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Jubilant Energy to Invest $80 million in Myanmar Oil, Gas Block

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Jubilant Energy plans to invest about to $80 million on an onshore oil and gas block in Myanmar, media reports said Tuesday.

Myanmar recently awarded 10 onshore oil and gas blocks.

“We had bid for two blocks. They have offered us one, but we are keen for both. We are still negotiating,” Chief Financial Officer Vipul Agarwal told Reuters.

The production sharing contract for the block will likely be signed in two to three weeks, he said.

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The Coalition Against Chinese Hegemony

To resist Beijing’s maritime claims, Asean members will have to compromise and form a common front.

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By PHILIP BOWRING

Manila

Ownership of the islands, seabed resources and navigation rights in the South China Sea is now very much on the international agenda. The Association of Southeast Asian Nations is more united on this issue than it has been for about a decade, and the U.S. is turning more attention diplomatically and militarily to the Pacific. Nevertheless, sustaining the coalition of interests disputing China’s claimed hegemony over the sea will not be easy.

In fact, the wonder is that the Chinese leadership managed to get itself into this predicament by so clumsily arousing neighboring countries’ fears. Having suffered constant Chinese provocations over the preceding few years, Hanoi used its chairmanship of the Association of Southeast Asian Nations in 2010 to first bring the issue of Chinese aggression to the table. Vietnam and the Philippines encouraged the U.S. to make clear its own interest in freedom of navigation and settlement of territorial disputes according to international principles.

At that point Beijing could have backed off and allowed the subject to fade from view. Instead, the People’s Liberation Army tried to punish Vietnam and the Philippines by harassing their exploration ships. Under the confident new administration of President Benigno Aquino, Manila responded with unprecedented vigor, carrying on exploration and offering new blocks for drilling.

Even this has not given China’s nationalists second thoughts. Recently the Global Times newspaper, owned by the People’s Daily, warned those who dispute Chinese claims to be “mentally prepared for the sound of cannons,” a threat that was noted around the world.

There is a sense that China’s provocations have been driven by the military, probably against the advice of its diplomats. If wiser heads among Beijing’s civilian leadership can reassert control, they will re-adopt Deng Xiaoping‘s maxim about keeping a low profile. If so, China will tone down its rhetoric and offer economic benefits on a larger scale to increase its neighbors’ dependence. It will likely quietly offer bilateral exploration deals which would divide the Asean claimants who are just starting to work together.

China has tried this before and nearly succeeded with Manila. Although the Philippines has relatively little reliance on China trade, its need for investment and pervasive corruption are vulnerabilities. The preoccupation of its armed forces—who are anyway poorly equipped—with insurgencies at home limits its ability to police the seas and protect exploration.

However, democracy can be a powerful force when it comes to protecting national interests. The Philippine public’s determination to stand up to bullying can be stronger than that of elites with business deals with China or autocracies reliant on good relations.

Vietnam’s nationalistic instincts are sure enough but Vietnam is still a relatively small and weak nation quite dependent on trade with China and likely to become more so. Good ties with India, Japan and Russia and emerging ones with the U.S. are an offset but China’s threats have already deterred some exploration on the continental shelf.

China’s efforts to divide the littoral states by pressing for bilateral negotiations have so far not met with success. But they could do so if Vietnam, the Philippines, Malaysia and Brunei do not resolve their own differences. Significantly, China has refrained from overt threats against Malaysia even though oil and gas wells off Borneo are within its claimed territory. Malaysia in return has urged caution and cooperation with China. If Vietnam and the wider Malay world do not hang together they will surely be hung separately.

The difficulty lies in sacrificing some overlapping claims to form a united front. Vietnam claims all the Spratlys, the Philippines most but not all of them, Malaysia just a few, and Brunei only a couple of banks. Many of the islets, rocks and reefs lie outside their 200-mile exclusive economic zones and none qualifies for its own EEZ as none is capable of independently supporting permanent habitation.

Vietnam’s claim is as successor to its French colonial rulers as well as Vietnamese imperial assertions and the legacy of the Cham trading kingdom which flourished in central Vietnam until about 1500. The U.S. never claimed the Spratlys but an independent Philippines did so on the basis of proximity and as part of the Philippine archipelago. Malaysia and Brunei make claims based on rights to the continental shelf off Borneo.

Compromise among these four countries, who together own two-thirds of the coastline, is essential to prevent China from establishing hegemony over Southeast Asia. If the Asean nations cannot agree among themselves they could ask the International Court of Justice for a ruling, as did Malaysia, Singapore and Indonesia in previous island disputes. The court could also be asked to adjudicate the EEZ boundaries. China would object, but that would only underline its unwillingness to agree to arbitration based on the U.N. Law of the Sea Convention.

In the end, only leadership from Indonesia, the largest Malay state and the cornerstone of Asean, can resolve this conflict. It can do more to refute China’s history-based claims, which ignore centuries of Malay trading across the sea a thousand years before the Chinese. And Jakarta can be the honest broker in finding a compromise to share resources that lie outside the EEZs of the claimants.

Vietnam, the Philippines and the other smaller states are never going to be able to remove China from the Spratly Islands that it now occupies, let alone the Paracels that it seized from Vietnam in 1974. But if they can maintain a common front with backing from Indonesia, they should be able to defend their interests in the South China Sea and their future sovereignty.

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Burma Today

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Darlene Casella
November 22, 2011

Evolved from the colonial poems of Kipling to the specter of nuclear weapons, world leaders are taking a renewed look at provocative Burma.

Rudyard Kipling wrote The Road to Mandalay; a poem about the sometime capital of the British Colony, Burma.

“Come you back to Mandalay, Where the old Flotilla lay:
Can’t you ‘ear their paddles chunkin’ from Rangoon to Mandalay on the road to Mandalay,
Where the flyin’ fishes play,
An’ the dawn comes up like thunder outer China ‘crost the Bay!”

Kipling’s poem became a song for Paramount’s first “Road “picture, with Bing Crosby and Bob Hope. The Road to Mandalay was renamed The Road to Singapore. Frank Sinatra made the song a hit in his Come Fly With Me album.

Songs and laughter are not the reality of Burma today. Myanmar was renamed after the brutal uprising in 1998. Yangon, formerly Rangoon, means “End of Strife.” This name is an antonym to Burmese life. Pervasive government control, electricity and food shortages, corruption and rural poverty abound. State assets have been “privatized” to military families and government cronies. In spite of abundant natural resources, Burma remains one of the world’s poorest countries.

Human trafficking of women and children for commercial sexual exploitation; conscription of child soldiers, and forced labor camps are found. Extreme human rights violations cause the United States, the European Union, and Canada to impose financial and economic sanctions.

Myanmar sits at the crossroads of Asia’s great civilizations between India, Bangladesh, Laos, China, and Thailand. Strategically located on the vast Indian Ocean; she stretches to the Eastern Himalayan Mountains, but is smaller than Texas.

Ancient cities, spectacular monuments, well preserved pagodas, stupas, and temples make Myanmar a rich archaeological find. People communicate in their own languages, wear their own style of clothing, celebrate festivals, and perform rituals that have existed since time immemorial. Buddhism is influential. Most boys, and many girls, take part in novitiation which is a temporary monastic life; which includes a shaved head, wearing a robe, and staying in a monastery (a nunnery for girls). Monks in yellowish robes hold alms bowls, heads bowed, humbly asking for whatever food is offered.

The George Soros Foundation created The Burma Project in 1994 to increase international awareness of conditions in Burma and help the country to make transition from a closed to an open society.

Aung San Suu Kyi is a Burmese national hero, a Noble Laureate, and head of the pro democracy movement. She was under house arrest for most of the last 20 years; during this time her husband died in England. At the age of 65, she was released in November 2010 and saw her son for the first time in ten years. Bono wrote the song “Walk On” for Kyi. She has millions of supporters worldwide.

Former First Lady Laura Bush, an advocate of Suu Kyi, worked with 16 women senators to draft a letter to the UN to secure Kyi’s release. Mrs. Bush wrote an op-ed piece in the Wall Street Journal, was interviewed in Time Magazine, and personally called General Secretary Ban Ki Moon asking him to pressure the Burmese regime to release Suu Kyi. In 2010 Laura Bush made a U Tube video about Suu Kyi. Happily Laura Bush spoke by phone with the recently freed pro democracy activist. Encouraged by recent developments, Aung San Suu Kyi announced a return to politics. She had meetings with President Thein Sein.

Burma remains a close ally of China. China and Myanmar have multibillion dollar joint venture pipelines to transport oil and gas. It will link refineries in Western China across Myanmar. Offshore natural gas will go to China. Under civilian control since March 2011, Myanmar has embarked on a series of reforms; released 220 political prisoners, relaxed media control, and legalized trade unions. Association for Southeast Asian Nations (ASEAN) has named Burma as the Chair starting in 2014. UN Secretary General Ban Ki Moon has accepted an invitation to visit the country as soon as possible.

Troubling aspects of Sein’s new government include their nuclear ambition, and their military relationship with North Korea. Norway based “Voice of Burma” broadcast this in a one hour documentary film on Aljazeera television in the Middle East. A young Burmese military specialist on rocket engines shows that Burma has components for a nuclear weapons program, including technology for uranium enrichment and long range missiles.

President Barack Obama and Secretary of State Hillary Clinton are climbing on the Burma bandwagon. Mr. Obama called Aung San Suu Kyi during his visit to Australia last week. Hillary Clinton is scheduled to visit next month.

Let us pray that the Obama Administration does better with nuclear weapons in Burma than it has done with nuclear weapons in North Korea and Iran.

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