“The Oil Road” – in search of a subtitle

Platform has submitted a complete manuscript of “The Oil Road” to Verso; it’s gone to the copy-editors now and will be published in May (with a different cover!).

But we’re still trying to pick a sub-title – do you have any suggestions? Here’s a blurb about the book, and we’ve copied some possible subtitles below.

Send us any new ideas or your favourites from the list below -  tweet us @platformlondon or email Mika. If you come up with the best suggestion, you get your subtitle on the cover of the book!

Continue reading

Wikileaks cables reveal BP cover-up in Azerbaijan

New Wikileaks cables about another major offshore gas leak in the Caspian give a rare insight into how BP attempts to control the public narratives when it hits crisis and failure. Writing a book about the company’s Caucasus pipelines, we’ve been all over the region, digging for the truth behind these events. Now the sudden release of documents allows a glimpse into the company’s preferred world of secrecy and back-room meetings.

On 17th September 2008 BP scrambled helicopters and rescue vessels to reach the Central Azeri oil rig far out in the Caspian Sea. Lying 130 kilometers offshore from Azerbaijan’s capital city Baku, the country’s largest platform was threatening to explode, with gas leaked rapidly from the seabed,. All 212 staff were rapidly evacuated and the platform was shut down, as were its sister platform, West Azeri. Oil production from the company’s Azeri-Chirag-Gunashli oil field (ACG) plummeted by 500,000 barrels per day.

As the Guardian’s publication of cables relating to the gas leak have revealed, BP was eager to prevent even its commercial partners knowing the full extent of the near disaster. The oil field is run by a consortium of ten companies, including ExxonMobil and the State Oil Company of Azerbaijan (SOCAR). With oil prices high, the shut-down meant a daily loss of $50 million. The gas leak was slashing BP’s partners’ revenue streams, so unsurprisingly Exxon et al were uneasy being kept out of the loop.

Given the importance of oil revenues to Azerbaijan’s budget, state pressure for disclosure might be expected, as Capitol Hill forced BP to provide live streamed video of the Macondo leak in May 2010. However the Wikileaks cables make clear that BP came under no such pressure in Azerbaijan, illustrating the close collusion between company and the Azeri autocracy. President Ilham Aliyev’s government recognises BP’s operations as crucial to propping up his regime, and extremely tight control of the Azeri media ensured that there was next to no coverage of BP’s crisis. The company’s position in the country is so dominant that the head of BP Azerbaijan is widely seen as the second most powerful man in the country .

When the gas leak struck threatening disaster for the Caspian Sea, both BP and the Azeri government were already uptight and nervous over their export pipelines, recently shut down by a combination of Kurdish rebel attack and the Russia-Georgia war.

Barely one month earlier in August, a vast explosion had ripped through the wooded valley near Refahiye in Turkey. Sheets of fire 80 meters high shot into the sky followed by an immense column of smoke as 30,000 barrels of oil from the Azeri fields went up in flames. The fire raged for 6 days, troops were deployed and government ministers arrived by helicopter. The ccompany’s pipeline was shut down and BP declared force majeure claiming ‘an act of terrorism’. Visiting the place of the explosion nine months later, farmers nearby were extremely reluctant to describe how their fields were covered in ash and the temporary evacuation of a village. In large part their silence came from the perception of this foreign-owned pipeline as a Turkish ‘state project’ and thus should not be criticised.

With their primary pipeline shut-down, BP routed Azeri oil through a back-up route. But on the night of 7th August 2008 a Russian fighter flew low near the village of Alkahi- Samgori in eastern Georgia, dropping bombs across a wide valley of grazing land. The Georgian government announced an attempted bombing of the pipeline, whilst BP strenuously denied this was the case. With repeated Russian bombing runs, Georgian Ministers kept making public statements to the West, hoping the US and NATO would be alarmed by the gravity of such an attack on one of Europe’s oil supply lines. But BP had no interest in a news story about the threats to its oil infrastructure; a company executive in Tbilisi told us they chose to ‘close down’ the story. Only five days after this first aerial attack, BP quietly shut down the pipeline. Eight months later, we stood in one of those craters peering out at the pipeline marker posts just yards away.

Within the month, disaster struck again, although this time it was a technical failure and BP’s own fault. But with all the turbulence over the previous months, the company wanted to keep the dampers on media coverage and avoid another story about its failures to run safe and secure operations in the Caucasus and Caspian. The Wikileaks material illustrates how one of the UK’s largest corporations chose not to share crucial information with even its closest partners, actively engaging and disengaging the media in constructing the public narrative of events.

James Marriott and Mika Minio-Paluello of PLATFORM are co-authors of the forthcoming book The Oil Road – to be published by Verso in June 2011.

Cables released by the Guardian on BP in Azerbaijan include:
Aliyev changes tune after Georgia invasion, says BP
BP says ‘rush job’ by Turks on gas pipeline is ‘not inconceivable’
BP under fire over handling of gas leak incident
BP blames gas leak on ‘bad cement job’
BP may never know cause of gas leak, US told

The power of finance: Remp from Baku oil to offshore wind

“Where are they now?” is one of the questions PLATFORM likes to ask about former BP & Shell corporate executives.Brian Anderson, head of Shell Nigeria in 1995 when Ken Saro-Wiwa was executed, is now CEO of Addax Petroleum operating in the Niger Delta, Cameroon and Gabon. Meanwhile John Manzoni, Head of BP Refining at the time of the Texas City refinery explosion in 2005 which killed 15 is now CEO of Talisman Energy. Talisman drills in Iraq, as well as indigenous Achuar territories in the Peruvian Amazon, where local communities oppose oil extraction and say the company is inciting conflict.

But a different future seems in store for one of Anderson & Manzoni’s contemporaries. Steve Remp – the man whoopened the Caspian oil industry to BP and Western oil companies in the 1990s – is going green.

Remp’s company Ramco – famous for its early moves into “risky” frontier regions like post-Soviet Azerbaijan and post-Saddam Iraq has announced a shift of strategy to focus on offshore wind power. The company will change its name to SeaEnergy PLC and “exit from existing interests in Oil & Gas in an orderly fashion to maximize value”. This will create the first UK listed company focused purely on offshore wind.

Did Steve Remp have a sudden change of heart and decide that foreign companies drilling wells in Iraq was not the best for climate or population? Possibly. But reading Ramco’s formal announcement to the London Stock Exchange also highlights the importance of campaigning to shift finance & bank lending from fossil fuels to renewable energy.

In June 2008 the Ramco Board stated that:

”it believed the two most significant energy stories of the next two or three decades would be the global growth in renewable energy and the opening of Iraq to western technology and that Ramco could be a player in both opportunities through its subsidiary and associate company activities.”

Hence Ramco created a dual strategy of focusing efforts on the establishment of an Iraq-based oil service company focused on drilling high productivity wells and on securing offshore wind acreage in the North Sea.

But by summer 2009 it had become apparent to the Board that:

“the cleantech or green investment funds, which are enthusiastic about the SERL team and its renewables strategy, are reluctant to invest either directly in SERL, a private subsidiary of Ramco, or in a listed plc with a significant oil and gas focus.

The Board, and its advisers, have considered and investigated various funding options open to SERL and have concluded that the best way for Ramco shareholders to retain the maximum interest in the valuation uplift the Board expect as SERL develops its offshore wind farm acreage, is for Ramco to make an orderly exit from its oil and gas interests and for it to become a renewable energy pure-play.”

Hence PLATFORM’s campaign to shift the flow of finance from fossil fuels to renewable energy.

 

BP keeps digging deeper under Caspian

The main workhorse of Azeri oil production – the Azeri-Chirag-Guneshli field – will peak in 2010, due to BP and consortium members driving an aggressively fast extraction programme. As the revenues poured in over the last eight years, the state budget soared, covering military expansion, President Aliev’s opulent lifestyle and doubtful infrastructure projects including a billion-dollar road bridge in the middle of Baku.

With those in power loath to cut their budgets, the Azeri government is desperate to increase future oil extraction potential. Hence the State Oil Company (SOCAR) is opening up Azerbaijan’s last oil prospects. BP seemingly got first pickings in mid-July, signing an agreement to explore Shafag & Asiman zones deep below the Caspian.

As part of the government’s plan to ensure that all of Azerbaijan’s offshore waters are fully exploited this MOU gives BP the exclusive right to negotiate a production sharing agreement to explore and develop the block, which lies some 125 kilometres (78 miles) to the south east of Baku.

The seabed below the Azeri-controlled section of the Caspian is already well explored – this is a step closer to “full exploitation”. But this agreement is not only the product of the Azeri elite opening up its oil fields further and BP’s management pursuing future profits. Since the early 1990s, British foreign policy has placed an emphasis on prising oil reserves in the former Soviet Union away from Russia. Hence, while the agreement will have been previously negotiated elsewhere, the signing ceremony was orchestrated during a meeting between British Prime Minister Gordon Brown and Azeri President Ilham Aliev.

The MOU was signed today in London, in the presence of HE Ilham Aliyev, President of the Republic of Azerbaijan, and UK Prime Minister Gordon Brown, by Rovnag Abdullayev, President of SOCAR, and Andy Inglis, BP’s Chief Executive of Exploration and Production.

The man responsible for landing this deal is already on his way elsewhere. BP Azerbaijan President Bill Schrader has been appointed Chief Operating Officer for TNK-BP, the Russian joint venture that has faces a struggle for control between Russian shareholders and BP. Before spending three years expanding the Baku-Ceyhan pipeline and bringing the mega Shah Deniz gas field on stream, Schrader was based in Indonesia, making the controversial Tangguh LNG project in occupied West Papua a reality.

Industrialising the Cukurova

After a cushy night on the Ankara – Adana Mavi Cukurova night train, we jumped straight into a coach headed east to Antakya. Once the grand city of Antioch benefiting from trade routes running between Europe & South Asia, medium-sized Antakya is the last Turkish town before Syria, and the source of an ongoing border dispute between Syria and Turkey.

With the temperature display hovering around 34 C, our bus passes field upon field of roasted brown sunflowers to our south, in the fertile Cukurova plain. After being reclaimed from marshland in the late 19th and early 20th Century, the plain became a malaria-filled hell for poor migrant workers from the mountains to our north and the site of local resistance against brutal landlords, described by Yashar Kemal in Ince Memed & other novels:
“I’ve been picking cotton in this accursed Çukurova for fifteen years […] and I’ve never known such a heat nor seen so many mosquitoes.” […] “We’ve never seen such wonderful cotton either, Anakız sister,” [Memidik] murmured. “The hotter the weather, the better the cotton crop.”
Today Cukurova’s soil produces the watermelons piled up outside London’s Turkish & Kurdish corner stores, and continues to rely on seasonal Kurdish migrant workers.

As the bus curves around the Bay of Iskenderun from North to East, orange groves with thick green leaves and purple thistles line the roadside, with teasing views of the sea through the trees. Six supertankers can be seen waiting just off the coast, ready to collect oil from BP’s Heydar Aliev Marine Terminal – named after the former Azeri dictator and father of the current one. Each ship will collect 500,000 barrels of thick black crude oil, before chugging across the Mediterranean and delivering its load to refineries at Fawley (near Southampton), Trieste or Augusta in Sicily over the next ten days. Together, the supertankers will move half a million tons of crude closer to the atmosphere.

Fourteen days previously, these 500,000 tons of oil were neither in barrels, tankers nor split up into any type of corporate storage container. They lay still, part of a large viscous mass of former organic material, thousands of metres deep beneath the Caspian, as they had for many millennia.

Thirteen days previously, the pressure changed abruptly with a strong suction force, and the crude began to move first sideways towards a funnel and then straight up – slurp – several kilometres through wide pipes – to the sea surface. One of BP’s Azeri-Guneshli-Chirag rigs out in the middle of the Caspian was sucking it up. Once on the move, BP didn’t let the heavy black liquid stop. Eight power stations forced the 500,000 tons at 6 kilometres every hour across the Azeri desert, Georgia’s Borjomi mountains & nature reserve, Turkey’s north-eastern plateaus, along the Euphrates and then down to the Cukurova – ready to be sold on in tanker loads of either 80,000 or 130,000 tonnes.

Across the bay, a plume of smoke ascends from Isken coal plant – financed by the Germany’s Export Credit Agency Hermes with over $700 million in 2000 and built by Siemens in the years after that. BP’s oil terminal and Siemen’s coal plant were followed by various other industrial projects. A myriad of confusing jetties now protrude out into the bay, one next to the other. Fisherfolk and villagers believe that the industrialisation of their coastline and resulting chemical emissions and discharges is causing crops to die and killing fish. Several cases have been filed in local courts demanding compensation.

Briefly, I catch a glimpse of Burnaz beach – used by the people of nearby Erzin to escape from the oppressive summer heat and dip into the sea. Although I can’t spot them at this distance, on a hot summer day like today there’ll be boys playing football in the sand, teenage girls rafting in the surf on inflatables and families introducing toddlers to the water.

The Turkish state and several coal companies are planning to build 5 new coal power stations [Termik Santral] on this four kilometre stretch. This will destroy Erzin’s beach and poison the nearby orange groves – the primary local product and source of income. The five plants together will total more than 4000 MW – more than Drax, the largest coal plant in Britain.

There is strong local opposition in an area not known for resisting, with local residents particularly worried about the health impacts. The first demonstration had up to 1,000 people on it, with several protests since, led by the Erzin Volunteers Group. National support has come from Greenpeace Mediterranean in Istanbul, with the Rainbow Warrior arriving to block coal deliveries to the existing Isken plant in September 2008.
Over 40 new coal plants are planned across Turkey – almost all to rely on imported fuel from South Africa and Russia. Local community campaigns resisting the proposed plants have sprung up everywhere, and are increasingly linked up.

The Cukurova is known for its oranges and its prawns – the heavy industrialisation heralded by BP’s arrival threatens to change this.