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Baghdad Says It Is ‘Bewildered’ by Kurdistan’s Oil Pact With Turkey

Iraqi Kurdistan’s aspiration to become an independent oil exporter took a hit Friday, when Baghdad criticized the semiautonomous region for publicly planning international sales before striking a deal with the central government. The Kurdistan Regional Government said it plans to sell the first parcel of oil at the end of January through the Kurdistan Oil Marketing Organization, rather than Iraq’s State Oil Marketing Organization. Iraq’s oil ministry responded with "deep regret" and bewilderment, saying Friday that Kurdistan’s plans are a "flagrant violation of the provisions of the Iraqi constitution." The ministry also criticized Turkey’s government for allowing Kurdish oil to pass through the Iraqi-Turkish pipeline without Baghdad’s consent. Exports without Baghdad’s approval could prove fraught. Iraq’s oil ministry has threatened to take legal action against any company that buys Kurdish oil exported without Baghdad’s blessing. The twist is the latest on a long and tortured road to an agreement […]

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Baker Hughes Sees Profit Hit on Iraq Disruption

Baker Hughes Inc. warned that a disruption to its business in Iraq last year will reduce its fourth-quarter profit by about $80 million. The oil-field services company, which resumed operations by the end of December, had warned in November that it suspended operations in Iraq following a protest incident at a facility belonging to one of its units. Baker Hughes had said there was a significant […]

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Exclusive: U.S. weighs targeted sanctions against South Sudan – sources

The United States is weighing targeted sanctions against South Sudan due to the failure of leaders in the world’s youngest nation to take steps to end a crisis that has brought the country to the brink of civil war, sources briefed on U.S. discussions told Reuters. "It’s a tool that has been discussed," a source told Reuters on condition of anonymity about the possibility of U.S. sanctions against those blocking peace efforts or fueling violence in South Sudan. Another source confirmed the remarks, though both declined to provide details on the precise measures under consideration. No decisions have been made yet, the sources added. Targeted sanctions focus on specific individuals, entities or sectors of country. The U.S. government was unlikely to consider steps intended to economically harm impoverished South Sudan but would likely focus on any measures on those individuals or groups it sees as […]

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South Sudan retakes oil town from rebels

South Sudanese troops on Friday retook the capital of an oil-producing state from rebels loyal to the country’s former vice president, a military spokesman said. Government troops retook Bentiu, the capital of Unity state, after a 2 1/2-hour battle, Col. Philip Aguer said. Aguer said the forces loyal to the former vice president, Riek Machar, had "destroyed" the town. Rebels looted the bank, stole food and set the market on fire, Aguer said. Doctors Without Borders, which is also known as MSF, said its facilities in Bentiu were also looted. "It is unacceptable that one of the only humanitarian organizations still providing assistance to the population in Bentiu has been looted," MSF General Director Arjan Hehenkamp said. The loss of Bentiu weakens Machar at the negotiating table in Ethiopia, where mediators are trying to defuse a political conflict that broke out Dec. […]

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South Sudan’s Death Toll Approaches 10,000 as Fighting Rages

The death toll in South Sudan ’s four-week-old conflict may be close to 10,000, as fighting continues in the world’s newest nation, the International Crisis Group said. “We believe the death toll to be approaching 10,000,” Casie Copeland, an analyst for Brussels-based ICG, said in an e-mailed response to questions. The United Nations has said the conflict has killed thousands of people and forced about 270,000 to flee their homes. The rebels estimate that as many as 6,000 people may have died. Government forces today recaptured Bentiu, capital of oil-producing Unity state, army spokesman Phillip Aguer said by phone from Juba. The army is now advancing on Bor, the capital of Jonglei state that’s currently held by the rebels, he said. Fighting began on Dec. 15 after President Salva Kiir accused former Vice President Riek Machar of trying to stage a coup, a charge Machar denies. The dispute escalated […]

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Italy's Eni Shuts Nigeria Pipeline After Sabotage

Eni SpA said Friday it had shut down an export pipeline following a sabotage in the Niger Delta of Nigeria as community unrest adds to oil theft to rattle the oil industry in the restive African nation. "There was a shutdown of the pipeline, due to sabotage" in Bayelsa State, southern Nigeria, a spokesman The pipeline, called Tedidaba-Brass pipeline and operated by a local Eni joint-venture, normally carries the high-quality Brass grade for export. The Eni spokesman said the Italian company was losing 3,500 barrels […]

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Italy’s Eni Shuts Nigeria Pipeline After Sabotage

Eni SpA said Friday it had shut down an export pipeline following a sabotage in the Niger Delta of Nigeria as community unrest adds to oil theft to rattle the oil industry in the restive African nation. "There was a shutdown of the pipeline, due to sabotage" in Bayelsa State, southern Nigeria, a spokesman The pipeline, called Tedidaba-Brass pipeline and operated by a local Eni joint-venture, normally carries the high-quality Brass grade for export. The Eni spokesman said the Italian company was losing 3,500 barrels […]

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Total joins UK’s pursuit of shale boom

Cuadrilla Shale Fracking Plant Total of France is to become the first major oil company to explore for shale gas in the UK, in a big boost for government efforts to create a US-style fracking boom on British soil . The deal, to be announced on Monday, will be seen as a big vote of confidence in the UK’s fledgling shale industry. The coalition has made the exploitation of Britain’s unconventional gas reserves a top priority, offering tax breaks to shale developers and promising big benefits to communities that host shale drillers. Total will announce on Monday a deal to join a shale gas exploration licence in the Midlands currently operated by Ecorp of the US, according to people familiar with the matter. The other partners in the project are Dart Energy and UK-listed Igas and Egdon Resources . George Osborne, chancellor, has argued that shale has “huge potential” […]

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U.S. gas output hits record high, but growth slows

Natural gas output in the U.S. is hitting record levels, but there’s mounting evidence that the best days of the shale boom are over. Government data released Tuesday show production climbed to 70.21 billion cubic feet in 2013. Output grew by just 1.5% from 2012, the slowest rate since output fell in 2005, before widespread use of new drilling technologies began to unlock massive quantities of natural gas from shale rock formations. The EIA is projecting output to rise by 2.1% in 2014 and 1.3% in 2015. The slowdown has major implications for gas prices. As abundant supplies flooded the market, benchmark U.S. gas prices have fallen, averaging $3.20 per million British thermal units over the past five years, down from close to $9/mmBtu in 2008. Sustained bouts of cold weather this winter have eroded supplies, spiking prices to two-a-half-year highs near $4.50/mmBtu recently. A […]

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U.S. oil boom could slip in 2015, feds forecast

The shale-oil boom that has lifted economies and made millionaires in Texas and North Dakota will slow next year for the first time since it began in 2011, a new federal forecast shows. U.S. oil producers are slated to increase their output by about 750,000 barrels per day in 2015, according to the U.S. Energy Information Administration’s first projections about the nation’s energy position next year, released this week. But that’s well below the 1.3-million-barrel growth in daily production forecast for this year and the growth in each of the past two years. And lower oil prices – falling, in part, because improved vehicle efficiency has reduced fuel demand – could dampen the incentive for energy companies to harvest as much oil from the dense shale rock, said John Staub, head of the information agency’s exploration and production team. Still, the agency says […]

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