Tag Archives: Norway Statoil

Are Scotland and England Headed for Divorce Court?

By David Lee Smith, The Motley Fool

Filed under:

We may be about to enter a period of intrigue in Scotland comparable to the events that Shakespeare poured into “Macbeth”. Amid a push for increased autonomy for his country from England, Scottish First Minister Alex Salmond announced recently that Scotland will conduct a referendum in 18 months seeking to abolish its three-centuries-old union with the English.

It doesn’t take an intellect comparable to that of the Bard of Avon to conclude that the proposed separation is tied to oil and gas in the North Sea. The vast majority of British hydrocarbons emanate from waters closest to Scotland. Indeed, as Austin-based geopolitical consultants at Stratfor have noted, Scotland is responsible for fully “90% of British offshore oil production and more than half its offshore natural gas production. ”

A Scottish fortune looming?
Given that balance — or lack thereof — Salmond has said that, if separated from the other United Kingdom countries, Scotland could generate in excess of 50 billion pounds (about $76 billion) within five years. He also believes that the resulting tax revenue would permit the country to establish its own sovereign wealth funds, much as Norway has been able to accomplish from its own North Sea tax receipts.

But there are those who believe that the Scottish take on its likely proceeds may be excessive. For starters, past revenues from North Sea waters have been volatile, to say the least. As the 20th century came to an end, with crude prices hunkering around $10 per barrel, the country took in about 2.5 billion pounds in production-related taxes. And then, with that same black gold commanding up to $147 per barrel in 2008, the tax yield rose to nearly $13 billion pounds.

Dangerously dipping production
Trepidations exist in a number of quarters, however, about future North Sea production volumes. Unlike such venues as the U.S. Gulf of Mexico, Brazil, Angola, or Iraq, output from the waters surrounding the British Isles is sliding. From 2.7 million barrels a day in 2001, production from the sector tumbled to 1.5 million daily barrels in 2010. Further, British oil output in 2011 reached a low not seen since the 1970s.

None of this is to imply that asset trading and hydrocarbon discoveries by the producers have all but ceased in the North Sea. As recently as 2010, for example, Norway‘s Statoil uncovered the John Sverdrup field — which may contain 3.3 billion barrels of oil — in its country’s sector. And Apache appears to be perpetually shopping in North Sea waters. About a decade ago, it bought BP‘s Forties field. And in 2011, it paid $1.75 billion for ExxonMobil‘s North Sea assets, including the sizable Beryl field.

Both Apache acquisitions are in waters that would almost certainly be accorded to Scotland in the event of a separation from England. In November, Royal Dutch Shell boosted its stake in …read more
Source: FULL ARTICLE at DailyFinance

3 Key Regions for Energy Development

By Aimee Duffy, The Motley Fool

Filed under:

The success of employing new technology to exploit unconventional sources in the U.S. can sometimes distract us from the world energy picture. Discoveries of oil and gas in foreign lands can and will impact the state of American energy, however. With that in mind, let’s take a look at energy development in three very different places: East Africa, New Zealand, and Colombia.

East Africa
The story about East Africa‘s offshore natural gas reserves has been growing for quite some time. Like any good story, the numbers and size of the reserves in question grow as it gets told more often. Except unlike most fables, these outsized numbers aren’t borne of exaggeration but of more drilling and a growing number of new discoveries. The region’s reserves are so highly sought after that in the past week alone there were three separate announcements involving some of the biggest oil companies in the world.

Last week, Italian energy company Eni announced that it was selling a 20% stake in its Area 4 project offshore Mozambique to China National Petroleum Corporation for $4.2 billion. CNPC is China‘s largest oil and gas company. A state-owned operation, it is also the parent of the publicly traded PetroChina. Area 4 is thought to hold 75 trillion cubic feet of gas.

Also last week, ExxonMobil and Norway’s Statoil discovered gas at their third deepwater well in Block 2, offshore Tanzania. With a 65% working interest in the project, Statoil is the operator and has completed five wells in the block over the last 15 months. Estimates now place the total gas reserves at 15 tcf to 17 tcf (trillion cubic feet).

Finally, Russian gas company Gazprom announced yesterday that it was also seeking a stake in Eni’s Area 4 project. Talks are only in the early stages, but expect this deal to continue to develop as Russian President Vladimir Putin travels to Africa for the BRICS summit next week.

New Zealand
At the beginning of the year, I wrote about Shell’s efforts to conduct seismic surveys offshore New Zealand in its quest for oil. This time, the story is about natural gas.

New Zealand is self-sufficient with its natural gas production. The country’s 20 natural gas fields generated about 1.5 tcf in 2011. The government’s Petroleum Action Plan aims to increase the development of these resources. Currently, gas production contributes roughly $2 billion to the country’s GDP.

So far, the plan seems to be working. Improving production results allowed Canadian company Methanex to announce it was increasing capacity at its New Zealand methanol plants. The company will boost capacity in the country by 700,000 metric tons by the end of the year, for a total of 2.2 million metric tons. The increase will necessitate restarting one facility and expanding another.

Colombia
Colombia has been on the radar of many investors because of the country’s commitment to growing its oil production. In 2006, production sat at 529,000 barrels per day. As …read more
Source: FULL ARTICLE at DailyFinance

Algeria reels from tales of oil sector corruption

Corrupt and gorging itself at the trough of Algeria‘s vast oil wealth — that’s how most Algerians privately view the elites running the country. Yet few have been willing to say so publicly, until now.

New corruption scandals are shining a new spotlight on state oil company Sonatrach, which jointly with BP and Norway’s Statoil runs the desert gas plant that was the scene of a bloody hostage standoff in January.

A recent anguished public plea by a former Sonatrach official shocked Algerians and raised hopes that the leadership will try to clean up the oil and gas sector in Africa‘s largest country.

There’s plenty at stake: Algeria is also one of the continent’s richest countries, as the No. 3 supplier of natural gas to Europe, with $190 billion in reserves, up $8 billion in the last year alone.

The Feb. 18 letter by former Sonatrach vice president Hocine Malti in the French-language Algerian daily El Watan broke the silence around the company. Addressing the shadowy leader of Algeria‘s intelligence service, it asks if he is really serious about investigating new bribery scandals involving Sonatrach and Italian and Canadian companies.

When Italian prosecutors in January announced an investigation into oil company ENI and subsidiary SAIPEM for allegedly paying €197 million ($256.1 million) in bribes to secure an €11 billion contract with Sonatrach, it provoked a firestorm in the Algerian media, until the North African country’s justice system finally announced its own inquiry Feb. 10.

Malti, author of the “Secret History of Algerian Oil,” scoffed that Algerian authorities were only following the lead of international investigators and wondered if Mohammed “Tewfik” Mediene, the feared head of the Department of Research and Security, would allow the real sources of corruption to be tried in court.

“Is it too much to dream that some of your fellow generals, certain ministers or corrupt businessmen — members of the pyramid that you are on top of — members of this fraternity, might also end up in front of justice?” he asked in the letter. “Or will it be like always, just the small fry are targeted by this new investigation?”

“Will we have to continue to listen for news from the Milan prosecutor to know the sad reality of our country, to discover how certain people, whom you know quite well, people you have come across …read more
Source: FULL ARTICLE at Fox World News

Algerian gas plant in terror siege resumes work

A gas installation in Algeria that was the site of a terrorist attack last month that left 37 hostages dead has partially resumed production.

Prime Minister Abdelmalek Sellal started up one of three gas streams at the Ain Amenas site Sunday, bringing it up to about 35 percent capacity, according to state radio.

On Jan. 16, a band of al-Qaida affiliated militants attacked the Ain Amenas complex and took dozens of foreign workers hostage. After a four-day standoff, the Algerian army moved in and killed 29 attackers and captured three others. At least 37 hostages, including one Algerian worker, died in the battle.

The Ain Amenas facility is jointly run by BP, Algeria‘s Sonatrach and Norway’s Statoil. Sunday marked the anniversary of Algeria‘s 1971 nationalization of its oil industry.

…read more
Source: FULL ARTICLE at Fox World News

Crisis-hit Greece backs pipeline for Caspian gas

Greece, Italy and Albania signed an agreement Wednesday backing a proposed pipeline to transport natural gas from the Caspian Sea to western Europe, intensifying the rivalry with a competing project.

The 800-kilometer (500-mile) Trans-Adriatic pipeline system, or TAP, would have an initial annual capacity of 10 billion cubic meters (353 cubic feet) of natural gas from Azerbaijan. The venture is run by consortium comprised by Germany’s E.ON Ruhrgas, Norway’s Statoil and the Swiss-based Axpo group.

Greek Prime Minister Antonis Samaras said the project would provide €1.5 billion ($2.02 billion) of private investment in his country, which is suffering through a sixth year of recession.

“This will change Greece from a second-tier energy destination to a significant transit point,” Samaras said. “It will create 2,000 Greek jobs in the early stages of the project in regions that are suffering high rates of unemployment.”

TAP is widely seen as a competitor of the Nabucco West pipeline, a separate proposed project that would transport gas to Austria via Bulgaria, Romania, and Hungary. Both are vying for the right to transport natural gas from Azerbaijan‘s Shah Deniz gas field to western Europe by 2019.

The Shah Deniz gas producers will decide in June which route to use to export their gas to Europe.

TAP officials on Wednesday said they did not yet have an estimate of the total cost of the project and added that, if selected, construction of the pipeline would start in 2015. The pipeline’s annual capacity could be doubled to 20 billion cubic meters, they said.

Wednesday’s agreement was signed by Greek Foreign Minister Dimitris Avramopoulos, along with Albanian Finance and Energy Minister Edmond Haxhinasto and Italian Development Minister Corrado Passera, while representatives of the Azerbaijani government also attended the ceremony.

“This is an important step for the diversification of Europe‘s energy supply and access by Azerbaijan to Europe‘s market,” Passera said.

European governments are keen to bring Azeri gas to their markets, and ease current domination by Russia.

Kjetil Tungland, TAP‘s Managing Director, argued the venture would also spur other badly-needed growth-boosting projects in Greece.

“Projects like TAP signal confidence for other investors,” he said.

…read more
Source: FULL ARTICLE at Fox World News

Algeria says 5 foreigners still missing from terrorist siege may be lost in Sahara

Algerian forces are scouring the Sahara desert for five foreigners missing since Islamist militants attacked a remote natural gas plant, an official said Tuesday.

An Al Qaeda-affiliated band of fighters attacked the vast natural gas complex on Wednesday, killing 37 hostages, including an Algerian security guard, in a four-day standoff that ended after Algerian special forces stormed the plant.

“Are they dead? Did they attempt to flee the site after the attack like some other expatriates? Are they lost in the desert after taking a wrong turn?” said the official, who is a member of Prime Minister Abdemalek Sellal‘s office. “These are all questions we ask ourselves.”

The Ain Amenas gas plant, jointly run by BP, Norway’s Statoil and the Algerian state oil company, is located deep in the Sahara, some 800 miles from the coast, with few population centers nearby.

The desert in the area is flat rocky and featureless and while roasting hot in the summer, during the winter months the mercury drops to 3 C (37 F) at night, with average highs of 18 C (64 F) during the day.

BP said that the operations at the plant are still suspended.

The Algerian official, who spoke on condition of anonymity since he was not authorized to speak to the press, said catering and cleaning services at the remote plant near Libya‘s border have restarted.

The audacious attack transfixed the world and showed the improved capabilities of Al Qaeda-linked groups in the Sahara. Algerian Prime Minister Abdelmalek Sellal said 29 militants died in the attack and three were captured. He said the group came from northern Mali and included fighters from all over North Africa as well as two Canadians, and managed to sneak across hundreds of miles of desert, across the borders of Libya and Niger before finally entering Algeria.

A group called the Masked Brigade claimed the operation saying it was in retaliation for Algeria‘s support of a French military operation against extremist groups in northern Mali.

Source: FULL ARTICLE at Fox World News

Algeria attacks pose fresh security issues

The deadly attacks on an Algerian natural gas complex will do little to discourage the drive for lucrative energy exploration in northern Africa, experts say, but it is forcing companies to increase security after largely ignoring the risks of operating in the remote desert region.

Spanish, Norwegian and British oil companies quickly evacuated workers from Algerian energy facilities in the wake of the well-coordinated hostage taking by Islamic militants, which ended in bloody chaos in an Algerian raid. Energy companies are loath to discuss the issue, but experts say the financial bounty is too high to scare away firms like gas giant BP and Norway’s Statoil for long.

“The risks are never going to be so much that they outweigh the rewards from working in these environments,” Alison Lyall, a security analyst at Harnser Risk Group in Norwich, England, said Monday.

Lyall, author of a recent report for the European Commission on evaluating the costs of security, say companies in the exploration and production industry — even those operating in risky areas — have simply paid little attention to the issue.

“There is a strong enterprise culture which prides itself on taking risks,” she said. “I can show you that the percentage spent on security on very high-value assets is shockingly low.”

The assault last Wednesday on Algeria‘s Ain Amenas gas complex by a multinational band illustrates the danger posed by Al-Qaida in the Islamic Maghreb and its offshoots, who have grabbed power propelled by long-simmering ethnic tensions in Mali and the revolution in Libya. In the wake of the violence, energy companies will have to study operations for possible flaws and upgrade contingency plans with information gleaned from the shock attack.

Ian McCredie, former vice president of corporate security for Royal Dutch Shell, said the threat had obviously been underestimated.

“There will need to be reassessment,” said McCredie, now CEO of Forbes Research Group in the United States.

Nigel Inkster, a former senior British intelligence officer who heads a risk-analysis unit at the International Institute for Strategic Studies in London, said the incident raised questions both for oil companies and Algeria.

“The boardrooms of oil companies looking to work in Algeria are going to be convulsed by this, and uncertain of how to proceed,” Inkster said. “It raises all sorts of concerns about all sorts of economic activity … (including) uranium mines in Niger, which are pretty important to the global economy.”

Algeria has taken a strong tack against the terrorists, rejecting offers of help from Britain, the U.S. and other to go it alone in a typical tough and uncompromising response. BP and Statoil were compelled to entrust their employees lives to the Algerian security forces, and that won’t change — at least immediately. Algeria insists that it has the know-how to assure the security of energy plants.

“We are going to reinforce the security and we will rely first of all on our own means,” Algerian Energy Minister Youcef Yousfi said on Sunday, according to state news agency APS. “There is no question of accepting outside security forces.”

BP and Royal Dutch Shell, whose employees in Nigeria have been the targets of gangs of kidnappers and militants, would not comment on security arrangements in Algeria. But Ted Jones, the CEO of specialist evacuation company Northcott Global Solutions in London, noted companies alarmed by the attack are scaling up their physical security, moving from unarmed to armed operations, and shifting nonessential staff to safer locations.

Companies can become complacent after a period of safe operation, he said, then change course when something terrible occurs.

“Suddenly something like this happens and they realize they’re much closer to the danger … and there’s a sort of panic response, which is perfectly natural,” he said.

The energy industry is not a new target. McCredie recalled that significant changes in security followed terror attacks in Saudi Arabia, including a 2004 hostage-taking incident at oil industry compounds at Khobar which ended in the deaths of 22 people.

“There have been all sorts of attacks in other places, Yemen, Syria, Iraq. These attacks are not unusual. What’s unusual about this one is it was a big surprise. It shouldn’t have been,” McCredie said. Al-Qaida in the Islamic Maghreb “had been making these threats for a long time. No one thought they had the capacity.”

But, he said there are limits to what even extra security forces could accomplish in the battle against terrorists.

“They are mobile, it’s a huge vast area, very, very difficult to police, and difficult to keep up surveillance, so a small number of people can have the element of surprise,” McCredie said. “Security forces can’t patrol the whole area.”

___

AP reporters Gregory Katz, Jill Lawless and Cassandra Vinograd in London and Greg Keller in Paris contributed to this report.

Source: FULL ARTICLE at Fox World News

Desert siege toll passes 80; bomb squads search

Algerian bomb squads searched a gas refinery laced with mines on Monday, looking for more explosive traps a day after the discovery of more bodies throughout the site raised the toll from the terrorist siege well past 80.

Special forces from the Algerian military stormed the plant on Saturday to end the four-day siege, then the government began the painstaking work of finding and defusing the explosives planted in what government officials said was a plot by the Islamic extremists to blow up the complex and kill all their captives.

In a statement, the Masked Brigade, the group that claimed to have masterminded the takeover, warned of more such attacks against any country backing France‘s military intervention in neighboring Mali, where the French are trying to stop an advance by Islamic extremists.

“We stress to our Muslim brothers the necessity to stay away from all the Western companies and complexes for their own safety, and especially the French ones,” the statement said.

Algeria said after Saturday’s assault by government forces that at least 32 extremists and 23 hostages were killed. On Sunday, the Algerian bomb squads found 25 more bodies, said a security official, who spoke on condition of anonymity because of the sensitivity of the situation.

“These bodies are difficult to identify. They could be the bodies of foreign hostages or Algerians or terrorists,” the official said.

In addition, a wounded Romanian who had been evacuated died, raising the overall death toll to at least 81.

Two private Algerian TV stations and an online news site said security forces scouring the plant found five militants hiding out on Sunday and learned that three others had fled. That information could not be immediately confirmed by security officials.

“Now, of course, people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched a vicious and cowardly attack,” British Prime Minister David Cameron said. Three Britons were killed and another three were feared dead.

On Monday, Philippine Foreign Affairs officials said six Filipinos were among the hostages killed. Spokesman Raul Hernandez told reporters that 16 Filipinos have been accounted for and four others are still missing.

The dead hostages were also known to include at least one American and a French worker. Nearly two dozen foreigners by some estimates were unaccounted for.

It was unclear whether anyone was rescued in the final assault on the complex, which is run by the Algerian state oil company along with BP and Norway’s Statoil.

Authorities said the bloody takeover was carried out Wednesday by 32 men from six countries, under the command from afar of the one-eyed Algerian bandit Moktar Belmoktar, founder of the Masked Brigade, based in Mali. The attacking force called itself “Those Who Sign in Blood” and has claimed to have Canadians in the cell as well.

The Masked Brigade said Sunday the attack was payback against Algeria for allowing over-flights of French aircraft headed to Mali and for closing its long border with Mali. In an earlier communication, the Brigade claimed to have carried out the attack in the name of al-Qaida.

Armed with heavy machine guns, rocket launchers, missiles and grenades, the militants singled out foreign workers at the plant, killing some of them on the spot and attaching explosive belts to others.

Algeria‘s tough and uncompromising response to the crisis was typical of its take-no-prisoners approach in confronting terrorists, favoring military action over negotiation. Algerian military forces, backed by attack helicopters, launched two assaults on the plant, the first one on Thursday.

The militants had “decided to succeed in the operation as planned, to blow up the gas complex and kill all the hostages,” Algerian Communications Minister Mohamed Said told state radio.

Norwegian Foreign Minister Espen Barth Eide said the terrorists had tried to blow up the plant on Saturday but managed only to start a small fire. “That’s when they started to execute hostages, and the special forces intervened,” Eide said. Norway’s Statoil said five Norwegians were still missing.

An audio recording of Algerian security forces speaking with the head of the kidnappers, Abdel Rahman al-Nigiri, on the second day of the drama indicated the hostage-takers were trying to organize a prisoner swap.

“You see our demands are so easy, so easy if you want to negotiate with us,” al-Nigiri said in the recording broadcast by Algerian television. “We want the prisoners you have, the comrades who were arrested and imprisoned 15 years ago. We want 100 of them.”

The Algerians’ use of forced raised an international outcry from some countries worried about their citizens.

But French Foreign Minister Laurent Fabius said Sunday on French television: “The terrorists … they’re the ones to blame.”

David Plouffe, a senior adviser to President Barack Obama, said that al-Qaida and al-Qaida-affiliated groups remain a threat in North Africa and other parts of the world, and that the U.S. is determined to help other countries destroy those networks.

Speaking on “Fox News Sunday,” Plouffe said the tragedy in Algeria shows once again “that all across the globe countries are threatened by terrorists who will use civilians to try and advance their twisted and sick agenda.”

___

Ganley reported from Paris. Associated Press writers Paul Schemm in Rabat, Morocco, and Lori Hinnant in Paris also contributed to this report.

Source: FULL ARTICLE at Fox World News

Death toll in Algeria hostage crisis continues to rise as more countries identify dead

The death toll from the terrorist siege at a natural gas plant in the Sahara climbed past 80 on Sunday as Algerian forces searching the refinery for explosives found dozens more bodies, many so badly disfigured it was unclear whether they were hostages or militants, a security official said.

Algerian special forces stormed the plant on Saturday to end the four-day siege, moving in to thwart what government officials said was a plot by the Islamic extremists to blow up the complex and kill all their captives with mines sown throughout the site.

In a statement, the Masked Brigade, the group that claimed to have masterminded the takeover, warned of more such attacks against any country backing France‘s military intervention in neighboring Mali, where the French are trying to stop an advance by Islamic extremists.

“We stress to our Muslim brothers the necessity to stay away from all the Western companies and complexes for their own safety, and especially the French ones,” the statement said.

Algeria said after Saturday’s assault by government forces that at least 32 extremists and 23 hostages were killed. On Sunday, Algerian bomb squads sent in to blow up or defuse the explosives found 25 more bodies, said the security official, who spoke on condition of anonymity because of the sensitivity of the situation.

“These bodies are difficult to identify. They could be the bodies of foreign hostages or Algerians or terrorists,” the official said.

In addition, a wounded Romanian who had been evacuated died, raising the overall death toll to at least 81.

“Now, of course, people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched a vicious and cowardly attack,” British Prime Minister David Cameron said. Three Britons were killed and another three were feared dead.

On Monday, Philippine Foreign Affairs officials said six Filipinos were among the hostages killed. Spokesman Raul Hernandez told reporters that 16 Filipinos have been accounted for and four others are still missing.

The dead hostages were also known to include at least one American and French workers. Nearly two dozen foreigners by some estimates were unaccounted for.

It was unclear whether anyone was rescued in the final assault on the complex, which is run by the Algerian state oil company along with BP and Norway’s Statoil.

Two private Algerian TV stations and an online news site said security forces scouring the plant found five militants hiding out and learned that three others had fled. That information could not be immediately confirmed by security officials.

Authorities said the bloody takeover was carried out Wednesday by 32 men from six countries, under the command from afar of the one-eyed Algerian bandit Moktar Belmoktar, founder of the Masked Brigade, based in Mali. The attacking force called itself “Those Who Sign in Blood.”

The Masked Brigade said Sunday the attack was payback against Algeria for allowing over-flights of French aircraft headed to Mali and for closing its long border with Mali. In an earlier communication, the Brigade claimed to have carried out the attack in the name of al-Qaida.

Armed with heavy machine guns, rocket launchers, missiles and grenades, the militants singled out foreign workers at the plant, killing some of them on the spot and attaching explosive belts to others.

Algeria‘s tough and uncompromising response to the crisis was typical of its take-no-prisoners approach in confronting terrorists, favoring military action over negotiation. Algerian military forces, backed by attack helicopters, launched two assaults on the plant, the first one on Thursday.

The militants had “decided to succeed in the operation as planned, to blow up the gas complex and kill all the hostages,” Algerian Communications Minister Mohamed Said told state radio.

Norwegian Foreign Minister Espen Barth Eide said the terrorists had tried to blow up the plant on Saturday but managed only to start a small fire. “That’s when they started to execute hostages, and the special forces intervened,” Eide said. Norway’s Statoil said five Norwegians were still missing.

An audio recording of Algerian security forces speaking with the head of the kidnappers, Abdel Rahman al-Nigiri, on the second day of the drama indicated the hostage-takers were trying to organize a prisoner swap.

“You see our demands are so easy, so easy if you want to negotiate with us,” al-Nigiri said in the recording broadcast by Algerian television. “We want the prisoners you have, the comrades who were arrested and imprisoned 15 years ago. We want 100 of them.”

In another phone call, al-Nigiri said that half the militants had been killed by the Algerian army on Thursday and that he was ready to blow up the remaining hostages if security forces attacked again. An organization that monitors videos from radicals posted one showing al-Nigiri with what appeared to be an explosive belt around his waist.

The Algerians’ use of forced raised an international outcry from some countries worried about their citizens.

But French Foreign Minister Laurent Fabius said Sunday on French television: “The terrorists … they’re the ones to blame.”

David Plouffe, a senior adviser to President Barack Obama, said that al-Qaida and al-Qaida-affiliated groups remain a threat in North Africa and other parts of the world, and that the U.S. is determined to help other countries destroy those networks.

Speaking on “Fox News Sunday,” Plouffe said the tragedy in Algeria shows once again “that all across the globe countries are threatened by terrorists who will use civilians to try and advance their twisted and sick agenda.”

Source: FULL ARTICLE at Fox World News

Death toll climbs past 80 in siege in the Sahara

The death toll from the terrorist siege at a natural gas plant in the Sahara climbed to at least 81 on Sunday as Algerian forces searching the refinery for explosives found dozens more bodies, many so badly disfigured it was unclear whether they were hostages or militants, a security official said.

Algerian special forces stormed the plant on Saturday to end the four-day siege, moving in to thwart what government officials said was a plot by the Islamist militants to blow up the complex and kill all their hostages with mines sown throughout the site.

The government said after the assault that at least 32 extremists and 23 hostages were killed. Then, on Sunday, Algerian bomb squads sent in to blow up or defuse the explosives found 25 bodies, said the security official, who spoke on condition of anonymity because of the sensitivity of the situation.

“These bodies are difficult to identify. They could be the bodies of foreign hostages or Algerians or terrorists,” the official said.

In addition, a wounded Romanian who had been evacuated died, raising the overall death toll to at least 81.

“Now, of course, people will ask questions about the Algerian response to these events, but I would just say that the responsibility for these deaths lies squarely with the terrorists who launched a vicious and cowardly attack,” British Prime Minister David Cameron said. Three Britons were killed and another three were feared dead.

The dead were also known to include American, Filipino and French workers. Algerian authorities said 685 of their citizens, the backbone of the workforce, escaped without saying how many may have died. More than two dozen foreigners were unaccounted for.

It was unclear whether anyone was rescued in the final assault on the complex, which is run by the Algerian state oil company along with BP and Norway’s Statoil.

Authorities said the bloody takeover was carried out Wednesday by 32 men from six countries, under the command from afar of the one-eyed Algerian bandit Moktar Belmoktar, founder of the Masked Brigade, based in neighboring Mali. The attacking force called itself “Those Who Sign in Blood.”

The militants initially said the operation was payback for French military intervention in neighboring Mali, where al-Qaida-linked rebels are on the march, but later they said it was two months in the planning, long before France sent in troops.

Armed with heavy machine guns, rocket launchers, missiles and grenades, the militants singled out foreign workers at the plant, killing some of them on the spot and attaching explosive belts to others.

Algeria‘s tough and uncompromising response to the crisis was typical of its take-no-prisoners approach in confronting terrorists, favoring military action over negotiation. Algerian military forces, backed by attack helicopters, launched two assaults on the plant, the first one on Thursday.

The militants had “decided to succeed in the operation as planned, to blow up the gas complex and kill all the hostages,” Algerian Communications Minister Mohamed Said said in a state radio interview.

The Masked Brigade claimed responsibility for the attack in the name of al-Qaida, according to a video obtained by a Mauritania-based website that sometimes carries messages of jihadists.

An audio recording of Algerian security forces speaking with the head of the kidnappers, Abdel Rahman al-Nigiri, on the second day of the drama indicated the hostage-takers were trying to organize a prisoner swap.

“You see our demands are so easy, so easy if you want to negotiate with us,” al-Nigiri said in the recording broadcast by Algerian television. “We want the prisoners you have, the comrades who were arrested and imprisoned 15 years ago. We want 100 of them.”

In another phone call, al-Nigiri said that half the militants had been killed by the Algerian army on Thursday and that he was ready to blow up the remaining hostages if security forces attacked again.

SITE Intelligence Group, which monitors videos from radicals, posted one showing al-Nigiri with what appeared to be an explosive belt around his waist.

The Algerians’ use of forced raised an international outcry from some countries worried about their citizens.

But French Foreign Minister Laurent Fabius said Sunday on French television: “The terrorists … they’re the ones to blame.”

David Plouffe, a senior adviser to President Barack Obama, said that al-Qaida and al-Qaida-affiliated groups remain a threat in North Africa and other parts of the world, and that the U.S. is determined to help other countries destroy those networks.

Speaking on “Fox News Sunday,” Plouffe said the tragedy in Algeria shows once again “that all across the globe countries are threatened by terrorists who will use civilians to try and advance their twisted and sick agenda.”

___

Elaine Ganley and Lori Hinnant in Paris contributed to this report.

Source: FULL ARTICLE at Fox World News

Algeria hostage situation reportedly comes to violent end

Algerian special forces stormed a natural gas complex in the Sahara desert on Saturday to end a standoff with an Al Qaeda-linked terror group that left at least 23 hostages dead and killed all 32 militants involved, the Algerian government said.

A senior U.S. tells Fox News that details of the siege remain unclear. It is not known whether anyone was rescued in the final operation, but the number of hostages killed on Saturday — seven — was how many the militants had said that morning they still had. The government described the toll as provisional and some foreigners remain unaccounted for.

“Today, the thoughts and prayers of the American people are with the families of all those who were killed and injured in the terrorist attack in Algeria,” President Obama said in a statement. “The blame for this tragedy rests with the terrorists who carried it out, and the United States condemns their actions in the strongest possible terms. We have been in constant contact with Algerian officials and stand ready to provide whatever assistance they need in the aftermath of this attack. We also will continue to work closely with all of our partners to combat the scourge of terrorism in the region, which has claimed too many innocent lives. This attack is another reminder of the threat posed by Al Qaeda and other violent extremist groups in North Africa. In the coming days, we will remain in close touch with the Government of Algeria to gain a fuller understanding of what took place so that we can work together to prevent tragedies like this in the future.”

U.S. Defense Secretary Leon Panetta said much remains “sketchy” about what happened at the remote Ain Amenas gas field.

“We know that lives have been lost,” he said.

Asked how many Americans were in danger and what happened to them, Panetta said he knew Americans were still being held hostage earlier Saturday. On what happened to them, he said, “we need to get better information.”

The siege at Ain Amenas transfixed the world after radical Islamists stormed the complex, which contained hundreds of plant workers from all over the world, then held them hostage surrounded by the Algerian military and its attack helicopters for four tense days that were punctuated with gun battles and dramatic tales of escape.

Algeria‘s response to the crisis was typical of its history in confronting terrorists, favoring military action over negotiation, which caused an international outcry from countries worried about their citizens. Algerian military forces twice assaulted the two areas where the hostages were being held with minimal apparent mediation — first on Thursday, then on Saturday.

“To avoid a bloody turn of events in response to the extreme danger of the situation, the army’s special forces launched an intervention with efficiency and professionalism to neutralize the terrorist groups that were first trying to flee with the hostages and then blow up the gas facilities,” Algeria‘s Interior Ministry said in a statement about the standoff.

Immediately after the assault, French President Francois Hollande gave his backing to Algeria‘s tough tactics, saying they were “the most adapted response to the crisis.”

“There could be no negotiations” with terrorists, the French media quoted him as saying in the central French city of Tulle.

Hollande said the hostages were “shamefully murdered” by their captors, and he linked the event to France’s military operation against Al Qaeda-backed rebels in neighboring Mali. “If there was any need to justify our action against terrorism, we would have here, again, an additional argument,” he said.

In the final assault, the remaining band of militants killed the hostages before 11 of them were in turn cut down by the special forces, Algeria‘s state news agency said. The military launched its Saturday assault to prevent a fire started by the extremists from engulfing the complex and blowing it up, the report added.

A total of 685 Algerian and 107 foreigner workers were freed over the course of the four-day standoff, the ministry statement said, adding that the group of militants that attacked the remote Saharan natural gas complex consisted of 32 men of various nationalities, including three Algerians and explosives experts.

The military also said it confiscated heavy machine guns, rocket launchers, missiles and grenades attached to suicide belts.

Sonatrach, the Algerian state oil company running the Ain Amenas site along with BP and Norway’s Statoil, said the entire refinery had been mined with explosives, and that the process of clearing it out is now under way.

Algeria has fought its own Islamist rebellion since the 1990s, elements of which later declared allegiance to al-Qaida and then set up new groups in the poorly patrolled wastes of the Sahara along the borders of Niger, Mali, Algeria and Libya, where they flourished.

The standoff has put the spotlight on these Al Qaeda-linked groups that roam these remote areas, threatening vital infrastructure and energy interests. The militants initially said their operation was intended to stop a French attack on Islamist militants in neighboring Mali — though they later said it was two months in the planning, long before the French intervention.

The militants, who came from a Mali-based Al Qaeda splinter group run by an Algerian, attacked the plant Wednesday morning. Armed with heavy machine guns and rocket launchers in four-wheel drive vehicles, they fell on a pair of buses taking foreign workers to the airport. The buses’ military escort drove off the attackers in a blaze of gunfire that sent bullets zinging over the heads of crouching workers. A Briton and an Algerian — probably a security guard — were killed.

The militants then turned to the vast gas complex, divided between the workers’ living quarters and the refinery itself, and seized hostages, the Algerian government said. The gas flowing to the site was cut off.

Saturday’s government statement said the militants came across the border from “neighboring countries,” while the militants said they came from Niger, hundreds of miles (kilometers) to the south.

On Thursday, Algerian helicopters kicked off the military’s first assault on the complex by opening fire on a convoy carrying both kidnappers and their hostages to stop them from escaping, resulting in many deaths, according to witnesses.

The accounts of hostages who escaped the standoff showed they faced dangers from both the kidnappers and the military.

Ruben Andrada, 49, a Filipino civil engineer who works as one of the project management staff for the Japanese company JGC Corp., described how he and his colleagues were used as human shields by the kidnappers, which did little to deter the Algerian military.

On Thursday, about 35 hostages guarded by 15 militants were loaded into seven SUVs in a convoy to move them from the housing complex to the refinery, Andrada said. The militants placed “an explosive cord” around their necks and were told it would detonate if they tried to run away, he said.

“When we left the compound, there was shooting all around,” Andrada said, as Algerian helicopters attacked with guns and missiles. “I closed my eyes. We were going around in the desert. To me, I left it all to fate.”

Andrada’s vehicle overturned allowing him and a few others to escape. He sustained cuts and bruises and was grazed by a bullet on his right elbow. He later saw the blasted remains of other vehicles, and the severed leg of one of the gunmen.

The site of the gas plant spreads out over several acres and includes a housing complex and the processing site, about a mile apart, making it especially complicated for the Algerians to secure the site and likely contributed to the lengthy standoff.

“It’s a big and complex site. It’s a huge place with a lot of people there and a lot of hiding places for hostages and terrorists,” said Col. Richard Kemp, a retired commander of British forces who had dealt with hostage rescues in Iraq and Afghanistan. “These are experienced terrorists holding the hostages.”

While the Algerian government has only admitted to 23 hostages dead so far, the militants claimed through the Mauritanian news website ANI that the helicopter attack alone killed 35 hostages.

One American, a Texan — Frederick Buttaccio from the Houston suburb of Katy — is among the dead.

French Defense Minister Jean-Yves Le Drian said Saturday that a Frenchman killed, Yann Desjeux, was a former member of the French special forces and part of the security team. The remaining three French nationals who were at the plant are now free, the Foreign Ministry said.

The British government said Saturday it is trying to determine the fate of six people from Britain who are either dead or unaccounted for.

Prime Minister David Cameron of Britain said, “There is no justification for taking innocent life in this way. Our determination is stronger than ever to work with allies right around the world to root out and defeat this terrorist scourge and those who encourage it.”

The Norwegian government said there were five Norwegians unaccounted for.

Romanian Prime Minister Victor Ponta said Saturday one Romanian hostage was killed in the course of the siege, while the Malaysian government said two of its citizens were still missing.

The attack by the Masked Brigade, founded by Algerian militant Moktar Belmoktar, had been in the works for two months, a member of the brigade told the ANI news outlet. He said militants targeted Algeria because they expected the country to support the international effort to root out extremists in neighboring Mali and it was carried out by a special commando unit, “Those Who Signed in Blood,” tasked with attacking nations supporting intervention in Mali.

The kidnappers focused on the foreign workers, largely leaving alone the hundreds of Algerian workers who were briefly held hostage before being released or escaping.

Several of them arrived haggard-looking on a late-night flight into Algiers on Friday and described how the militants stormed the living quarters and immediately separated out the foreigners.

Mohamed, a 37-year-old nurse who like the others wouldn’t allow his last name to be used for fear of trouble for himself or his family, said at least five people were shot to death, their bodies still in front of the infirmary when he left Thursday night.

Chabane, an Algerian who worked in food services, said he bolted out the window and was hiding when he heard the militants speaking among themselves with Libyan, Egyptian and Tunisian accents. At one point, he said, they caught a Briton.

“They threatened him until he called out in English to his friends, telling them, `Come out, come out. They’re not going to kill you. They’re looking for the Americans,”‘ Chabane said.

“A few minutes later, they blew him away.”

The Associated Press contributed to this report.

Source: FULL ARTICLE at Fox World News

Algeria: 32 militants killed, with 23 hostages

In a bloody finale, Algerian special forces stormed a natural gas complex in the Sahara desert on Saturday to end a standoff with Islamist extremists that left at least 23 hostages dead and killed all 32 militants involved, the Algerian government said.

With few details emerging from the remote site in eastern Algeria, it was unclear whether anyone was rescued in the final operation, but the number of hostages killed on Saturday — seven — was how many the militants had said that morning they still had. The government described the toll as provisional and some foreigners remained unaccounted for.

The siege at Ain Amenas transfixed the world after radical Islamists linked to al-Qaida stormed the complex, which contained hundreds of plant workers from all over the world, then held them hostage surrounded by the Algerian military and its attack helicopters for four tense days that were punctuated with gun battles and dramatic tales of escape.

Algeria‘s response to the crisis was typical of its history in confronting terrorists, favoring military action over negotiation, which caused an international outcry from countries worried about their citizens. Algerian military forces twice assaulted the two areas where the hostages were being held with minimal apparent mediation — first on Thursday, then on Saturday.

“To avoid a bloody turn of events in response to the extreme danger of the situation, the army’s special forces launched an intervention with efficiency and professionalism to neutralize the terrorist groups that were first trying to flee with the hostages and then blow up the gas facilities,” Algeria‘s Interior Ministry said in a statement about the standoff.

Immediately after the assault, French President Francois Hollande gave his backing to Algeria‘s tough tactics, saying they were “the most adapted response to the crisis.”

“There could be no negotiations” with terrorists, the French media quoted him as saying in the central French city of Tulle.

Hollande said the hostages were “shamefully murdered” by their captors, and he linked the event to France’s military operation against al-Qaida-backed rebels in neighboring Mali. “If there was any need to justify our action against terrorism, we would have here, again, an additional argument,” he said.

In New York, the U.N. Security Council issued a statement condemning the militants’ terrorist attack and said all perpetrators, organizers, financiers and sponsors of such “reprehensible acts” must be brought to justice.

In the final assault, the remaining band of militants killed the hostages before 11 of them were in turn cut down by the special forces, Algeria‘s state news agency said. The military launched its Saturday assault to prevent a fire started by the extremists from engulfing the complex and blowing it up, the report added.

A total of 685 Algerian and 107 foreigner workers were freed over the course of the four-day standoff, the ministry statement said, adding that the group of militants that attacked the remote Saharan natural gas complex consisted of 32 men of various nationalities, including three Algerians and explosives experts.

The military also said it confiscated heavy machine guns, rocket launchers, missiles and grenades attached to suicide belts.

Sonatrach, the Algerian state oil company running the Ain Amenas site along with BP and Norway’s Statoil, said the entire refinery had been mined with explosives, and that the process of clearing it out is now under way.

Algeria has fought its own Islamist rebellion since the 1990s, elements of which later declared allegiance to al-Qaida and then set up new groups in the poorly patrolled wastes of the Sahara along the borders of Niger, Mali, Algeria and Libya, where they flourished.

The standoff has put the spotlight on these al-Qaida-linked groups that roam these remote areas, threatening vital infrastructure and energy interests. The militants initially said their operation was intended to stop a French attack on Islamist militants in neighboring Mali — though they later said it was two months in the planning, long before the French intervention.

The militants, who came from a Mali-based al-Qaida splinter group run by an Algerian, attacked the plant Wednesday morning. Armed with heavy machine guns and rocket launchers in four-wheel drive vehicles, they fell on a pair of buses taking foreign workers to the airport. The buses’ military escort drove off the attackers in a blaze of gunfire that sent bullets zinging over the heads of crouching workers. A Briton and an Algerian — probably a security guard — were killed.

The militants then turned to the vast gas complex, divided between the workers’ living quarters and the refinery itself, and seized hostages, the Algerian government said. The gas flowing to the site was cut off.

Saturday’s government statement said the militants came across the border from “neighboring countries,” while the militants said they came from Niger, hundreds of miles (kilometers) to the south.

On Thursday, Algerian helicopters kicked off the military’s first assault on the complex by opening fire on a convoy carrying both kidnappers and their hostages to stop them from escaping, resulting in many deaths, according to witnesses.

The accounts of hostages who escaped the standoff showed they faced dangers from both the kidnappers and the military.

Ruben Andrada, 49, a Filipino civil engineer who works as one of the project management staff for the Japanese company JGC Corp., described how he and his colleagues were used as human shields by the kidnappers, which did little to deter the Algerian military.

On Thursday, about 35 hostages guarded by 15 militants were loaded into seven SUVs in a convoy to move them from the housing complex to the refinery, Andrada said. The militants placed “an explosive cord” around their necks and were told it would detonate if they tried to run away, he said.

“When we left the compound, there was shooting all around,” Andrada said, as Algerian helicopters attacked with guns and missiles. “I closed my eyes. We were going around in the desert. To me, I left it all to fate.”

Andrada’s vehicle overturned allowing him and a few others to escape. He sustained cuts and bruises and was grazed by a bullet on his right elbow. He later saw the blasted remains of other vehicles, and the severed leg of one of the gunmen.

The site of the gas plant spreads out over several hectares (acres) and includes a housing complex and the processing site, about a mile (1.6 kilometers) apart, making it especially complicated for the Algerians to secure the site and likely contributed to the lengthy standoff.

“It’s a big and complex site. It’s a huge place with a lot of people there and a lot of hiding places for hostages and terrorists,” said Col. Richard Kemp, a retired commander of British forces who had dealt with hostage rescues in Iraq and Afghanistan. “These are experienced terrorists holding the hostages.”

While the Algerian government has only admitted to 23 hostages dead so far, the militants claimed through the Mauritanian news website ANI that the helicopter attack alone killed 35 hostages.

One American, a Texan — Frederick Buttaccio from the Houston suburb of Katy — is among the dead.

French Defense Minister Jean-Yves Le Drian said Saturday that a Frenchman killed, Yann Desjeux, was a former member of the French special forces and part of the security team. The remaining three French nationals who were at the plant are now free, the Foreign Ministry said.

The British government said Saturday it is trying to determine the fate of six people from Britain who are either dead or unaccounted for.

Prime Minister David Cameron of Britain said, “There is no justification for taking innocent life in this way. Our determination is stronger than ever to work with allies right around the world to root out and defeat this terrorist scourge and those who encourage it.”

The Norwegian government said there were five Norwegians unaccounted for.

Romanian Prime Minister Victor Ponta said Saturday one Romanian hostage was killed in the course of the siege, while the Malaysian government said two of its citizens were still missing.

The attack by the Masked Brigade, founded by Algerian militant Moktar Belmoktar, had been in the works for two months, a member of the brigade told the ANI news outlet. He said militants targeted Algeria because they expected the country to support the international effort to root out extremists in neighboring Mali and it was carried out by a special commando unit, “Those Who Signed in Blood,” tasked with attacking nations supporting intervention in Mali.

The kidnappers focused on the foreign workers, largely leaving alone the hundreds of Algerian workers who were briefly held hostage before being released or escaping.

Several of them arrived haggard-looking on a late-night flight into Algiers on Friday and described how the militants stormed the living quarters and immediately separated out the foreigners.

Mohamed, a 37-year-old nurse who like the others wouldn’t allow his last name to be used for fear of trouble for himself or his family, said at least five people were shot to death, their bodies still in front of the infirmary when he left Thursday night.

Chabane, an Algerian who worked in food services, said he bolted out the window and was hiding when he heard the militants speaking among themselves with Libyan, Egyptian and Tunisian accents. At one point, he said, they caught a Briton.

“They threatened him until he called out in English to his friends, telling them, ‘Come out, come out. They’re not going to kill you. They’re looking for the Americans,'” Chabane said.

“A few minutes later, they blew him away.”

_____

Paul Schemm reported from Rabat, Morocco. Associated Press writers Aomar Ouali in Algiers; Oliver Teves in Manila, Philippines; Elaine Ganley in Paris; Sylvia Hui in London; Jan M. Olsen in Copenhagen; and Peter Spielmann at the U.N. contributed to this report.

Source: FULL ARTICLE at Fox World News