Sense Of Unease Growing Around The World As U.S. Government Looks Befuddled

10/05/13

By STEVEN R. HURST

– An unmistakable sense of unease has been growing in capitals around the world as the U.S. government from afar looks increasingly befuddled — shirking from a military confrontation in Syria, stymied at home by a gridlocked Congress and in danger of defaulting on sovereign debt, which could plunge the world’s financial system into chaos.

While each of the factors may be unrelated to the direct exercise of U.S. foreign policy, taken together they give some allies the sense that Washington is not as firm as it used to be in its resolve and its financial capacity, providing an opening for China or Russia to fill the void, an Asian foreign minister told a group of journalists in New York this week.

Concerns will only deepen now that President Barack Obama canceled travel this weekend to the Asia Pacific Economic Cooperation Forum in Bali and the East Asia Summit in Brunei. He pulled out of the gatherings to stay home to deal with the government shutdown and looming fears that Congress will block an increase in U.S. borrowing power, a move that could lead to a U.S. default.

The U.S. is still a pillar of defense for places in Asia like Taiwan and South Korea, providing a vital security umbrella against China. It also still has strong allies in the Middle East, including Israel and the Gulf Arab states arrayed against al-Qaida and Iran.

But in interviews with academics, government leaders and diplomats, faith that the U.S. will always be there is fraying more than a little.

“The paralysis of the American government, where a rump in Congress is holding the whole place to ransom, doesn’t really jibe with the notion of the United States as a global leader,” said Michael McKinley, an expert on global relations at the Australian National University.

The political turbulence in Washington and potential economic bombshells still to come over the U.S. government shutdown and a possible debt default this month have sent shivers through Europe. The head of the European Central Bank, Mario Draghi, worried about the continent’s rebound from the 2008 economic downturn.

“We view this recovery as weak, as fragile, as uneven,” Draghi said at a news conference.

Germany’s influential newspaper Sueddeutsche Zeitung bemoaned the U.S. political chaos.

“At the moment, Washington is fighting over the budget and nobody knows if the country will still be solvent in three weeks. What is clear, though, is that America is already politically bankrupt,” it said.

Obama finds himself at the nexus of a government in chaos at home and a wave of foreign policy challenges.

He has been battered by the upheaval in the Middle East from the Arab Spring revolts after managing to extricate the U.S. from its long, brutal and largely failed attempt to establish democracy in Iraq. He is also drawing down U.S. forces from a more than decade-long war in Afghanistan with no real victory in sight. He leads a country whose people have no interest in taking any more military action abroad.

As Europe worries about economics, Asian allies watch in some confusion about what the U.S. is up to with its promise to rebalance military forces and diplomacy in the face of an increasingly robust China.

Global concerns about U.S. policy came to a head with Obama’s handling of the civil war in Syria and the alleged use of chemical weapons by the regime of President Bashar Assad. But, in fact, the worries go far deeper.

“I think there are a lot of broader concerns about the United States. They aren’t triggered simply by Syria. The reaction the United States had from the start to events in Egypt created a great deal of concern among the Gulf and the Arab states,” said Anthony Cordesman, a military affairs specialist at the Center for International Studies.

Kings and princes throughout the Persian Gulf were deeply unsettled when Washington turned its back on Egypt’s long-time dictator and U.S. ally Hosni Mubarak during the 2011 uprising in the largest Arab country.

Now, Arab allies in the Gulf voice dismay over the rapid policy redirection from Obama over Syria, where rebel factions have critical money and weapons channels from Saudi Arabia, Qatar and other Gulf states. It has stirred a rare public dispute with Washington, whose differences with Gulf allies are often worked out behind closed doors. Last month, Saudi Foreign Minister Saud al-Faisal warned that the renewed emphasis on diplomacy with Assad would allow the Syrian president to “impose more killing.”

After saying Assad must be removed from power and then threatening military strikes over the regime’s alleged chemical weapons attack, the U.S. is now working with Russia and the U.N. to collect and destroy Damascus’ chemical weapons stockpile. That assures Assad will remain in power for now and perhaps the long term.

Danny Yatom, a former director of Israel’s Mossad intelligence service, said the U.S. handling of the Syrian crisis and its decision not to attack after declaring red lines on chemical weapons has hurt Washington’s credibility.

“I think in the eyes of the Syrians and the Iranians, and the rivals of the United States, it was a signal of weakness, and credibility was deteriorated,” he said.

The Syrian rebels, who were promised U.S. arms, say they feel deserted by the Americans, adding that they have lost faith and respect for Obama.

The White House contends that its threat of a military strike against Assad was what caused the regime to change course and agree to plan reached by Moscow and Washington to hand its chemical weapons over to international inspectors for destruction. That’s a far better outcome than resorting to military action, Obama administration officials insist.

Gulf rulers also have grown suddenly uneasy over the U.S. outreach to their regional rival Iran.

Bahrain Foreign Minister Sheik Khalid bin Ahmed Al Khalifa said Gulf states “must be in the picture” on any attempts by the U.S. and Iran to open sustained dialogue or reach settlement over Tehran’s nuclear program. He was quoted Tuesday by the London-based Al Hayat newspaper as saying Secretary of State John Kerry has promised to consult with his Gulf “friends” on any significant policy shifts over Iran — a message that suggested Gulf states are worried about being left on the sidelines in potentially history-shaping developments in their region.

In response to the new U.S. opening to Iran to deal with its suspected nuclear weapons program, Israeli Prime Minister Benjamin Netanyahu told the U.N. General Assembly that his country remained ready to act alone to prevent Tehran from building a bomb. He indicated a willingness to allow some time for further diplomacy but not much. And he excoriated new Iranian President Hassan Rouhani as a “wolf in sheep’s clothing.”

Kerry defended the engagement effort, saying the U.S. would not be played for “suckers” by Iran. Tehran insists its nuclear program is for peaceful energy production, while the U.S. and other countries suspect it is aimed at achieving atomic weapons capability.

McKinley, the Australian expert, said Syria and the U.S. budget crisis have shaken Australians’ faith in their alliance with Washington.

“It means that those who rely on the alliance as the cornerstone of all Australian foreign policy and particularly security policy are less certain — it’s created an element of uncertainty in their calculations,” he said.

Running against the tide of concern, leaders in the Philippines are banking on its most important ally to protect it from China’s assertive claims in the South China Sea. Defense Secretary Voltaire Gazmin said Manila still views the U.S. as a dependable ally despite the many challenges it is facing.

“We should understand that all nations face some kind of problems, but in terms of our relationship with the United States, she continues to be there when we need her,” Gazmin said.

“There’s no change in our feelings,” he said. “Our strategic relationship with the U.S. continues to be healthy. They remain a reliable ally.”

But as Cordesman said, “The rhetoric of diplomacy is just wonderful but it almost never describes the reality.”

That reality worldwide, he said, “is a real concern about where is the U.S. going. There is a question of trust. And I think there is an increasing feeling that the United States is pulling back, and its internal politics are more isolationist so that they can’t necessarily trust what U.S. officials say, even if the officials mean it.”

___

EDITOR’S NOTE — Steven R. Hurst, The Associated Press’ international political writer in Washington, has covered foreign affairs for 35 years, including extended assignments in Russia and the Middle East.

___

AP writers Brian Murphy in Dubai, United Arab Emirates, Robert H. Reid in Berlin, Hrvoje Hranjski in Manila, Gregory Katz in London, Josef Federman in Jerusalem, Rod McGuirk in Canberra, Australia, and Sarah DiLorenzo and David McHugh in Paris contributed to this report.

Source

U.S. Tells Iran: We Won’t Join Israeli Attack

By Gil Ronen

Senior officials in the Obama Administration sent a message to Tehran in the past few days, according to which the U.S. does not intend to join Israel‘s side if it decides to attack the Iranian nuclear installations on its own, reports Israel’s second-largest paper, Yediot Aharonot.

According to the report, the U.S. sent the message to Iran in order to avoid an Iranian response military response that would target U.S. installations in the Gulf region.

The message was reportedly conveyed to Iran through two European countries that serve as a conduit of communication between Iran and the U.S. in times of crisis.

Nationalist newspaper Makor Rishon has accused Yediot Aharonot of working with the Obama Administration against the Netanyahu government’s planned strike on Iran.

According to the New York Times, senior U.S. officials have argued that Israel is “trying to corner” Obama into a military commitment that he does not yet need to make.

Source

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Recap: Worldwide Field Development News Jul 27 – Aug 2, 2012

This week the SubseaIQ team added 7 new projects and updated 29 projects. You can see all the updates made over any time period via the Project Update History search. The latest offshore field develoment news and activities are listed below for your convenience.

N. America – US GOM

McDermott to Deliver New Junction Facilities for GOM

Aug 2, 2012 – McDermott has received a contract by the Discovery system for offshore facilities in the Gulf of Mexico. The project is to deliver new junction facilities for Discovery’s Keathley Canyon connector pipeline system with a 3,300-ton, four-leg platform in 350 feet (107 meters) of water. The unmanned platform will provide pipeline junction facilities for incoming deepwater pipelines from the Hadrian South and Lucius fields and four outgoing shallow-water pipelines to shore. Fabrication is expected to commence this summer in Louisiana with offshore installation commencing in 3Q2013.

Project Details: Lucius

Apache Continues to Drill Parmer Appraisal Well

Aug 1, 2012 – Stone Energy reported that the Parmer appraisal well, which was spud during the second quarter of 2012, is expected to reach total depth in the third quarter of 2012.

Project Details: Parmer

Eni Gearing Up to Spud Phinisi in 2013

Aug 1, 2012 – Eni plans to commence drilling on the deepwater Phinisi well in the first quarter of 2013 using the Deepwater Pathfinder (UDW drillship). The water depth of the site is 6,837 feet (2,084 meters) and is targeting oil and gas.

Project Details: Phinis

MidEast – Persian Gulf

CNPC Pulls Out of Iran’s South Pars Project

Jul 30, 2012 – China National Petroleum has pulled out of developing Phase 11 of Iran’s offshore South Pars gas field, reported Dow Jones newswires. The firm, which had delayed the project for more than 1,130 days, has already withdrawn all of its workers from the southern Iranian port city of Assaluyeh, the onshore part of South Pars gas field in the Persian Gulf, Mehr said, citing information from the oil ministry.

Project Details: South Pars

Asia – SouthEast

ExxonMobil Finds More Pay Offshore Vietnam

Jul 30, 2012 – ExxonMobil has encountered additional hydrocarbons in its third well offshore Da Nang, Vietnam. The well 118-CVX-3X, on the Ca Voi Xanh field, was drilled by the Seadrill West Aquarius (UDW semisub). The well has been plugged, and the rig has left the site.

Lundin Drills Duster in Tiga Papan Well

Jul 27, 2012 – Lundin Petroleum has completed the Tiga Papan-5 well in Blocks SB307 and SB308 offshore Sabah, Malaysia. The Tiga Papan-5 well targeted an un-appraised fault block of mid-Miocene aged sands at the Tiga Papan unit, which was successfully tested in 1982 by the Tiga Papan 1 well. The well penetrated the target reservoir interval but proved to be water-bearing. The well will be plugged and abandoned as a dry hole. Offshore Courageous (350′ ILC) jackup will now move to drill the Barangan prospect located in Block SB303.

Project Details: Tiga Papan

Europe – North Sea

ProServ to Provide Subsea Services for Flyndre/Cawdor Development

Aug 2, 2012 – Proserv has received a contract from Maersk Oil UK to provide electro-hydraulic multiplex subsea control systems along with its associated topside and subsea interface systems for the development of the Flyndre and Cawdor project. Maersk Oil is developing a 16-mile-long (25-kilometer-long) subsea tie-back to the Clyde platform, which the fields will connect to. The development is scheduled to commence production in 2013.

Project Details: Flyndre and Cawdor

Second Well at Bacchus Comes Online, Increases Production

Aug 2, 2012 – Apache has completed a horizontal well on the Bacchus field which has increased production to 12,900 bopd. The well, Bacchus West, penetrated Jurassic-aged Fulmar reservoir sandstones and logged 889 feet (271 meters) of net pay in three sections. The well currently is producing about 8,500 barrels of oil per day. The first well on the field, Bacchus South, commenced production in May 2012 and reached levels of about 6,000 bopd. Currently the well is producing nearly 4,400 barrels per day. Bacchus is subsea tied-back to the Forties Alpha platform. The Rowan Gorilla VII (450′ ILC) jackup will relocate to the Aviat shallow gas discovery for appraisal drilling.

Project Details: Forties

Dana Successfully Appraises Platypus

Aug 2, 2012 – Dana Petroleum reported that the Platypus gas appraisal well in the Southern North Sea has recorded a test flow rate of 27 MMcf/d on a 96/64-inch choke. The ENSCO 80 (225′ ILC) jackup drilled the well to a total measured depth of 14,175 feet (4,321 meters). A drill stem test was completed and the well is being suspended for use as a future production well. Platypus is located in Block 48/1a in the UK southern North Sea. It was discovered in 2010 when well 48/1a-5 encountered the gas bearing Lower Leman Sandstone reservoir.

Project Details: Platypus

PetroMarker to Perform EM Survey on Grouse Prospect

Aug 1, 2012 – Faroe Petroleum has selected PetroMarker a contract for an EM survey on their Grouse prospect. Grouse is located in UK License P1853, which lies north of the Shetlands, in an area close to existing infrastructure. The EM survey will be executed with the newly mobilized Normand Baltic at the end of June.

Project Details: Grouse

Wintershall Comes Up Dry at Kakelborg Prospect

Aug 1, 2012 – Wintershall, operator of Production License 370, has completed the drilling of wildcat well 33/6-4 on the Kakelborg prospect in the Norwegian North Sea. The well, which is dry, did not encounter reservoir rocks in the Lista formation. The objective of the well was to prove petroleum in reservoir rocks from the Paleocene Age. The well was drilled to a vertical depth of 5,950 feet (1,814 meters) below the sea surface, and terminated in the Jorsalfare formation in the Shetland group in the Upper Cretaceous. Well 33/6-4 was drilled by the Borgland Dolphin (DW semisub) drilling facility.

Project Details: Kakelborg

Ithaca Grabs Greater Stella Area Contract

Jul 30, 2012 – Ithaca Energy is moving forward with development on the Stella and Harrier fields by awarding Technip a contract to carry out all subsea engineering work in the Greater Stella Area. The EPIC (engineering, procurement, installation and construction) contract includes the detailed design and pipelay of a 20-mile (32-kilometer), 10-inch oil export pipeline and a 38-mile (61-kilometer), 10-inch gas export pipeline to the fields’ production platform, along with various other subsea work. The contract is scheduled to be completed in the second half of 2013. The Greater Stella Area development is located on the UK Continental Shelf around 175 miles (282 kilometers) east-southeast of Aberdeen, Scotland, in a depth of approximately 300 feet (91 meters).

Project Details: Stella/Harrier

Statoil Spins Bit at Geitungen

Jul 27, 2012 – Statoil has commenced exploratory drilling on well 16/2-12 targeting the Geitungen structure. The main objective of well 16/2-12 is to prove the presence of oil-bearing Jurassic sandstones similar to the Johan Sverdrup discovery. The planned total depth of the well is 6,759 feet (2,060 meters) and will be drilled by the Ocean Vanguard (mid-water semisub). Drilling should take about 40 days.

Project Details: Geitungen

Africa – Other

Papa Goes the Distance for Ophir

Aug 2, 2012 – BG Group has made a Cretaceous gas discovery at the Papa-1 well in Block 3 offshore Tanzania. The well encountered a 292-foot (89-meter) gas bearing column in the Upper Cretaceous; and based on the preliminary data available, the operator estimates that it holds 0.5-2.0 Tcf in place. A detailed core and petrophysical analysis will confirm the scale of the discovered resource. The well was spud on May 29, 2012 in 7,172 feet (2,186 meters) of water and was drilled by the drillship Deepsea Metro I (UDW drillship) to a total depth of 18,189 feet (5,544 meters) subsea in 57 days.

Project Details: Papa

Eni Finds Additional Gas in Area 4 Offshore Mozambique

Aug 1, 2012 – Eni announced that a discovery has been made in the eastern part of Area 4, offshore Mozambique, at the Mamba North East 2 exploration prospect. The new discovery adds at least 10 Tcf of gas in place to Area 4, confirming at least 62 Tcf of gas in-place already discovered, bringing the resources, exclusively located in Area 4, to at least 20 Tcf plus of gas in place, stated the operator. Mamba North East 2, where Eni will conduct a production test, was drilled in 6,542 feet (1,994 meters) of water and reached total depth of 17,602 feet (5,365 meters). The well is located approximately 6 miles (9 kilometers) east of Mamba North East 1 and approximately 14 miles (23 kilometers) from Mamba South 1, 37 miles (60 kilometers) off the Capo Delgado coast. The well encountered 656 feet (200 meters) of gas pay in stacked multiple high-quality Oligocene, Eocene and Paleocene sands. The discovery has proved the existence of hydraulic communication with the Oligocene reservoir in Mamba North East 1 and with those of the Eocene age in Mamba North East 1 and Mamba South 1, through a unique gas column of 1,509 feet (460 meters). Lastly, Mamba North East 2 has identified a new exploration play in the Paleocene located exclusively in Area 4.

Project Details: Mamba South/North

Africa – West

Tap Oil Gazes at Starfish in Ghana

Aug 1, 2012 – Tap Oil announced plans to commence drilling on the Starfish prospect in 1Q13. Starfish is considered a well-defined, large ‘Jubilee style’ Upper Cretaceous fan play at comparable burial depths to the producing Jubilee reservoir. It has recoverable oil potential of 500 million to 1.2 billion barrels at the P50 to P10 range.

Project Details: Starfish

Chevron Tags $2B for Development of Offshore Lianzi Project

Jul 30, 2012 – Chevron announced that its subsidiary will proceed with the development of the Lianzi field located in a unitized offshore zone between the Republic of Congo and the Republic of Angola. Located 65 miles (105 kilometers) offshore in approximately 3,000 feet (900 meters) of water, the Lianzi field will be developed via a subsea tie-back to the existing Benguela Belize Lobito Tomboco (BBLT) platform located in Angola Block 14. The $2 billion development will include a subsea production system and a 27-mile (43-kilometer) electrically heated flowline to transport the oil from the field to the BBLT platform. First oil is expected in 2015. Once completed, the project is expected to produce a maximum of 46,000 barrels of oil equivalent per day. Chevron Overseas Congo Limited is operator of the Lianzi field and has a 31.25% interest, along with Total (36.75%), ENI (10%), Sonangol (10%), SNPC (the Republic of Congo National Oil Company 7.5%), and GALP (4.5%).

Project Details: BBLT

Chariot Spuds Nimrod Prospect

Jul 30, 2012 – Chariot Oil & Gas has commenced exploratory drilling on the Nimrod prospect offshore Namibia. The company said that the well is the second in its four-to-five well drilling program in the region. The well is being drilled by the Ocean Rig Poseidon (UDW drillship). The firm has previously reported that Nimrod is estimated to contain around 4.9 billion barrels of potential gross mean prospective resources. The drilling location is around 50 miles (80 kilometers) offshore Namibia in 1,180 feet (360 meters) of water and has an estimated total drilling depth of approximately 11,000 feet (3,353 meters). Drilling and logging operations are expected to take approximately 60 days.

Project Details: Nimrod

S. America – Other & Carib.

Borders & Southern Plugged, Abandoned Stebbing Well

Aug 1, 2012 – Borders & Southern announced that well 61/25-1 (Stebbing) has been successfully plugged and abandoned, bringing an end to the Company’s current two well drilling program. The Leiv Eiriksson (UDW semisub) drilling rig will now be assigned to Falkland Oil and Gas for its two well program at Loligo, after which it will be demobilized.

Project Details: Loligo

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