Daily Archives: December 16, 2011
Buccaneer Energy Limited today said that it has executed a gas sales contract with ConocoPhillips, to supply natural gas to ConocoPhillips’ LNG facility located on the Kenai Peninsula approximately 10 miles north-west of Buccaneer’s 100% owned Kenai Loop project.
The contract with ConocoPhillips commences when Kenai Loop # 1 starts production in December 2011. The contract is expected to conclude on 30 April 2012, with the potential to end earlier, if construction of the Cook Inlet Natural Gas Storage (CINGSA) facility is completed prior to this date.
Once the CINGSA facility is on line, Buccaneer has a gas sales contract in place with ENSTAR – the largest gas utility in Alaska. ENSTAR will purchase the Kenai Loop gas and inject into CINGSA for storage and use at a later date.
Buccaneer said in a statement that is not obligated to sell any gas under the ConocoPhillips contract, however it gives the Company both flexibility and surety as it will allow the Kenai Loop # 1 well to flow continuously from the commencement of production, while being able to sell gas either into the ConocoPhillips gas contract or the daily auction to supply local peak demand requirements during the Northern Hemisphere winter. The daily auction to supply gas does not provide guaranteed daily volumes.
Buccaneer has the ability to sell up to 2.5 BCF to ConocoPhillips under the contract. The pricing as part of the gas sales contract is consistent with recently executed gas contracts.
Buccaneer Director Dean Gallegos said:
“This gas sales contract with ConocoPhillips is another milestone for Buccaneer. With secured contracts for the gas produced at Kenai Loop #1 from the time of first production, and the flexibility to be able to sell into the peak demand daily auction market, places Buccaneer in a strong position with substantial cash flows from December 2011 rather than April 2012.
Further, the ability to flow the well continuously will give us the opportunity of assessing the reservoir performance prior to the commencement of the ENSTAR gas contract in April 2012. If the reservoir performs as testing has indicated, it will give us the ability to increase the production rate from the anticipated minimum of 5.0 MMCFD.”
- Conoco Offers Highest Bid In Mexico Lease Sale (mb50.wordpress.com)
- How Oil Companies Plan to Spend Their Cash in 2012 (dailyfinance.com)
- USA: ConocoPhillips Allocates USD 14 Billion for E&P in 2012 (mb50.wordpress.com)
- ConocoPhillips Sells $2B in Pipeline Assets (mb50.wordpress.com)
- USA: Cheniere Enters into Contract with Bechtel (mb50.wordpress.com)
One day after Iran claimed to have brought down an advanced U.S. RQ-170 Sentinel drone, Public Intelligence received an Air Force report saying the drone suffers from many electronic vulnerabilities (via Jeffrey Carr at Digital Dao).
The report, Operating Next-Generation Remotely Piloted Aircraft for Irregular Warfare was published “For Official Use Only” (FOUO) in April 2011 by the U.S. Air Force Scientific Advisory Board, and addresses electronic threats to the American drone fleet.
The board found a list of problems, including communications vulnerabilities and lost communication events.
From Digital Dao:
Section 2.4.3 “Threat to Communication Links” expands on the state of vulnerabilities for [drones]:
- Jamming of commercial satellite communications (SATCOM) links is a widely available technology. It can provide an effective tool for adversaries against data links or as a way for command and control (C2) denial.
- Operational needs may require the use of unencrypted data links to provide broadcast services to ground troops without security clearances. Eavesdropping on these links is a known exploit that is available to adversaries for extremely low cost.
- Spoofing or hijacking links can lead to damaging missions, or even to platform loss.
Section 2.4.4 “Threat to Position, Navigation, and Guidance”:
- Small, simple GPS noise jammers can be easily constructed and employed by an unsophisticated adversary and would be effective over a limited RPA operating area.
- GPS repeaters are also available for corrupting navigation capabilities of RPAs.
- Cyber threats represent a major challenge for future RPA operations. Cyber attacks can affect both on-board and ground systems, and exploits may range from asymmetric CNO attacks to highly sophisticated electronic systems and software attacks.
This information is particularly interesting given the exclusive interview of an Iranian engineer by Scott Peterson and Payam Faramarzi at the Christian Science Monitor.
The CSM story says an Iranian electronic warfare specialist, and his team, overrode the drones communications systems based on information gleaned from the previously downed U.S. drones in Iran.
Once in control of the Sentinel, Iran reprogrammed the craft’s GPS coordinates to make the drone think it was landing at its home base, when actually it was setting down deep in Iran.
“The GPS navigation is the weakest point,” the Iranian engineer told the Monitor, giving the most detailed description yet published of Iran’s “electronic ambush” of the highly classified US drone. “By putting noise [jamming] on the communications, you force the bird into autopilot. This is where the bird loses its brain.”
The “spoofing” technique that the Iranians used – which took into account precise landing altitudes, as well as latitudinal and longitudinal data – made the drone “land on its own where we wanted it to, without having to crack the remote-control signals and communications” from the US control center, says the engineer.
Defense Secretary Leon Panetta refused, however, to say whether the drone could have been brought down by an electronic attack.
- Exclusive: Iran hijacked US drone, says Iranian engineer – The Christian Science Monitor (csmonitor.com)
- Iran Claims They Hacked US Drone GPS System (inquisitr.com)
- Iran alleges GPS spoofing tricked CIA’s lost stealth drone – Electronista (electronista.com)
- U.S. drone hijacked by GPS hack? (news.cnet.com)
- Iran Hacked, Hijacked U.s. Drone…report (colonel6.com)
- How Iran hacked super-secret CIA stealth drone (rt.com)