. Earth Science News .
In Iraq's oil battle, Kirkuk is key

China's top oil producer to pump 29.3 bln dlrs into Xinjiang
China National Petroleum Corp (CNPC) plans to pump 200 billion yuan (29.3 billion dollars) into the northwest Xinjiang region in the next five years, state media said Friday. The nation's top oil firm plans to build oil and gas pipelines, refineries, petrochemical plants and oil reserves, the China Daily reported, citing CNPC vice president Zhou Jiping. No one at CNPC was available to comment on the report. Resource rich Xinjiang is vital to China's economic expansion. The region in China's remote northwest has 30 percent of the country's onshore oil reserves and 34 percent of natural gas reserves, the paper said. Beijing has been increasing investment in Xinjiang since 2000 as part of its efforts to rebalance the country's economic growth. And analysts have said around 70 percent of any extra investment is gobbled up by the oil and petrochemical industries.

Australia approves Baosteel stake in Aquila
China's largest steelmaker Baosteel Friday won approval to take a 285.6 million dollar (261.5 million US) stake in Aquila Resources, the Australian mining company said. Aquila said Australia's Foreign Investment Review Board (FIRB) had approved Baosteel to take up to 19.99 percent of shares in the company, up from the 15 percent initially agreed under the deal. "Subject to receipt of relevant Chinese regulatory approvals which have been sought by Baosteel, the company anticipates completion of the transaction in the latter half of November," Aquila said in a statement.

The deal comes after Australia last week approved Yanzhou Coal's 3.5 billion dollar takeover of miner Felix, its biggest by a Chinese firm, as the Asian superpower seeks to secure raw material supplies to support its growth. Australia's vast mineral resources - particularly iron ore and coal - are keenly sought by Chinese companies and accounted for much of the 74 billion Australian dollars in trade between the countries last year. But the government has wrestled with the national security implications of foreign ownership of the resources industry, and has a preference for foreign state-owned companies to take minority stakes in domestic miners.

Under the latest deal, Baosteel will be given preference to directly invest in most of Aquila's projects and will provide support in sourcing financing from Chinese institutions. The deal, under which Baosteel vice-president Dai Zhihao has been nominated to join Aquila's board, was approved by the Australian miner's shareholders on Wednesday. "Aquila looks forward to working closely with Baosteel and to fast-tracking the company's significant coal, iron ore and manganese projects," it said.

Protectionism threatens global recovery: Chinese official
A top Chinese central bank official warned Sunday that rising trade and investment protectionism remains one of the major threats to the global economic recovery. "We have noticed that major risks threatening (the) global economic recovery still remain," Li Dongrong, an assistant governor of the People's Bank of China, said in a speech at Kuwait Financial Forum. These included "rising trade and investment protectionism, prolonged dysfunction of the financial system and inadequate coordination in macro-economic policies," he said. Dongrong stressed the most pressing task of the international community was to "strengthen global cooperation, prevent protectionism of all kinds and support stabilisation of financial markets and economic growth." (AFP Report)

by Staff Writers
Baghdad (UPI) Oct 30, 2009
The president of Iraq's semiautonomous Kurdish region has demanded the disputed, ethnically divided city of Kirkuk, which dominates the northern oilfields, be put under his control.

The Baghdad government, struggling to make ends meet, is unlikely to relinquish such a vital economic prize.

So the demand by Massoud Barzani, who fought a guerrilla war against Saddam Hussein for decades, has raised the specter of a conflict between the independence-minded Kurdish minority and the federal government that could splinter Iraq.

"We will not accept any other solution," Barzani declared Wednesday in the Kurdish city of Irbil. "We want it to be annexed to our region because the majority of its population are Kurds."

The issue of who controls Kirkuk, capital of a province with the same name, has already sabotaged efforts to push an important electoral law through a fractured Parliament, and that could derail a general election scheduled for Jan. 16.

The Kirkuk fields produce one-third of Iraq's oil. If the Kurds get their hands on those reserves, it would almost certainly push some factions in the Shiite majority to take control of the southern fields, which produce the rest of Iraq's oil output.

That would effectively cut out the minority Sunnis, who were the pillar of Saddam's brutal regime but have few resources in their areas in central Iraq, bolstering jihadist insurgents and antagonizing the region's Sunni regimes, particularly in Saudi Arabia and Jordan.

The result would likely be the disintegration of Iraq into sectarian statelets, with the Kurds and Shiites in full control of the country's energy riches.

Iran, which borders the Shiite-dominated south, would probably have access to the southern oil reserves, greatly boosting its own reserves.

At the same time, Turkey and Iran don't want to see an independent Kurdish state emerge in northeastern Iraq. They have enough problems with their own restive Kurdish minorities, and an independent homeland in Iraq would only fuel those groups' separatist ambitions.

If Iraq is to be plunged into another spasm of sectarian savagery, it is likely to explode in Kirkuk, where the long-festering rivalries between Kurd and Arab are already colliding.

Jalal Talabani, a Kurdish leader and veteran guerrilla fighter who is currently Iraq's president, calls Kirkuk "the Kurdish Jerusalem," underlining his people's emotional ties to the ancient city.

The Kurds have long claimed Kirkuk as theirs, saying it was part of the Ottoman-era governate in Kurdistan that existed until World War I. The Arabs, along with the sizeable Turkmen minority in Kirkuk, dispute that.

During Saddam's rule, he forcibly moved rebellious Kurds out of the Kirkuk area as part of his Arabization program. Since Saddam's downfall in the U.S.-led invasion of 2003, the Kurds have been moving large numbers of their people back into the city and its environs in a demographic confrontation.

They want a referendum to decide whether Kirkuk should join three other provinces that make up the Kurdistan Regional Government. So they oppose holding parliamentary elections until a proper census has been conducted.

The prospect of a new sectarian conflict, on top of the brutal bombing campaign being conducted these days by al-Qaida as U.S. forces withdraw and simmering Shiite-Sunni violence, will also impede Baghdad's efforts to attract international oil companies to Iraq to restore the country's rundown oil industry.

Iraq has always been particularly vulnerable to eruptions of violence during times of political deadlock. So as the issue of who is to run the Kirkuk oil fields moves to center stage, the prospect of a new bloodletting is looming closer.

Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
Global Trade News



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


Groups petition against Myanmar pipeline
Yangon, Myanmar (UPI) Oct 29, 2009
Human-rights groups urged China to halt its investment in a Myanmar gas project over fears of abuses and unrest. The 609-mile Shwe gas pipeline project runs from Myanmar's Arakan state to China's Yunnan province. State-owned China National Petroleum Corp. holds a 50.9 stake in the project in partnership with the Myanmar Oil and Gas Enterprise. The Shwe pipeline construction was ... read more







The content herein, unless otherwise known to be public domain, are Copyright 1995-2009 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement