BP polluters, pals of dictator Mubarak

This satiric video from Britain is called BP wins Greenpeace ‘greenwash’ award.

There is still another side to the analysis here below. Joschka Fischer, ex-Foreign Affairs minister of Germany, calls himself “Green”; but is in fact up to his neck in the dirty business of Big Oil corporations including BP and the Egyptian Mubarak dictatorship.

From Pambazuka News:

Egypt: BP Support for Mubarak Dictatorship Revealed

Mika Minio-Paluello

17 February 2011

Egyptian protestors were furious at Mubarak for upholding his own interests and those of Western powers and foreign companies at the expense of the country’s people. Mika Minio-Paluello takes a closer look at oil company BP‘s relationship with the regime.

The millions on the streets of Cairo, Alexandria and Suez were furious at Mubarak for upholding his own interests and those of Western powers and foreign companies at the expense of the Egyptian people. For decades, British and American oil companies worked hand in glove with the Egyptian dictatorship, enjoying its ‘stability’ (lack of democratic change), ‘security’ (repression of dissent) and ‘favourable business environment’ (neoliberal policies and restrictions on trade unions).

Since Egypt’s first oil field at Gemsa came into production in 1910, the country’s resources have been dominated by London-based corporations. Back in the early 20th century, Anglo-Egyptian Oilfields – a joint venture of present-day BP and Shell – was the major operator in the country. A century later, vast chunks of the Gulf of Suez, Western Desert and Nile Delta remain long-term concessions granted to the same two companies, plus Reading-based BG.

BP is particularly proud of its ‘strong relationships with the Egyptian government’, boasting that it is the single largest foreign investor in the country and responsible for almost half of Egypt’s entire oil production, easily overshadowing all competitors. Describing itself as a significant part of the Egyptian oil industry for more than 45 years, the company witnessed Hosni Mubarak’s rise to power as Head of the Air Force and then Vice-President under Anwar Sadat, before he gained complete control in 1982. BP continued to extract crude oil and underwrite repression throughout more than four decades of Emergency Law, investing over $17 billion in oil rigs and pipelines. Billions of dollars in revenue payments enabled Mubarak to build up and arm both his civil and paramilitary police forces and the army.

In exchange, the regime ensured that its Western corporate allies profited handsomely over the years. Privatisation and reduced state involvement in the economy during the 1990s pleased the IMF, made billions for Mubarak’s associates and increased incentives to Western oil companies. Exploration and production concessions were made yet more profitable, with increased cost recovery allowances, larger blocks and longer license periods.

In parallel, harsh restrictions on freedom of expression, social movements and civil society reduced space for Egyptians to raise environmental concerns. In this context, BP has continued to drill new wells in the coral-rich but threatened Red Sea, including in its North Shadwan concession near the SS Thistlegorm, a British armed Merchant Navy ship sunk in 1940. Expanded oil extraction in these waters threatens the Egyptian tourist industry in Hurghada and the Sinai, especially after a major oil spill in June 2010. The Ministry of Petroleum, praised by BP, attempted to cover up the leak by claiming it was caused by a passing tanker discharging ballast.

With such limited environmental oversight, BP has been eager to drive ahead with new prospects, ‘drilling to reach reservoir technical limits’. The company aims to create ‘a new profit centre’ in the Nile Delta offshore region by introducing its deepwater ‘expertise’ from the Gulf of Mexico.

By investing $1 billion a year into the country and making Egypt one of its 14 global Strategic Performance Units, BP emphasized the faith it places in its relationship with Mubarak’s government. Hesham Mekawi, Chairman of BP Egypt, has lauded ‘the stability of the country’, insisting that British oil investors will have a sustainable business in Egypt for years to come. When the regime felt threatened only months ago by a potential US Congress resolution demanding that Mubarak ‘hold fair elections, allow international monitoring of elections, and respect democracy and human rights’, BP allowed the American Chamber of Commerce in Egypt, in which it is one of the primary players, to lobby hard and successfully to scupper the debate in Congress.

The company that brands itself with green images of sustainability and responsibility has taken a simple approach to corporate social responsibility (CSR) in Egypt: Providing a handful of scholarships to Cambridge each year alongside continued support for the dictatorship.

So now that we’re witnessing a vast popular uprising across Egypt, has BP ended its allegiance to and support for the dictatorship? The company’s website carries no comment on the democratic protests or the regime’s attempts at repression, referring only to ‘the ongoing unrest in Egypt’ and evacuation plans. Meanwhile, drilling and extraction operations continue unabated, with most oil facilities located out of reach of normal street protests. BP is assuming that Egypt’s strong army will guarantee the security integrity of its assets, and it continues to pay revenues to and underwrite a regime now widely accepted as illegitimate.

Demands from the democracy activists sweeping Egypt include ‘Putting on trial all those responsible for the policies of impoverishment and torture’. Will BP Egypt Chairman Hesham Mekawi and BP ex-CEO Tony Hayward answer for their part in enabling and supporting Mubarak’s repression? Or will the company’s faith in strongman politics be rewarded by relative continuity through a revitalised military regime?

Mika Minio-Paluello is a community support campaigner at PLATFORM.

The latest gas deal between BP and Egypt – who profits? MEE investigates: here.

The Arab revolution has reached the tiny Gulf state of Bahrain, where Sunni rulers control a majority Shiite population. Western nations are following the protests with concern: If the unrest spreads to the Shiite minority in neighboring Saudi Arabia, it could affect the world’s most important oil-producing region: here.

Prime Minister David Cameron was labelled a hypocrite today for touring the Gulf to flog British-made weapons used for torture and oppression in the region at the same time as calling for “greater democracy” from the self-same states.

Britain: Students occupy the LSE in solidarity with Libyan revolt: here.

From Democracy Now! in the USA:

Researchers in the Gulf of Mexico have found dead baby dolphins are washing up along the Mississippi and Alabama coastlines at 10 times the normal rate. The Sun Herald newspaper in Mississippi reports that 17 young dolphins have been collected along the shorelines so far this year, the first birthing season for dolphins since the massive BP oil spill. Deaths in the adult dolphin population have also risen sharply over the past nine months. Meanwhile, a top marine scientist, Samantha Joye of the University of Georgia, has revealed that large amounts of the oil from the BP spill remains stuck on the sea floor bottom in the Gulf of Mexico, decimating life on parts of the sea floor.

I came across an ad for the New Orleans Jazz & Heritage Festival recently. It looks to be a great lineup this year: Arcade Fire, Lupe Fiasco, Wilco, Trombone Shorty, Lauryn Hill, Mumford & Sons, Sonny Rollins, the list goes on. Then I spied the main sponsor: Shell Oil. I thought it was a joke at first. True, it wasn’t this particular oil giant who recently spilled millions of gallons of crude into the Gulf, devastating the ecosystem and taking an untold toll on the local economy. Still, this seems in poor taste: here.

Shell oil exploration threatens one of the world’s great wonders. Anglo-Dutch conglomerate applies for permit to drill just 30 miles off World Heritage-listed coral reef in Western Australia: here.

15 thoughts on “BP polluters, pals of dictator Mubarak

  1. Jordan to Gaddafi: End the violence

    JORDAN: Foreign Ministry spokesman Mohammed Kayed urged Libyan leader Muammar Gaddafi today to halt his bloody crackdown on anti-government protesters.

    About 500 people, including eight Jordanian women MPs, trade unionists and leaders of the Muslim Brotherhood — Jordan’s largest opposition group — gathered outside the Libyan embassy in Amman, demanding Gaddafi’s removal.

    In recent weeks Jordan has been the scene of weekly protests by opposition groups demanding far-reaching political reform, but marches have largely been peaceful.


    Political prisoners released by king

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    The royal decree covers several Shi’ite activists accused of plotting against the state.

    Government spokeswoman Maysoon Sabkar said it was unclear how many protesters would be freed.

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    He called the prisoner release “a good step” and a “positive gesture.”


    Rally of 5,000 calls for leader to go

    YEMEN: About 5,000 anti-government protesters rallied in al-Shiher in eastern Yemen today calling for the removal of the country’s president.

    President Ali Abdullah Saleh, the target of widespread protests for the past three weeks, has said he will not step down before the end of his term in 2013.

    However he has pledged that security forces will not fire on protesters.

    Medical officials have said 11 people have been killed in protests this month.

    Police stood by today as demonstrators marched in al-Shiher chanting “Down, down with Saleh.”

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  2. * FEBRUARY 22, 2011, 10:51 P.M. ET

    BP To Get Iraq Field Upgrade Costs, Remuneration Fees

    By Hassan Hafidh

    BAGHDAD (Dow Jones)-BP PLC (BP.LN) and its partner China National Petroleum Corp. will be the first companies to be paid back by the Iraqi government for developing Iraq’s supergiant Rumaila oil field, a senior Iraqi oil official said.

    “The first company that we are going to pay back costs and remuneration fees to will be BP,” Abdul Mahdy al-Ameedi, head of the Iraqi oil ministry’s petroleum contracts and licensing directorate, told Dow Jones Newswires.

    Ameedi said payment to BP is expected to start either in March or April. He didn’t provide further details.

    Iraq signed over the last 14 months some 12 deals to develop one of the country’s vast oil fields. According to the terms of the service contracts Iraq signed with the firms, Baghdad has to start paying back the costs of developing these fields and remuneration fees when they achieve a 10% increase in production.

    BP said last month that it had raised production at Rumaila by more than 10% above the initial level of 1.066 million barrels a day, but Ameedi said in a previous interview with Dow Jones Newswires that Rumaila is now producing almost 20% more oil than before, or 1.275 million barrels a day.

    For every extra barrel of oil production BP and CNPC squeeze out of the field above the 10% milestone, they will receive a payment of $2. They would be also paid back costs for developing the field, which holds some 17 billion barrels oil reserves.

    BP had said that it alone would invest some $15 billion in the project across the course of the 20-year contract. Independent oil industry sources had said that BP and its partner would make up to 15% profit from total revenues of the Rumaila oil field.

    Companies such as Eni SpA (E), Italy’s largest oil company in terms of reserves, along with Occidental Petroleum Corp. (OXY) and Korea Gas Group (036460.SE), known as Kogas, would be also paid back this year as they have already met the 10% increase from the giant Zubair oil field, which has estimated proven reserves of 6.5 billion barrels.


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