WASHINGTON, April 1 (UPI) -- Two reports published on Mar. 29 revealed that an investigation into BP's Baku-Tbilisi-Ceyhan pipeline alleges human rights abuses. British taxpayers have funded producing the report with loans from the World Bank, the Export Credit Guarantee Dept (ECGD) and the European Bank for Reconstruction and Development (EBRD). Environmental and human rights groups are requesting that the development banks explicitly screen projects for their potential human rights impacts. Kurdish Human Rights Project, the Corner House, Friends of the Earth and Environmental Defense published their findings following the research in the Ardahan and Imranli regions of Turkey along the pipeline's route. Kurdish human rights activist Ferhat Kaya was detained and allegedly tortured in May 2004 as a result of his work with villagers affected by the pipeline. Kerim Yildiz of the Kurdish Human Rights Project said: "We recommend that the project lenders now come to terms with the context in which this project is being implemented, including the capacity of BOTAS (the Turkish company responsible for constructing the pipeline in Turkey) and the Turkish Government to ensure fair expropriation and compensation practices. This should include much closer and more independent oversight, monitoring and scrutiny by project lenders." Nick Hildyard of The Corner House said: "The UK government has admitted to parliament that there have been significant breaches of project standards but claim they do not justifying suspending the loan. Whilst BP continues to get its money, many affected villagers are still waiting the compensation that is owed to them. Protestors face intimidation, detention or worse, with little prospect of a fair trial." Friends of the Earth International Finance Campaigner Hannah Ellis said: "BP's project is resulting in human rights abuses on the back of development bank finance. Ferhat Kaya's trial highlights the failure of the project's attempts at consultation with those affected. BP and the banks involved must do more to ensure that the work they fund is not breaching fundamental environmental and social standards."
Indian Oil Corporation (IOC) and Saudi Aramco signed a Memorandum of Understanding (MoU) on Mar. 30. Saudi Aramco's Senior Vice President of Exploration and Production Abdullah S. Al-Saif, a signatory to the MoU, said: "India is a very important country for us, and we usually complement such close relationships by going beyond the supply of crude oil and entering into downstream partnerships. We look forward to achieving such a goal with India." Under the agreement, the two countries will increase cooperation in Research & Development, production of cleaner fuels, refinery process improvements, corrosion control and bioremediation, a process of using living organisms to clean up oil spills or remove pollutants. First Secretary (Commercial) at the Indian Embassy Azar Khan said that India imported $4.7 billion worth of Saudi oil, 26 percent of its oil needs in 2003. Indian Minister of Petroleum and Natural Gas Mani Shankar Aiyar cited Saudi Aramco's emphasized: "I would like to see Saudi Aramco as a partner in India's refining and marketing sector." India currently imports 24 million tons crude oil from Saudi Arabia.
South Korea's largest refiner SK Corp announced on Mar. 31 that the company has acquired a controlling stake in an oil field currently being explored in the United States. SK Corp secured an 87.5 percent stake in the Iberia North oil field in southern Louisiana through its U.S. subsidiary SKE&P at the end of 2004. Running an oil field for the first time since the company failed in its 100 percent stake oil development project in Myanmar in 1989-93, SK Corp has acquired 10-20 percent stakes in overseas oil and gas fields in a number of countries to include Egypt and Yemen. SK Corp looks to increase overseas oil exploration projects through a variety of corporate strategies and become a new supplier in the Asia-Pacific region. The company currently participates in exploration, development and production in some 19 oil and gas fields in 11 countries; SK Corp aims to boost company oil reserves from 300 million barrels in 2004 to 500 million barrels by 2007. SK Corp is the holding company of SK Group, the country's fourth-largest conglomerate.
Turkish Energy Minister Hilmi Guler announced on Mar. 28 his concern about the increasing traffic in the Bosphorus and the Dardanelles straits, which could erupt into a serious oil disaster if an oil spill occurs, endangering the environment and human safety. Oil tanker traffic through the straits had increased 50 percent in the last three years. Guler said before Caspian and Black Sea Oil and Gas Conference in Ankara: "New pipeline routes are necessary so that there are no more threats to Istanbul, a city of 15 million people, to the environment, or to the ability to bring oil to the market." Guler also emphasized that Turkey is the most reliable and feasible route to transport Caspian oil and gas reserves to international markets. The Caspian and Black Sea Oil and Gas Conference was a three-day event that has brought together Caspian, Central Asia and Black Sea energy ministers and senior state oil and gas company representatives from Turkey, Russia, Iran, Kazakhstan, the United States, France, Germany, Pakistan, Greece, Georgia, Ukraine and Bulgaria.
A Chinese government official has asked Japan on Mar. 31 not to prospect for natural gas in disputed areas of the East China Sea. Chinese Foreign Ministry spokesman Liu Jianchao stated at a press briefing: "We ask that the Japanese side not undertake any activities to complicate this situation." Japanese Foreign Minister Nobutaka Machimura said on Mar. 30 that Japan "has to act soon" if China chooses to act; China National Offshore Oil Corp (CNOOC) has announced that the company intends to begin drilling in August in an area approximately 3.1 miles beyond a territorial median line declared by Japan, but unrecognized by China. Machimura said that Chinese drilling could hit a gas vein extending into Japanese waters, exacerbating tensions between the two countries. Japan and China have yet to confirm the presence of oil or gas in the disputed. Liu continues to maintain that China's proposal to Japan that the two countries should conduct prospecting activities together.
In May, the International Court of Justice will hear the lawsuit filed by U.S. Frontera Resources against the State Oil Company of the Republic of Azerbaijan (SOCAR). SOCAR President Natig Aliyev emphasized that the Court will find the suit completely groundless. Frontera Resources has claimed that the company had technical difficulties several years ago while working in Azerbaijan and demands compensation for damages. The amount of the claim for compensation has yet to be revealed. Frontera Resources held a 30 percent stake in the development of the Azeri Kursanghi and Garabagli offshore oil fields. The company transferred its stake to EBRD after it was unable to repay the loan it borrowed from the bank; the shares were later sold to a Chinese company.
Closing oil prices, Apr. 1, 3 p.m. London
Brent crude oil: $55.01
West Texas intermediate crude oil: $55.78
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