Feral Jundi

Sunday, May 9, 2010

Somalia: Pirates Vs. Islamists–A Dispute Over Business

   Finally some reportage that gave some commonsense analysis on this latest move in Somalia.  Hizbul Islam are attacking pirate havens because they want to control the ports.  Shabab has their ports, and Hizbul Islam wants their ports.  It totally makes business sense, and strategic sense, if they want to capitalize on all the piracy related operations going on out there.

   Now what is interesting to me is how the media sucked into the spin that Hizbul Islam was trying to produce about their latest move.  That somehow what they were doing was righteous and piracy is an anti-islamic business. pffft. Whatever chews your khat. Bravo to Mr. Wadham for calling it like it is and getting the real story out.

   One final point.  We show sorrow and outrage over the tragedy in the Gulf of Mexico with the oil spill disaster there.  So my question is what happens when pirates take a chemical tanker (oops, that just happened) on behalf of an extremist group like al Shabab or Hizbul Islam, and they sink that thing or crash it into some western port? Will we then realize that assigning armed escorts to each boat/floating weapon system out there is something that should be required? Why must we wait for a disaster like this to happen, before we do something about it? –Matt

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Somali Pirates vs. Islamists: A Dispute Over Business

By Nick Wadhams/Nairobi

Friday, May. 07, 2010

Even by the jaded standards of the failed state of Somalia, this week’s news was enough to raise eyebrows: one of the country’s two competing Islamist factions, Hizbul Islam, stormed into the coastal city of Harardhere and drove out the pirates who have run amok in the waters off the Horn of Africa, wreaking havoc on global shipping and confounding the world’s navies.

“Piracy has become too much. It’s an anti-Islamic business, and we won’t accept it,” Hizbul Islam spokesman Sheik Mohamed Ali Abdinasr told TIME. “We want to bring law and order to that country of Somalia, and we want to show the good name of Somalis.”

But what may at first glance appear to be a showdown between two trends that have coexisted in relative peace in Somalia until now — piracy and Islamic radicalism — is actually a cunning power play for resources.

First, a bit of background. One of the best ways to thrive as a Somali businessman is to import just about anything — cars, food or clothing, for example. Very little gets produced in Somalia. And in the absence of central government authority, which collapsed 19 years ago, the best way for any armed group to finance itself is to control one of Somalia’s ports.

The Western-backed Transitional Federal Government gets much of its very limited revenue from the Mogadishu port, one of the few patches of Somali real estate over which it maintains control. Hizbul Islam’s capture of the pirate lair at Harardhere may have been motivated primarily by the fact that it was driven out of the southern port of Kismayo late last year by the al-Qaeda-linked al-Shabab militia. Experts say Hizbul Islam attacked Harardhere because it needed a new port to control.

“They lost their foothold in Kismayo when they fell out with Shabab,” says Roger Middleton, a piracy expert at the London-based Chatham House think tank. “Moving to Harardhere seems to me like a move to find some territory that they can control and to have a port in order to try to make some money.”

(more…)

Monday, April 19, 2010

Iraq: Schlumberger Oil Services Giant Builds A FOB For It’s Operations

    The company is finishing up work on a 40-acre compound near Basra. Earlier this month, several dozen employees moved in and set up a mobile barracks. Schlumberger said it expected to have 300 employees there by July and nearly double that by the end of the year.

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There are 36,000 oil field workers in Iraq, according to R. P. Eddy, chief executive of emerging markets consultant Ergo, and he expects that number to rise to 76,000 by 2015. 

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   So if anyone knows what security company they are working with, go ahead and put that in the comments or send me the stuff and I will make an edit. My guess is that this will provide a ton of jobs for Iraqis and expats–both for security work but all just oil industry work.  Something to keep an eye on. –Matt

Edit: 4/21/2010- This recent article in Businessweek details even more companies that are moving into Iraq.

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Schlumberger Gambles on Iraq Work

APRIL 16, 2010

By RUSSELL GOLD

(See Corrections & Amplifications item below.)

Schlumberger Ltd., the world’s largest oilfield service company, has begun staffing an Iraqi business operation, one of the first such moves by a western energy company in decades.

The company is finishing up work on a 40-acre compound near Basra. Earlier this month, several dozen employees moved in and set up a mobile barracks. Schlumberger said it expected to have 300 employees there by July and nearly double that by the end of the year.

Chief Executive Andrew Gould said in an interview from his office in Paris that he believes the security situation has improved considerably in the past year, and the opportunity to provide support to major oil firms is building. If security improves and oilfield work increases, a $3 billion to $4 billion market annually is possible by mid-decade, he said.

The situation in southern Iraq no longer resembles the chaos that engulfed the country five years ago. It has become “more traditional risk of tribal disturbance and banditry rather than any politically motivated security incident,” he said.

Unlike companies working in Iraq under government or military contract, Schlumberger symbolizes the nascent return by western corporations to the country, where many of the world’s largest oilfields are being opened up to foreign oil companies for the first time in a generation.

(more…)

Wednesday, March 24, 2010

Africa: East Africa Oil, AFRICOM Is In Position, And 10,000 Ugandans With Iraq Experience Are Ready

   This is a quick one I wanted to put out.  I was talking with friends the other day about the Ugandans in Iraq, and how significant their work is to the economy of Uganda.  The money brought in from security work, surpasses what is made off their chief export called coffee, and that is pretty significant.  So the question is, what happens when the work dries up in Iraq?  All of these Ugandan guards are going to be looking for work, and most of the security work in Afghanistan is going to the local nationals.

   So this is what I am starting to piece together, and I am going to take a guess as to where all these guards are going to go next.  I think the plan all along was to professionalize Ugandans for a whole slew of tasks that AFRICOM and the west has in mind for East Africa.  From dealing with Jihadists in Somalia with the AU force, to providing recruits for the Ugandan Army so they can deal with the LRA and others, to protecting this new ‘hot oil zone’ in East Africa.  Ugandans are gonna be in high demand, and we have effectively trained them up with the work in Iraq. Intentional or not, I thought it was interesting to make the connection for the big picture.

   This is not to say that this was the official strategy of the US and AFRICOM all along.  But you have to look at these three stories below, and not think ‘how convenient’?  lol The coming resource war is all about securing our place at the oil trough and making sure there are competent forces to protect that stuff. Thanks to Iraq, we now have a ton of ready made guards or ‘soldiers’ to make that happen.  Let me know what you guys think. –Matt

Edit: 06/11/2010- This is an excellent run down of the current dynamics of oil in this East Africa region.  Good job to Jody.

Uganda’s recent oil discovery has the chance to reshape relations with its neighbors and the West as energy multinationals eye potential opportunities

By Jody Ray Bennett for ISN Security Watch

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East Africa is next hot oil zone

March. 10, 2010

NAIROBI, Kenya, March 10 (UPI) — East Africa is emerging as the next oil boom following a big strike in Uganda’s Lake Albert Basin. Other oil and natural gas reserves have been found in Tanzania and Mozambique and exploration is under way in Ethiopia and even war-torn Somalia.

The region, until recently largely ignored by the energy industry, is “the last real high-potential area in the world that hasn’t been fully explored,” says Richard Schmitt, chief executive officer of Dubai’s Black Marlin Energy, which is prospecting in East Africa.

The discovery at Lake Albert, in the center of Africa between Uganda and the Democratic Republic of Congo, is estimated to contain the equivalent of several billion barrels of oil. It is likely to be the biggest onshore field found south of the Sahara Desert in two decades.

(more…)

Saturday, March 13, 2010

Iraq: Here Comes China And Their ‘Astonishing’ Oil Demand

   China’s demand for oil jumped by an “astonishing” 28% in January compared with the same month a year earlier, the International Energy Agency (IEA) says. 

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   Here is a quick run down on what China is doing in Iraq, and it is all about oil.  I find it interesting that China is getting more involved with really risky resource ventures in places like Iraq or the Congo. And what that means to this industry, is that the Chinese will find a way to secure these ventures and investments.  You will either see Chinese security folks, or they will use local nationals for the work.  But like with most security work, they tend to go with the kind of security they can really trust and depend upon for the most sensitive projects.  Especially to guard oil executives.

   The other thing about this that is frustrating, is that information about Chinese private security companies is very thin.  Maybe there is tons of stuff on Chinese servers?.  Who knows, but it is an area that I would like to learn more about as the fight for resources increases in the coming future. Our industry will only see more involvement in that resource war, and it is important to track this stuff.

   In Iraq, you could very well see a situation where you see Chinese security contractors rolling down the highway in SUVs, or posted at some gate of some oil facility. If any readers have any stories about bumping into Chinese military or contractors in Iraq, please feel free to post away in the comments.  Like I said, there is nothing written about Chinese PMC’s or PSC’s, and I would like to see Feral Jundi’s archives fill up with some more data about that.  I will keep looking, and if anyone finds anything else, let me know. Especially for Africa, because China is really involved there. –Matt

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Chinese guards at the Ahdab field Thaier Al-Sudan/Reuters 

Red Star Over Iraq

January 21, 2010

China’s ambitions in the Iraqi oil fields could change the landscape

By Stanley Reed and Dexter Roberts

It may be the start of the biggest oil job in the world. Each day, 20 workers from BP and China National Petroleum Corp. (CNPC) buckle down to the task of prepping the Rumaila oil field in southern Iraq for rapid development. In industry lingo, Rumaila is a “supergiant”—a 50-mile-long deposit of sweet crude with estimated reserves of 16 billion barrels, whose output may someday rank second only to Saudi Arabia’s vast Ghawar field. The Saudis, though, have carefully managed their oil assets for decades. In contrast, Rumaila, a lightly inhabited expanse of date groves and Bedouin encampments, has not had a proper upgrade since the 1970s. The Iraqis contracted with BP and CNPC last year (BP) to juice Rumaila’s production from 1.06 million barrels a day to 2.85 million, all in seven years. No one has ever tried such a ramp-up at a field as huge as this one. Putting Rumaila back in full working order will take tens of thousands of workers, 1,000 new wells, and billions in investment.

BP is the largest partner in the venture, but only by a dipstick: It has a 38% stake, while the Chinese hold 37% (the rest is owned by an Iraqi company). The media focus has been on BP’s decision to take up the Rumaila challenge for a low fee of only $2 for every barrel the venture produces. But the more important story could be China’s role. “CNPC’s involvement brings together the country with the most rapid growth in energy demand in history with the country that plans the greatest buildup of production capacity ever,” says Alex Munton, an Iraq specialist at Edinburgh-based oil consultants Wood Mackenzie.

(more…)

Monday, March 8, 2010

Bounties: $10,000 Reward For Information On Missing Energy Executive Doug Schantz

   Alright, lets find this guy.  The reward is split in half, with $5,000 from Crimestoppers of New Orleans and the other $5,000 coming from Sequent Energy Management. As this thing drags out, I am sure we will see this reward get bigger.

   It also sounds like police suspect foul play, and it will be interesting what other information comes out of any future investigations.  So for you guys that live in New Orleans, or in the south in general, this would be a good one to go after. Good luck and happy hunting. –Matt

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Houston Energy Executive Missing in New Orleans

08 Mar 2010

CHRIS STIPES

HOUSTON – Michael Schantz is hitting the streets of New Orleans to find his father.

Katy resident Doug Schantz, 54, disappeared Friday morning at approximately 2 a.m. after leaving a Bourbon Street bar. His credit cards and ATM card have not been used which is making New Orleans police suspect foul play.

“I’m just, you know, still in a little bit of shock. I just want to reach out, you know, to the city of New Orleans, the City of Houston, just please, help me find my father,” said Michael Schantz.Doug Schantz is the president of Sequent Energy Management in downtown Houston. He was visiting New Orleans with several employees to make a donation to his daughter’s university, Tulane.

But Schantz never showed up for the flight home.

“We want to find Doug. Doug is a dear friend to all of us. He’s built the company from nothing to 150 people. He is a true leader, a true friend,” said Sequent Energy Management employee Peter Tumminello.Co-workers and friends of the married father of three gathered in Katy on Sunday at the family’s upscale home to hope and pray for a safe return.

(more…)

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