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Opinion: President Museveni praises Equatorial Guinea for it’s rampant Oil-Corruption; wants to learn his tricks!

In these days the President Yoweri Kaguta Museveni of the Republic of Uganda are on a state visit in Malabo, visiting and learning tricks from the Equatorial Guinean President Teodoro Nguema Obiang, who has used the oil to enrich himself and his loyal subjects. Not build a welfare state, but make sure the family of Obiang get wealthy. Certainly, Uganda is preparing for their own oil production in the Lake Albertine basin, as the pipeline building from the production to the Port Tanga in Tanzania.

This is why President Museveni are visiting Equatorial Guinea to learn the tricks of the trade, as the state of Uganda are still in the dark of the oil-deals between the international companies and the state. We can wonder how the funds will be spoiled and how Museveni plans to use the oil funds for personal gains. If so, he wouldn’t praise President Obiang, who has his whole career to spend the oil profits from his republic. This is what Museveni wants to learn, since his career has been tricking out all sorts of play from Ugandan republic. The petroleum profits can be misspent and hidden just like in the republic of Obiang. Take a look!

President Museveni’s praise:

We are therefore in Equatorial Guinea for two things: looking at how to support prosperity of one another and how to push for our strategic security. I also congratulate Equatorial Guinea for using it’s oil and gas very well. When I was last here for the AU Summit, I noticed gaps between the airport and the city centre. Today, all these gaps were gone. In their place are new, well-planned buildings. And I see the city is refurbished. Some people say oil is a curse but in Equatorial Guinea it is a blessing” (Yoweri Kaguta Museveni, 26.08.2017)

Business in Equatorial Guinea:

Since the discovery of the offshore oil deposits, many investors have shown great interest in the country. Foreign direct investment inflows into the country had thus been consistently high for the past years. Nevertheless, in 2016 the FDI inflow amounted to USD 54 million, a sharp decrease from USD 233 million recorded the previous year (and the historical peak of USD 2.73 billion in 2010) . The total stock of FDI in the country is currently at USD 13.4 billion” (…) “Corruption in particular is problematic. In addition, the business climate of the country remains rather unfavourable for investment. Cumbersome procedures and high compliance costs slow licensing and make starting a business more difficult. Weak regulatory and judicial systems may discourage foreign investment as well, along with high credit costs and limited access to financing. The government controls long-term lending through the state-owned development bank. Equatorial Guinea ranked 178th out of 190 countries in the 2017 Doing Business report published by the World Bank, losing three spots compared to the previous year” (Santander Trade, 2017).

Son of the President on trial:

The corruption trial of Teodoro Nguema Obiang Mangue, the son of the president of Equatorial Guinea, ended in Paris on 6 July with the prosecution calling for a three-year jail term, a €30 million (US$34 million) fine and the confiscation of assets. The Tribunal will return a verdict on 27 October. The 48-year-old vice-president of Equatorial Guinea was not in court to hear the prosecution’s claim that he used money stolen from his country’s treasury and laundered through a shell company to fund a lavish lifestyle in France” (Transparency International, 2017).

This was what that is well-known of the Equatorial Guinea corruption and the son of President has also had challenging cases in the United States. Now the son is also having alleged fraud and criminal charges in France. Clearly, the Ugandan President has already known for corruption behavior. Therefore, even a state agency of PPDA has some words, that the government needs strict regulations before procurement and infrastructure development. This will be clearly important when it comes to petroleum industry. Take a look!

PPDA strict regulation on public procurement:

Public procurement is a key pillar of the public financial management system. The country’s budget and plans are translated into actual services to our people through the public procurement system. It is also the link between the public sector and the private sector as it is the medium through which the private sector does business with Government. Public procurement therefore involves large sums of money and as our budget grows with the priorities of Government remaining infrastructure development, the proportion of the budget earmarked for public procurement remains significant and therefore calls for strict regulation” (PPDA, 2017).

Audits and investigations by the Public Procurement and Disposal of Assets indicate that corruption in the procurement process manifests more in the evaluation of bids, reported to be at 58%. PPDA’s Manager Capacity Building Ronald Tumuhairwe says such corrupt practices lead to awarding of contracts to incompetent individuals hence shoddy works in several government projects” (…) “He adds that the second process where corruption manifests is awarding of contracts at 12.5%, followed by receipt and opening of bids, reviewing evaluation of bids, advertising and signing of contracts” (Sebunya, 2017).

President Museveni clearly has own agencies saying it is important with strict regulations on procurement and infrastructure developments like the ones needed for oil industry in the republic. The regulation of oil industry is lax, to make sure the state isn’t transparent with its profits and taxation of the industry. This is what Museveni wants, that the state and the public doesn’t know the contracts or the agreements between the parties involved. That is something President Obiang surely have the capacity to teach Museveni. And how to make sure his family is earning from the state resource, instead of the public and the state itself. Peace.

Reference:

Transparency International – ‘ON TRIAL FOR CORRUPTION: FRENCH PROSECUTORS DEMAND JAIL TERM AND €30 MILLION FINE FOR OBIANG’ (11.07.2017) link: https://www.transparency.org/news/feature/on_trial_for_corruption_french_prosecutors_demand_jail_term_and_30_million

Santander Trade – ‘EQUATORIAL GUINEA: FOREIGN INVESTMENT’ (August 2017) link: https://en.portal.santandertrade.com/establish-overseas/equatorial-guinea/investing-3

Sebunya, Wycliffe – ‘Corruption manifests most in the procurement process – IG’ (25.08.2017) link:http://radioonefm90.com/corruption-manifests-most-in-the-procurement-process-ig/

PPDA – ‘EVALUATING INNOVATIVE ANTI CORRUPTION POLICIES IN PUBLIC PROCUREMENT IN UGANDA’ (02.08.2017) link: https://www.ppda.go.ug/evaluating-innovative-anti-corruption-policies-in-public-procurement-in-uganda/

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U.S. Treasury fines ExxonMobile meager $2m for violation of the Russian-Ukraine Sanctions!

Some days you wonder if the connections of the New York isn’t to strong for the moment. When the joys of their loot and their power is not making them lose their senses. The common sense is clearly gone, as the company formerly run by Rex Tillerson, the now State Secretary of United States. Who couldn’t care less about the relationship between the United States of America and the Russian Federation. As the illegal and not internationally accepted annexation of the Crimea from the Republic of Ukraine happen. Still, even as that was happening the former Standard Oil baby ExxonMobile decided to be a trading partner and create opportunities in the vast resources in Russia and Russian territories. Now today they we’re fined, but that was a little slap on their wrist, as the real wealth inside the deal shows how much they really could have earned. Therefore, the crime and the penalty doesn’t fit. The Company gets away with a heist, but has to pay small interests for doing so. Now they are waiting for the possible time for their giant payoff and this will be simple write-off in their results in the next quarterly estimates. This sort of fine isn’t that serious, as it can easily chop it off and continue to eat.

First we will look into what the Wall Street Journal wrote about the deal between Russia and ExxonMobile, the second and third are about today’s fine and you see why it insulting fine to give.

A U.S. official said the new penalties would affect Exxon’s current drilling in the icy Kara Sea with its Kremlin-controlled partner, OAO Rosneft, though the extent of the impact was unclear Thursday. No other Western energy company has as much direct exposure to Russia as Exxon, thanks to a $3.2 billion deal giving the company access to a swath of the Arctic larger than Texas that could hold the equivalent of billions of barrels of oil and gas. Officials in Europe, which has extensive trade links to Russia, have insisted that Western nations share the fallout from sanctions against Moscow. Russia has said it would retaliate against additional sanctions with measures of its own, further heightening the risks to companies operating there, legal experts said. Exxon is “assessing the sanctions,” said Alan Jeffers, a company spokesman. “It’s our policy to comply with all laws.” (Gilbert, 2014)

ExxonMobil Corporation Assessed a Penalty for Violating the Ukraine-Related Sanctions Regulations: ExxonMobil Corp., oflrving, Texas, including its U.S. subsidiaries ExxonMobil Development Company and ExxonMobil Oil Corp. (collectively, “ExxonMobil”), has been assessed a civil monetary penalty of $2,000,000 for violations of the Ukraine-Related Sanctions Regulations, 31 C.F.R. part 589 (Ukraine-Related Sanctions Regulations). Between on or about May 14, 2014 and on or about May 23, 2014, ExxonMobil violated§ 589.201 of the Ukraine Related Sanctions Regulations when the presidents of its U.S. subsidiaries dealt in services of an individual whose property and interests in property were blocked, namely, by signing eight legal documents related to oil and gas projects in Russia with Igor Sechin, the President of Rosneft OAO, 1 and an individual identified on OF AC’s List of Specially Designated Nationals and Blocked Persons (the “SDN List”) (referred to hereinafter as an “SDN”)” (U.S. Treasury, 20.07.2017).

OF AC considered the following to be aggravating factors: (1) ExxonMobil demonstrated reckless disregard for U.S. sanctions requirements when it failed to consider warning signs associated with dealing in the blocked services of an SDN; (2) ExxonMobil’s senior-most executives knew of Sechin’ s status as an SDN when they dealt in the blocked services of Sechin; (3) ExxonMobil caused significant harm to the Ukraine-related sanctions program objectives by engaging the services of an SDN designated on the basis that he is an official of the Government of the Russian Federation contributing to the crisis in Ukraine; and (4) ExxonMobil is a sophisticated and experienced oil and gas company that has global operations and routinely deals in goods, services, and technology subject to U.S economic sanctions and U.S. export controls” (U.S. Treasury, 20.07.2017).

So it’s okay, the company ExxonMobile was fined for intervening in a Republic and inside a state where there was clear sanctions against trade. That was something Rex Tillerson knew and also the Russian counterparts, but ExxonMobile didn’t care. They just wanted the profits and earn on the fragile arctic and also into areas like the annexed Crimea. This shows the intent of profiting while being under sanctions and not respecting the laws of the United States and being a registered company residing in the United States.

This show the ethical backdrop of the New York Gang and the Administration of today, we cannot know how much the company earned before the stop between Rosneft and ExxonMobile. The suspension of activity between them. What we can imagine is that it was vastly more than the little they paid for breaking the law. Peace.

Reference:

Gilbert, Daniel – ‘Sanctions Over Ukraine Put Exxon at Risk’ (11.09.2014) – Wall Street Journal

OAG Muwanga explains in two reports problems and errors within the Petroleum Industry!

The Auditor General has two reports on the Petroleum Industry and the issues of Petroleum Data and the Petroleum Fund. The errors of the state, the PAYE of the tax to URA. Proves that the monies earmarked for the Petroleum Fund, ends up in the Consolidation Fund. This is proof of the problematic use of the added taxes before the oil adventure really takes off and the drilling of the explored blocks in the Lake Albertine Basin. Where already different international companies have come to drill and the state is making a petroleum pipeline to Port Tanga in Tanzania. Therefore, these vast resources and possible taxes created by the industry and within the Republic. Still, the default problems that the Auditor General address can be fixed. It is just a matter of morals and actually following guidelines. Some are even set in the Public Finance and Management Act of 2015, so if for instance URA follows it, the problems of transactions into wrong fund can create payment arrears and also future problem of spending by the state. Since the misuse of funds and taxes can be allocated to other than what they was expected, as the Consolidation Fund has other uses than the Petroleum Fund. Just take a look!

Petroleum Fund:

For the six months ending December 31, 2016, the Fund received non tax revenue worth UGX 922,348,854 (USD270,900) as surface rental fees from Tullow Uganda Operations Pty and Total E & P Uganda” (OAG, P: 7, 2017).

It was however noted that monies collected by Uganda Revenue Authority (URA) under the income tax on income derived from petroleum operations such as PAYE, VAT and WHT is not being remitted to the Uganda Petroleum Fund. This contravenes the Public Finance and Management Act 2015” (…) “In their opinion PAYE is not tax charged on income derived from petroleum operations but paid by the employees and as such it had been excluded from the definitions of petroleum revenues. Arising out of the above it was established that UGX.l1,390,530,053 collected through the commercial banks and remitted to the consolidated fund should have instead been transferred to the Petroleum Fund. Management has promised to remit it to the Petroleum Fund before closure of the financial year 2016/17” (OAG, P: 10, 2017).

During the period under review, the fund received USD 270,900 (Two hundred seventy thousand, nine hundred dollars) in respect of surface area rentals consisting of USD 113,400 (One hundred thirteen thousand, four hundred dollars) paid by Total E& P Uganda for the development areas of Ngiri, Jobi-Rii and Gunya and USD 157,500 was paid by Tullow Uganda Operations Pty Ltd for development areas of soga, gege, Kasemene, Wahrindi, Nzizi-Mputa & Waraga, and Kigogole- Ngara Unrealised foreign exchange gains worth UGX 15,093,435,449 have been recognised in the Statement of Changes in Equity. These arose from translating the USD opening balances and revenue collected during the period into UGX at the closing rate for reporting purposes” (OAG, P: 14, 2017).

Petroleum Data:

The oil companies did not fully comply with submission of reports relating to their drilling, exploration activities and operations as required. Delays and non-submission of reports results in an incomplete database which may reduce the effective use of the database in petroleum resource management” (OAG, P: vi, 2016). “The shortcomings in the management of petroleum data by the Ministry of Energy and Mineral Development may affect the completeness of the data on the existing petroleum potential, extent of reserves, and amount recoverable thus reducing Uganda’s ability to maximally exploit and benefit from its oil and gas resource potential. A thorough understanding of the resource base and its geographical distribution informs key decisions on the rate of exploitation and potential future revenues” (OAG, P: viii, 2016).

This should all be worrying that the State and the Industry isn’t sufficiently ready for the activity, as the URA cannot even allocate funds correctly. This is even before the Petroleum Data is taken care of and made sure that the exploitation and drilling happens where the best well is within the block. Secondly, the real value of the reports and the licenses that the state would offer to the companies. That because the flow of data and the status of it wouldn’t be where it could be. This is losses created by maladministration and lacking will of institutionalize the knowledge. Instead, the Petroleum Industry is controlled and has just a few handshakes away from the State House. That is why the URA might have delivered the funds to the Consolidation Fund instead of the Petroleum Fund. All of the potential might be wasted in the lack of protocol and care of resources management that is needed in the Ministry of Energy and Mineral Development (MoEMD).

The recommendations and the looks into the issues should be taken serious by the Petroleum Industry and the MoEMD. So the state could both earn more on the industry and also create more positive growth through the provisions that is already made in Public Finance Management Act (PFMA) 2015. So time will tell if they will be more reckless, if they will listen to the OAG or if the Presidential Handshakes will steal it all for keeping the NRM cronyism at bay. Peace.

Reference:

Office of the Auditor General Uganda – ‘REPORT OF THE AUDITOR GENERAL ON THE FINANCIAL STATEMENTS OF THE PETROLEUM FUND FOR THE SIX MONTH PERIOD ENDED 31sT DECEMBER 2016’ (07.06.2017) – John F.S. Muwanga

Office of the Auditor General Uganda – ‘Management of Petroleum Data by the Ministry of Energy and Mineral Development’ (December 2016) – John F.S. Muwanga

Ugandan economy could get Oil-Shocks due to external factors, recent BoU report claims!

Surprise, surprise the Bank of Uganda (BoU) has made a working paper on the possible consequences of the oil price, the oil exports and the oil imports on the Ugandan economy. This didn’t exceed my expectation of a report or paper, but said enough to clearly anticipate changes in the economy with the coming export. Even as the BoU called the domestic oil production in embryonic stages, which means the real impact will come when it is closer petroleum production the GDP and CPI feel more impact of the oil prices and the volumes exported from the Lake Albert Basin.

That the Ugandan State and the Republic of Uganda, should know that the fresh foreign exchange and currency into the economy, as the domestic parts of petroleum is not having big impact on the economy! Still, the export can change it as the oil prices and change the consumer price index for instance. Take a look!

One such shock that is a source of major concern and risks to monetary policy-making in Uganda is the oil shock. To our knowledge, the effects of oil shocks in Uganda, to date, have not yet been analyzed. The objective of this paper therefore, is to analyze the nature and importance of oil shocks to Uganda’s economy in a dynamic framework” (Nyanzi & Bwire, P: 4, 2017).

According to the Uganda’s Ministry of Energy and Mineral Development (2012), oil provides about 10 percent of Uganda’s energy requirements – the rest is sourced from the small and underdeveloped and unreliable electricity sub-sector and the cheap biomass energy. The oil sector was also deregulated in 1994, under the broad structural reforms implemented by the Government of Uganda, which effectively eliminated oil prices subsidies. Uganda is endowed with commercially-viable oil reserves, but domestic oil production is in embryonic stages. Consequently, all of the oil-energy needs of the country are satisfied by imports” (Nyanzi & Bwire, P: 8, 2017).

The results of the variance decomposition in regard to oil shock are not entirely unexpected, given the structure of Uganda’s economy. Oil and its products constitute 8 percent of total intermediate consumption and 10 percent of energy requirements. In addition, oil is crucial to electricity supply in Uganda because hydro-electricity is unreliable and insufficient. This implies little or no substitutability of oil with hydro-electric energy in production in case of adverse oil shock, which could justify the long-run 20 percent variance in output due to oil shocks. Regarding consumer prices, the small percentage of variance in consumer prices due to oil shocks is justified by the small weight of oil in the CPI basket. Oil constitutes about 1 percent in the 2009/10 rebased CPI basket, of which 0.8 percent is oil for personal transportation and 0.2 percent a source of liquefied energy at home. These numbers are not surprising given that over 75 percent of the population live in rural areas and depend mainly on wood and charcoal as a source of energy, and that rates of car ownership are generally low. Moreover, the main source of short-run volatility in the Uganda CPI is weather-related factors affecting food prices. This leaves the bulk of fluctuations in the core consumer prices (Comprising over 80 percent) explained by demand” (Nyanzi & Bwire, P: 18, 2017).

Oil shocks are transmitted through the supply channel, as a shock that increases the international price of oil leads to opposite movements in real output and consumer prices in Uganda” (Nyanzi & Bwire, P: 19, 2017).

It is hard to say how it could impact and how the petroleum production and exports will change the economy, how the prices and the inflation, as the measure of how much the price of the crude-oil will be at the given time. That the government has secret agreements with oil companies and also agreements with other to build the crude-oil pipeline that goes to Tanzania. Therefore, the reaction in the economy is not yet known, but with the background and knowledge of the how it is now. Most likely a real output and change in consumer prices in Uganda.

That will be an oil-shock no-one can be prepared for. Unless the Government and Parliament created legislation and policies who might soften the change of the economy. Therefore, with this in mind, the National Resistance Movement, the State House and the President Museveni have work to do. That is if they consider the implication the petroleum production and exports will have on inflation, currency value and consumer prices index as well. This report should open some eyes into it, but it should not be surprising. Peace.

Reference:

Nyanzi, Sulaiman & Bwire, Thomas – ‘Working Paper No. 04/2017 – The Macroeconomic responses to Petro Shocks for Uganda’ (May, 2017)

A look into Donald Trump’s possible nominee for Secretary of State: Rex Tillerson, what has he said and done?

tillerman-putin-award

“Whether I choose him or not for “State”- Rex Tillerson, the Chairman & CEO of ExxonMobil, is a world class player and dealmaker. Stay tuned!” – Donald J. Trump on Twitter 11.12.2016.

We have to scrutinize and look over the men that possibly will be the most powerful men and woman in the Trump Administration, as they should not be forgotten what they did in the past. Especially when Trump himself has branded Obama Administration as ‘hopeless’ and ‘bad’; therefore his Administration should be better, though by the men and woman who is already picked his stature for military and rich-men is staggering, more than the qualifications for each role in Government. That is what is worrying. This time around it is the current Chairman of ExxonMobile, a negotiator and deal-maker for the grand-oil empire from Texas, the Rex Tillerson who is connected in Venezuela, Russia and Kazakhstan. He is the next in line for the possible task of Secretary of State!

“If you ask the average person on the street about U.S. energy and U.S. oil in particular, our situation, most Americans would say, ‘Oh, we’re energy poor; we don’t have enough oil; we don’t have enough natural gas.’” – Rex Tillerman

What he even wished to happen inside the US in the midst of the Obama Administration:

“Q: President Obama has outlined a plan to cut oil imports by one-third over the next 10 years. Is this feasible?

A: We expect gasoline demand in the U.S. to decline about 17% over the next 20 years. And that’s a function of both efficiency standards that have been put in place for automobiles, but also an ongoing penetration of hybrid and hybrid-electric vehicles. There’s going to be a natural decline in demand for motor fuels from that. That will be partially offset by increasing demand for heavy-duty fuels like diesel. That, along with the penetration of bio fuels, is going to result in a mitigation of imports. Whether we eliminate a third of the imports is hard to say. Another piece of our success will rest on whether the U.S. government decides to make available the lands that it controls, because 60% of the remaining oil resource in the U.S. is on federal lands and 40% of the remaining gas resource. It’s up to the federal government to allow the industry to explore those lands and develop those resources that could have a big impact on supply in the future” (Bartiromo, 2011).

Secretary of State does: “The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service, and U.S. Agency for International Development” (Secretary of State, link: http://www.state.gov/secretary/).

So as the foreign affairs job has lots of responsibility to be the face of the nation when the President self cannot travel or negotiate, even do diplomatic missions to keep up with alliances and treaties that the US Government have or currently in the works. So the position should be done by somebody with tact and courtesy for the will of the US Government and the foreign dignitaries so that the person doesn’t offend either party while working for the common good. That is something that the possible former ExxonMobile chairman Tillerson has to do.

jeff-simon-exxon

Negotiations in Venezuela:

“According to the XM executives, the last significant contact XM had with the BRV or PDVSA was XM Chairman and CEO Rex Tillerson’s May 16 meeting with Ambassador Bernardo Alvarez. During the meeting, Tillerson told Alvarez that XM must have a confidentiality agreement before it could begin negotiations on the remaining migration issues. In addition, he stated book value was not an acceptable basis for compensation for lost value. Finally, Tillerson said XM was looking for a win-win solution but warned that XM was willing to go to arbitration if it had to do so. The executives later mentioned that PDVSA’s stake in the Chalmette refinery was mentioned as a possible component in a compensation package. They did not specify who raised the topic” (…) “When asked if other IOCs had entered into negotiations with the BRV, XM executives replied they did not believe any companies had entered into meaningful negotiations. They stated they met with Total executives on May 22 to discuss the general situation. The Total executives stated their company has also rejected book value as a basis for compensation for lost value. In addition, they told the XM executives they believe the Sincor strategic association will be hit with a large tax assessment in the near future. Seniat, the BRV tax authority, presented CP and Chevron earlier this month with tax bills for close to USD 550 million for back taxes for the Petrozuata and Hamaca strategic associations for the years 2003 to 2005” (WikiLeaks, 2007).

In 2008 – Trading oil in Kazakstan:

“(Note: The one exception was a threat by President Nazarbayev in a December meeting with Tillerson’s deputy to use the subsoil legislation. Nazarbayev, however, reverted to his previous public line when he reassured the Ambassador privately the next day that the legislation would not/not be used against any existing contract. End Note.) In the end, both ExxonMobil and ConocoPhilips confirmed that the GOK used tough, but legitimate business pressures to pursue their case” (…) “ExxonMobil told us that CEO Rex Tillerson had decided that Exxon was going to hold the line on this issue. However, all our sources indidated that Tillerson was subjected to very strong pressure in the final negotiations, both by the other CEOs and by the Kazakhstani side. According to our in-country ExxonMobil contact (who was not in the meetings but who was extensively debriefed about them), it was the lure of future business in Kazakhstan that eventually led Tillerson to reverse course, and to agree to a “below market price” figure of $1.8 billion as the valuation of KMG’s increased share. (Note: Determining the “market price” for this share is essentially impossible, as different financial models will yield wildly varying results depending on the assumptions used. That said, all parties involved agree that $1.8 billion is a “below market price,” even if they can not tell you how much below market. End Note.)” (WikiLeaks, 2008). In 2011: “0100 Kazakh President Nursultan Nazarbayev meets Rex Tillerson, the CEO of ExxonMobile corporation, and Dhimitrios Khristofias, the  president of Cyprus, within the framework of his visit to New York to  attend 66th session of the UN General Assembly. Video shows meetings;  Rex Tillerson and Dhimitrios Khristofias, speaking to camera” (WikiLeaks, 2011).

“Experience tells us that a good foundation is critical for success in the Arctic and elsewhere. ExxonMobil’s Sakhalin-1 project with Rosneft is an example where we have put this experience to work.” – Rex Tillerson

On Russia:

“Tillerson said he valued the efforts of the Russian government to improve the tax regime and that it would have a positive effect on Russian and foreign investors.The moves will help expand cooperation in the complex situation in Russia, he said. Tillerson said he was encouraged to see Russia move to create a competitive environment, taking into account the experiences of other tax regimes in other countries” (WikiLeaks, 2011). “Prime Minister Vladimir Putin yesterday put the total of direct  investment in joint projects by Rosneft and ExxonMobil at 200-300  billion dollars, but “if we are talking about infrastructure, the construction of the necessary buildings, and surface facilities, the  investment could reach 500 billion dollars”. However, ExxonMobil expects  its agreement with Rosneft to encourage the Russian authorities to ease the tax regime for the industry. “Such steps will help the government to  expand cooperation in the difficult situation that is taking shape in  Russia,” the head of ExxonMobil, Rex Tillerson, explained” (WikiLeaks, 2011).

xom-nyt-2000-3-23-unsettledscience-p1-normal

On Fracking:

Exxon CEO Rex Tillerson speaking at a January 2010 congressional hearing concerning the $41 billion merger of Exxon with XTO Energy (one of the worlda**s biggest natural gas drilling companies), said he could support revealing toxic frack mixes. He added that, by combining the hydraulic fracturing and horizontal drilling processes a**we can now find and produce unconventional natural gas supplies miles below the surface in a safe, efficient and environmentally responsible manner.a** Exxon has threatened to nix its XTO acquisition if Congress makes fracking a**illegal or commercially impractical.a**” (WikiLeaks, 2010).

Article about Tillerson faith in Global Warming:

“They’re clearly cognizant of global warming – they employ some of the world’s best scientists, after all, and they’re bidding on all those oil leases made possible by the staggering melt of Arctic ice. And yet they relentlessly search for more hydrocarbons – in early March, Exxon CEO Rex Tillerson told Wall Street analysts that the company plans to spend $37 billion a year through 2016 (about $100 million a day) searching for yet more oil and gas.

There’s not a more reckless man on the planet than Tillerson. Late last month, on the same day the Colorado fires reached their height, he told a New York audience that global warming is real, but dismissed it as an “engineering problem” that has “engineering solutions.” Such as?” (Bill McKibben – ‘Global Warming’s Terrifying New Math’ 09.07.2012).

David Fenton sent an E-Mail titled: “Murdoch climate campaign” on the 19.02.2015 to Clinton Campaign Manager John Podesta that said: “Hi again. Here is the plan to go after WSJ and FOX on climate. I have 500,000 of this pledged if I can raise another million. It’s a real pledge from Graeme Wood in Australia. I sure hope something like this can happen it’s long overdue. Thanks again, David”. This E-Mail had an attachment where this we’re said:

“1)       A climate science ad series (surprisingly affordable) on the Wall Street Journal’s opinion page, sponsored by a mainstream institution like Columbia University’s Earth Institute or the Union of Concerned Scientists.  These would be unassailably factual and scientific but also compelling, memorable and clear. They would show the facts the Journal denies — Co2 from fossil fuels traps heat, the earth has warmed, the CEO of EXXON believes it why not this paper? This series would stress consequences for the economy and mainstream support from groups like the World Bank, International Energy Agency, PWC, NAS, the Royal Society, etc. Of course the Journal would attack the series in editorials, which will help it get more attention” (WikiLeaks, 2015).

This here shows some of the stories of the man in the past, Rex Tillerson who has apparently massive faith in fracking and negotiation with Putin for the business he was running ExxonMobile. The WikiLeaks stories are special in themselves, but there other lost tales that needs to show the character of the man.

Like the Kurdistan adventure:

“Exxon Mobil Chief Executive Rex Tillerson refused Tuesday to answer questions about a controversial deal the oil company has signed with the Kurdish government in northern Iraq” (…) “Exxon, (XOM, Fortune 500) which holds big contracts with the Iraqi government to develop oil fields in the southern part of the country, was sharply criticized by Iraqi government ministers last month over the deal. The Iraqis suggested Exxon might be sanctioned over the move, possibly putting their deals in the southern part of the country in jeopardy” (…) “Iraqis in Baghdad are loathe to see oil companies sign separate deals with the semi-autonomous government in the Kurdish north, preferring instead that all deals go though the central government” (Hargreaves, 2011). So the next Secretary of State is ruthless in trade for fortunes that he picked deals with Kurdistan government over the Southern Iraqi Central Government that counters the diplomatic way that the governments do with Iraq. So Rex Tillerman could surely do the same in charge of the State Department under the Trump Administration.

pipeline

Here is a story in the inner workings in Chad:

“There was Exxon’s meddling in a 2006 standoff between Idriss Déby, the authoritarian leader of Chad — a Central African country with rich oil reserves — and Paul Wolfowitz, then the leader of the World Bank. Déby wanted weapons to fight rebels supported by nearby Sudan, but good-governance clauses in loans Chad had received from the World Bank restricted the country’s ability to purchase arms. Wolfowitz was ready to freeze some of Sudan’s bank accounts, prompting Déby to threaten to effectively kick Exxon out of Chad. That could have cost the company billions of dollars. So Exxon lobbied the U.S. ambassador to Chad to fix the problem, which led to Déby getting his weapons and Exxon its oil” (…) “By now ExxonMobil had made its own choice clear,” Coll writes. “It was more interested in the survival of Chad’s oil production than it was in the World Bank’s experiment in nation building.” (Walsh, 2012). So he would use World Bank loans to trade weapons to make sure that the ExxonMobil get the possibility to the Oil Reserves in Chad. That proves how far the man will go for profit, that the authoritarian leaders needs for arms can be meet, if he get the oil as long as he makes a killing.

Than you have the story of how he worked in Guyana:

“US oil giant ExxonMobil made waves in Guyana last Thursday by announcing it had confirmed a “world-class discovery” of oil offshore. The company said results from its exploration well in the Stabroek block, about 120 miles (193 kilometres) offshore Guyana, found between 800 million and 1.4 billion oil-equivalent barrels” (…) “The waters around Guyana are largely unexplored. According to a Forbes story quoting Exxon CEO Rex Tillerson, the 3-D seismic survey that Exxon conducted in the area was its largest in history — “the equivalent of 1,400 Gulf of Mexico blocks” (…) “In November 2015, Guyana’s government faced accusations that the state didn’t have the capacity to independently monitor ExxonMobil’s compliance with environmental regulations. The worry arose after it was alleged that ExxonMobil was promoting and funding climate change denials” (Abdelwahab, 2016).

So now that he is peculiar connected into the oil developments outside Guyana, as it was profitable for the company without considering the environment of the ocean and the sea as the we’re even paying climate change deniers in Guyana. That the billions of barrel is more important that the effect that oil drilling will have on the nation.

This from the guy that are key part of the former Standard Oil companies that we’re re-merged from Exxon and Mobil Oil Companies, that we’re too powerful in the United States. The US Company now are now so big Multi-National that they can secure the World Bank to fund Chad Government loans so they can buy weapons, and exchange give possible oil fields to the ExxonMobil. If that doesn’t say anything nothing does. This sort of fellow will now run the Secretary of State, not to talk about the Foreign Affairs of the United States. The diplomatic correspondence and according to due procedure of the Trump Administration; that will be interesting as the CEO Tillerman has been focused on profits and not on anything else. We can wonder what will be his Modus Operandi as a Secretary of State, what his policies and foreign affairs chief under Trump. Peace.

Reference:

Abdelwahab, Alex – ‘ExxonMobil’s significant oil find off Guyana leads to questions about the country’s future’ (05.07.2016) link: http://www.caribbeannewsnow.com/headline-ExxonMobil’s-significant-oil-find-off-Guyana-leads-to-questions-about-the-country’s-future-30969.html

Bartiriromo, Maria – ‘ExxonMobil CEO: Open more federal land for oil and gas’ (18.04.2011) link: http://usatoday30.usatoday.com/money/companies/management/bartiromo/2011-04-18-bartiromo-rex-tillerson-exxonmobil.htm

Hargreaves, Steve – ‘Exxon silent on controversial Iraq oil deal’ (06.12.2011) link: http://money.cnn.com/2011/12/06/news/international/Exxon_Iraq_oil_deal/

Walsh, Bryan – ‘Inside the Death Star — Also Known as Exxon’ (01.05.2012) link: http://content.time.com/time/health/article/0,8599,2113546,00.html

Wikileaks –‘KAZAKHSTAN: ALL SIDES SMILING WITH KASHAGAN DEAL’ (18.01.2008) link: https://wikileaks.org/plusd/cables/08ASTANA91_a.html

WikiLeaks – ‘FAJA NEGOTIATIONS: NO NEWS IS BAD NEWS’ (25.05.2007) link: https://wikileaks.org/plusd/cables/07CARACAS1030_a.html

WikiLeaks – ‘KAZAKHSTAN/CYPRUS/UK – Programme summary of Kazakh Khabar TV “Zhanalyqtar” news 1400 gmt 21 Sep 11’ (21.09.2011) link: https://wikileaks.org/gifiles/docs/71/711052_kazakhstan-cyprus-uk-programme-summary-of-kazakh-khabar-tv.html

WikiLeaks – ‘RUSSIA/FORMER SOVIET UNION-Exxonmobil Hails Russian Government Efforts to Improve Tax System’ (31.08.2011) link: https://wikileaks.org/gifiles/docs/25/2574477_russia-former-soviet-union-exxonmobil-hails-russian.html

WikiLeaks – ‘Murdoch climate campaign’ (19.02.2015) link: https://wikileaks.org/podesta-emails/emailid/27241

WikiLeaks – ‘Re: FRACK – W.Va. eyes fluid disclosure; quote from Lachelt’ (09.03.2010) link: https://wikileaks.org/gifiles/docs/38/386876_re-frack-w-va-eyes-fluid-disclosure-quote-from-lachelt-.html

WikiLeaks – ‘RUSSIA/CANADA/MEXICO – Russia’s oil firm signs partnership deal with ExxonMobil’ (02.09.2011) link: https://wikileaks.org/gifiles/docs/70/705223_russia-canada-mexico-russia-s-oil-firm-signs-partnership.html

Uganda’s Growth in the Era of Oil and Volatility (Youtube-Clip)

“Despite the slump in global oil prices, the start of commercial oil production in Uganda in 2018 offers long-term prospects to diversify the country’s economy and catapult it to upper middle income status in 30 years, according to the country’s new economic memorandum” (World Bank, 2016).

EU Delegations are headless chickens; sorry let me be correct: They are White Zombies with no Character as they are reaffirming their relationship with Uganda!

EU EOM Press conferance

Sometimes I wish I was naïve, blond-dumb and totally stupid. Sometimes I wish I did grasp the movements in politics and was not allergic to bullshit; not that it is shocking that the European Union walking away from Museveni because of ICC statement from Museveni. While they are still wishing to have a cordial cooperation between the Europeans and Ugandan Government, as that what they said today in the Chimps Reports. That was a sad read… and silence hit the room!

The white zombies said this to Ugandan Press:

““In response to press reports, the EU Delegation wishes to put on record that the EU Head of Delegation attended the 12 May inauguration of H.E. President Yoweri Kaguta Museveni, and was honoured to witness the full swearing-in ceremony with other invited guests” (…)”The EU Head of Delegation left the ceremony after the official swearing-in, due to the observed non-cooperation with the International Criminal Court, and for that reason only” (…)”The EU Delegation takes this opportunity to reaffirm its close partnership with the Government and people of the Republic of Uganda” (Mugume, 2016).

Total rig Uganda

Well, the short term memory of these European diplomates who either works directly for Total E&P who is steady waiting for the suspended case at the International Centre for Settlement and Investment Disputes under the World Bank, as it was suspended recently; latest was that the case was suspended and will be considered again when all parties are savvy and that happens on the 18th August 2016; if not when Hon. What’s His Face is selected by President Museveni to run the Ministry of Energy and Mineral Development. But that is then, and must be the priority of having a cordial relationship with Uganda.

As they have all forgotten what the European Union Election Observers Mission found out and should have shunned the Swearing-In ceremony if any of the words in the report was worth typing:

“Vital electoral reforms did not take place prior to the 2016 elections. Proposed amendments to the electoral legislation, compiled under the ‘Uganda Citizens Compact’, aimed at enabling the conduct of democratic elections, including to increase transparency in the appointment of the EC’s members, to restore presidential term limits and to improve parties’ financial accountability, were disregarded by the executive. Consequently, the legal framework contains gaps and ambiguities and therefore, in several instances, falls short of international principles for holding genuine democratic election” (…)”While legislation contains provisions on reporting and disclosure of political finance, these are neither followed by parties and candidates, nor enforced by the EC. This lack of transparency weakens the credibility of the elections” (…) “Consequently, the legal framework contains gaps and ambiguities and therefore, in several instances, falls short of international principles for holding genuine democratic elections” (EU EOM, 2016).

Uganda-Inauguration-1205122016_w540

So, the works of Eduardo Kukan seems to be in vain or only done so he could get a Splash and write a report, while the European Diplomates could go back to busy as normal, only with scrutiny of the ICC comment and trying to leave the election behind. As they now are wanting to this and forgetting their own credible and just had an election that falls short of international principles for holding genuine democratic elections; but that is not important for the European diplomates, because February 2016, is so far away from May 2016. It’s like a life-time in European time and in diplomatic pressure time, as it is such a fuzz to ask for justice and credible elections when you are a donor country and giving aid to the Government of Uganda. It is like President Museveni is right, foreign diplomates and Western diplomates doesn’t have heart to really do scrutiny, unless it is LGBTQ or they we’re detaining white journalists.

These White Zombies who are in it to win it, even if faking it to make it or something like that. What the European Union gains at the moment except for being hypocrites and short-term memory and not having any character, other than weak as sass. Soulless bastards from Europe with no swag and honor of fellow brethren and just throwing the works of even other EU personnel who made time and effort to scrutinize the whole affair of an election and you show up, to the man who held not a genuine election and lack of transparency to reaffirm you partnership with that guy. Are you serious, where do you European Union diplomates stand? Either you are dancing on sea-waves smoking some pot in a shisha or your totally dead-inside, henceforth a Zombie diplomat with no character as you are only there for business of the European nations and not to really stand for anything politically. As the walking away is not really doing anything then looking like kids who didn’t get to play with the cool-kids at the birthday-party; so congrats European Diplomates, you have yet again done a splendid job in Uganda.

Declartion President M7 20.02.2015 P2

 

President Museveni of his Seventh Term looks through you, I a pundit shoots you down and others are calling it theatrics and a stunt with no real value; which I hate to say is true as weak tea need a load of sugar to be tolerable to drink. Time for the European Union to either step-on or step-off as they can’t one day say that the Government of Uganda is cheating their elections, then weeks after wanting to reaffirm relationship with that cheating government; that is not real and shows that the EU Diplomates are only empty suits, zombies with no values and could easily be changed with some Boris Johnson assholes or another numbskull from Amsterdam instead of the ones that are parts of the EU Delegation to Uganda. As these men does not care about European Union Election Observers Mission and cares more about certain known values, as they are funding AMISOM and other missions that Ugandan Government carries out, so that EU doesn’t need to send armies to certain areas on the African continent. Why can’t these Zombies just say that, instead of acting so porous and wage, like cracker on the end of the table instead of hard as rock; they could act as men, but that is not diplomatic in the eyes of the European Union, I guess? Peace.    

Reference:

Mugume, Paul – ‘EU Publicly Recognises Museveni Election’ (19.05.2016) link: http://www.chimpreports.com/eu-publicly-recognises-museveni-election/

European Union Election Observation Mission – ‘Uganda Presidential, Parliamentary and Local Council Elections, 18 February 2016’ (April 2016)

The Thirteen Day of Presidential Rallies in Uganda + New Pledges from the Government..

Janet M7 in Mbarara 21.11.15

Today has been a good day a Saturday with quotes and actions from the trails. There been some serious hazard of actions from the ruling party of NRM. But hat is understandable, that is the only thing they know. That’s why the others have to campaign with defiance and strength to overcome the ruling party. There is heavy campaigning. Though not reports from them all. Like the smaller candidates.

I got the most notable from the trio of Yoweri Kaguta Museveni, Dr. Kizza Besigye and Amama Mbabazi. Not squat on the rest today.  

Erias Lukwago: “It’s now interesting that 95% of KCCA NRM councilors have not returned at the primaries”.

NRM vice chairperson eastern region Capt. Micheal Mukula said this recently: “Jinja town will never be granted a city status while still in the hands of the opposition”.

Ibrahim Nganda Ssemujju – “I have a feeling that if Kayihura doesn’t like you; you may not be announced winner”.

Dr. Kizza Besigye on the trail: “We spent $760m to buy 6 fighter jets. We can get $360m to buy laptop for secondary students”.

Gen. Mugisha Muntu: “I don’t understand why the most marginalized districts overwhelmingly vote for NRM”.

Olara Otunu: “Museveni has used the dived and rule policy”.

Amama Mbarara 21.11.15

In Mbarara where Go-Forward and Amama Mbabazi are having an rally later today on this Saturday. The Police wasn’t happy about that so they has jailed two hundred (200) boda-boda drives, motorcycle taxis, so that there would be less transport from town to the venue where the former PM where holding his Presidential Rally later today. Also the day before the Campaign rally of Amama Mbabazi their posters was taken down and changed for the NRM-Posters. Surely this is clean business as usual for the NRM-Regime. After the rally and little or no pay from the promised chiefs to shun the Go-Forward Rally; they have no been running and chasing the local RDC Office “demanding payment for their service”.

M7 21.11.15

While in Kakyeka at the Total there the ones who was travelling and refueling their motorcycles was paid by the NRM for fuel, but many just entered the Total with NRM-posters, but when they left the Gas-Station they just threw the NRM-Poster away.

In Bushenyi there been groups and teams who has had their duty to take down campaign material and posters of Go-Forward and Amama Mbabazi posters in the town. They have even been caught on tape explaining the plans on how to do so. And that is fair game?

In Mitooma District NRM Supporters was disrupting the event and venue for the Go-Forward and Amama Mbabazi. That was because this district was a Museveni District.

Next weeks planned Presidential Rally for the Go-Forward team at the Lira Golf Grounds. They have now been sealed down with Iron sheets. So that when the other candidates will have a venue in town they have to arrange it at smaller spots like Mayors Ground.

Bududa Manafwa KB 21.11.15

In Bududa there were 104 NRM members who deflected after the rally to the FDC camp.

Letter from Go-Forward to ICC:

ICC Amama P1ICC Amama P2

UPC Drama:

UPC leaders in Acholi have shunned the Jimmy Akena over the NRM agreement and alliance.

Bududa/Manafwa (Mwanyaala Naabi):

The health services system under FDC led Government will consider the citizen as the central focus and include a complete package: treatment, diagnosis, prevention, education, research and outreach. It must take into account the unique roles of women and the burden they shoulder in caring for the sick in our households and community. ‪#‎WesigeBesigye

Dr. Kizza Besigye Quote Outspend

Some Government letters: 

Security Requirements 201115 P1Security Requirements 201115 P2

One More:

Provision Hoes 20.11.15

A little more:

Hepatitis Ug 2015 P1Hepatitis Ug 2015 P2

Aftermath:

So there we go; another day done and the trail continue at high speed. The Police is very active still and showing its face yet again. For those who wondered if the police would be a part of this election? They are and the one interesting are the reactions to the deal between NRM and UPC. How the leaders of UPC respond. Hope you enjoyed. There will be more to follow. We have the rest of November, December, January and parts of February. There will be more and more actions from the ones involved. It is just a matter of time before the Public Order Management Act gets into action! Peace.

Press release: Uganda announces first Petroleum Exporation Liscensing Round (24.02.2015)

UgandaOilUgandaOil2

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