is helping to fuel Mexico’s war against the cartels, and we are naive to think that our actions will not invite any retaliation. Imagine a dozen BP style disasters? All I know is that if oil companies have not posted security on each rig, then we are giving an open invitation to terrorists and criminals to do all sorts of terrible things. –Matt

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Mexican drug cartels cripple Pemex operations in basin

September 06, 2010

By Tracy Wilkinson

The meandering network of pipes, wells and tankers belonging to the gigantic state oil company Pemex have long been an easy target of crooks and drug traffickers who siphon off natural gas, gasoline and even crude, robbing the Mexican treasury of hundreds of millions of dollars annually.

Now the cartels have taken sabotage to a new level: They’ve hobbled key operations in parts of the Burgos Basin, home to Mexico’s biggest natural gas fields.

(more…)

Wednesday, May 12, 2010

Kidnap And Ransom: Pemex Executive Kidnapping Rattles Mexico Oil Industry

   Between the kidnappings and the pilfering of the oil by cartels, Pemex has some issues.  Just one suggestion for Pemex, and that is if you want to retain some of that oil and stop paying ransoms, then make the investment in a competent security company to protect your stuff and people.  You can buy some pretty kick ass security for well under the 750 million dollars that you are losing every year (on top of what ever you are paying for in ransoms). –Matt

Edit: 5/20/2010 – Check out this story about former Mexican presidential candidate that was kidnapped recently.

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Pemex exec kidnapping rattles Mexico oil industry

May 11 2010

By Robert Campbell

Driving home along rough, poorly lit roads to the southern Mexican city of Villahermosa, an oil executive and his driver stopped at a roadside eatery for dinner when they were cornered by armed men.

The gunmen seized Nestor Martinez, who manages a production unit for energy monopoly Pemex in the oil-rich state of Tabasco, and sent his driver on to deliver the news he had been kidnapped, industry sources say.

Martinez was released a few days after his abduction last month but a spate of kidnappings of Pemex executives has shaken the oil industry in a country where drug cartels and organized crime gangs are increasingly spooking foreign investors.

“Everyone has heard about it but there has been no official statement. It’s really frightening,” said a Pemex employee in Villahermosa, who declined to be identified because he is not authorized to speak with reporters.

A Pemex spokesman declined to comment on the case, and the industry sources could not confirm local media reports that a large ransom was paid to free Martinez, also president of the national petroleum engineers’ association.

Mexico is in the grip of a brutal drugs war that has killed some 23,000 people, mainly traffickers and police, since President Felipe Calderon took power in late 2006. The army crackdown launched by Calderon has fanned turf wars between rival gangs and battles against security forces.

(more…)

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