Caspian Basin Alert  

Corporations

By Laura Gagas and Sarah Prindiville

 

Introduction:

Some of the main companies involved in exploration and oil extraction of the Caspian Basin are:

   Eni,         British Petroleum, Chevron, Texaco, Caltex, LUKOIL oil company Lukoil, and shell.comRoyal Dutch/Shell.

The rest of this webpage will go through each companies current operations and their locations throughout the globe.  The Caspian Basin and Pipeline have caused many political controversies, which have proven to be a significant part of the Caspian Basin.

Photo: Amoco Cadiz sinking

Picture Source: <http://www.search.shell.com/cgi-bin/RSframeset.cgi?start=http://www.shell.com/html/investor-en/shellreport01/reports2001/rde/htm/ginBusExp.html> <http://www.chevrontexaco.com/news/publications/aug02/gallery_13_spanish.asp> <http://www.ask.com/main/metaAnswer.asp?>

Brief Company Overviews:

Click on Company Logos to Link to their Homepages!

  Eni is lead by Roberto Poli, Chairman, and Vittorio Mincato, CEO.

Agip KCO (a division of ENI-Agip, an Italian oil company) operates the massive Kashagan discovery in Kazakhstan. They have businesses in over 70 countries in Asia, Africa, Europe, Middle East, and the Americas. (see map below)

Picture Source: <http://www.eni.it/english/mondo/mondo/mondo.html>

Eni is also part of the Caspian Pipeline Consortium (CPC) that, in 2001, activated the oil pipeline that makes it possible to transport crude oil from the Tengiz field, close to the Caspan Sea, to the Russian port of Novorossisk on the Black Sea. (see map below)  This involvement will allow Eni to market around 3 million tonnes per year of the oil production from Karachaganak.

 Picture Source: <http://www.chevrontexaco.com/news/publications/photo3.asp>

As any oil company would, Agip-Eni deals with it's share of oil spills. At dawn on March 18, 1967, a huge black oil stain floated over the waters off Cornwall as it spread along the coasts of Southern England and Normandy. The “Torrey Canyon”, the name of the tanker responsible for the spill, became synonymous with environmental disaster. An oil spill in the sea is a very difficult emergency to deal with, only a mere 15% may be recuperated; the remaining 85% is lost, a fraction evaporates, but the majority settles partly on the sea bed and partly on the beaches. Legally, the responsibilities of an oil spill lie both with the Captain and the ship-owner, but financing of the international fund for oil spill cleanups lies mostly on the oil companies.

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         British Petroleum's head officer is Lord Browne of Madingley, FREng, Group Chief Executive.

. Lord Browne, FREng         

British Petroleum controls the Guneshli-Chirag-Azeri trend and Shah Deniz field in the southern Caspian Sea. BP operates around the world in Africa, Australia, Eurasia, Middle East, North America, and South America.

BP's roots stretch back to the late 19th century and the start of systematic oil exploration in the United States and the Middle East.Since then as individual companies we have co-operated in many different parts of the world. Now, as an integrated group designed for the 21st century, we have merged our strengths into a global enterprise for a global economy.

One piece of history in BP's past:

BP and Amoco, the world's second largest oil company has lead the oil industries campaign to break open the Arctic National Wildlife Refuge for oil drilling. They recently pleaded guilty to a felony for dumping hazardous wastes at it's Endicott offshore field at Prudhoe Bay. Over a three period a BP contractor injected the waste back into oil wells and was fined twenty two million dollars. BP is one of the largest producers of global warming on the planet. Once merged with ARCO the megacorporation's production will amount to three percent of the world's fossil fuel emissions, making it the fourth largest carbon producer on the planet. Around the world BP has caused countless oil and hazardous waste spills. In America's arctic alone, BP was responsible for one hundred and four oil spills between January of 1997 and March of 1998. That's an average of one oil spill per day! Information from: <http://www.publicmediacenter.org/pdfs/pirg.html

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 Chevron Texaco is based out of San Francisco and is lead by David J. O'Reilly, Chairman of the Board and Chief-executive Officer, and Peter Robinson,Vice Chairman of the Board.

                              

ChevronTexaco operates the Tengiz field in the Caspian Basin. Around the world ChevronTexaco operates in Africa, Asia-Pacific, Europe, Eurasia, Latin America and the Caribbean, Middle East, United States, and Canada. (see map below)   

World View Showing Location of All ChevronTexaco Operations

Picture Source: <http://www.chevrontexaco.com/operations/worldwide/>

ChevronTexaco has had investments in the Caspian region since 1989. In 1993 the compnay signed the TCO operating agreement.

The following is a track record of Chevron's environmental and political problems in Texas and in the Niger Delta.

In 1998 Chevron paid the State of Texas US$18 million to settle claims it undervalued oil pumped from public and Indian lands.
In December 1989 a Chevron pipeline in Beaumont, Texas spilled more than 230,000 gallons, polluting the Hildebrandt Bayou.
In November 1985, a Chevron plant in Mont Belview, Texas exploded, killing two workers, incinerating dozens of cars, and filling the sky with smoke visible from 30 miles away.
In October 1985, the EPA won a US$6 million penalty judgment against Chevron U.S.A. for violating the Clean Air Act at its El Paso, Texas oil refinery.

TEXACO IN ECUADOR

In 1993, a class action lawsuit against Texaco was filed in the state of New York by more than 30,000 Amazon residents seeking relief fro the health and environmental damage allegedly caused by the company's Ecuadorian operations.  This case is still pending.

CHEVRON IN THE NIGER DELTA

1956: Oil discovered in Nigeria.

1960: Nigeria wins independence from British rule.

1963: Gulf Oil begins oil production in Nigeria.

1966: Military coup ends civilian rule.

1984: Chevron buys Gulf Oil, which has extensive operations in Nigeria.

1995: Nigeria executes playwright Ken Saro-Wiwa and eight other human rights activists for their role in anti-oil protests.

May 1998: Two activists killed during four-day protest on Chevron's Parabe oil platform.

October 1998: Bands of protesters seize wells and pumping stations, shutting down a third of the country's oil production.

July 31, 2002:  Summer 2002 Women occupy Chevron drilling and port sites to protest lack of local
jobs and environmental damage.

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LUKOIL oil company Lukoil is operated by Valery Graifer, Chairman of the Board of Directors and General Director, and Vagit Alekperov, President of the Company and Chairman of the Management Committee. Their headquarters is located in Moscow, Russia.

 

 

 

LUKOIL is a Russian based company that has claims in the Kumkol-Lukoil field in the Caspian Basin. Around the world they are found in Russia, Ukraine, Bulgaria, Romania, Western Siberia, Turkey, Iraq, Egypt, Baltic States, Kazakhstan, Azerbaijan, Poland, and the United States. (see map below)

                       

            Red indicates operating areas        Blue indicates areas of no operations

Picture Source: <http://www.lukoil.com/>

This company has been engaged in large-scale geological and geophysical exploration of the northern and central Caspian Basin since 1995. Besides that Lukoil has been conducting geological research of the northern Caspian Sea bed since the year 2000 with in the framework of the Caspian oil companies activities.

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shell.com  Royal Dutch / Shell is operated by Lodewijk van Wachem, Chairman, and Jeroen van der Veer,

President and managing Director. .

 

 

Royal Dutch and Shell from the United Kingdom and the Netherlands operate in the Kashagan field of the North Caspian Sea and in 58 countries around the world. Some of those countries are Argentina Australia, Canada, China, France, Germany, Iceland, Japan, Kuwait, Mexico, Netherlands, UK, and the United States.

In April of 1996, Kazahstan planned to open a deal with Shell to drill oil in the Caspian Basin. As of June, 2001  Shell has invested $560 million in the OKIOC and CPC projects, according to the Kazakh Foreign Ministry.
 

Shell had a net income of $10,852,000 in 20001. However they lost 17.8 thousand tons instead of the targeted 8.5 thousand. Spills consist of crude oil, oil products, and chemicals. Shell claims that the significant increase in the amount of oil lost form 2000 to 2001 (9,900 tons to 17,800 tons) was due to a major rupture in the Trans Niger Pipeline, with a loss of 3,601 tons, and a well blow out at a site in Oman, with a loss of 1,275 tons. The blow out in Oman has been completely restored.

Picture Source: <http://www.shell.com/home/Framework?siteId=royal-en&FC1=&FC2=%2FLeftHandNav%3FLeftNavState%3D0&FC3=%2Froyal-en%2Fhtml%2Fiwgen%2Fabout_shell%2Four_performance%2Fenvironmental_performance_charts.html&FC4=%2Froyal-en%2Fhtml%2Fiwgen%2Fimpulse_sgbp_barriquitas.html&FC5=>

SHELL IN NIGERIA

Nigeria is Africa's leading oil producer and is the country's main natural resource and accounts for 80% of its revenue and 95% of its export earnings. Shell Companies in Nigeria use approximately 400 square kilometres of the total 70,000 square kilometres that operations in Nigeria are mainly based. Shell companies in Nigeria have made a huge commitment to studying how the energy industry needs to conduct itself in order to develop Nigeria's energy resources in a more sustainable way and to bring positive, long-tem benefits to the people of Nigeria.

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General Information About the Oil Industry:

Picture Source: <http://www.uneptie.org/outreach/wssd/docs/ sectors/final/oil-gas.pdf>

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