Group items tagged

Now that the Emiratis have broken the ice, opportunities for Arab-Israeli energy deals are broad and lucrative, ranging from investment in the Israeli pipeline itself, to adapting it for carrying natural gas or connecting it to pipelines across Saudi Arabia and the wider Middle East

Just over 60 years ago when it was built, the Eilat-Ashkelon pipeline was a massive national construction project aimed at guaranteeing Israel’s and Europe’s energy supplies in the wake of the 1956 Suez crisis

Most of the oil flowing through the pipeline came from Iran, which had close but discreet relations with Israel for decades under Shah Mohammad Reza Pahlavi. In 1968, the Israeli and Iranian governments registered what was then called the Eilat-Ashkelon Pipeline Co. as a 50-50 joint venture to manage the export of Iranian crude through Israeli territory and onward by tanker to Europe

A Swiss court ordered Israel in 2015 to pay Iran compensation of about $1.1 billion as a share of profits from the joint ownership of the pipeline since the two enemies broke off relations in 1979, but Israel has refused to pay up.

While the company’s main 42-inch pipeline was built to transport Iranian oil north to the Mediterranean, it now does most of its business in reverse. It can pump oil unloaded in Ashkelon from ships sent by producers such as Azerbaijan and Kazakhstan to tankers in the Gulf of Aqaba for transport to China, South Korea, or elsewhere in Asia

The pipeline’s advantage over the Suez is the ability of the terminals in Ashkelon and Eilat to accommodate the giant supertankers that dominate oil shipping today, but are too big to fit through the canal. Known in oilspeak as VLCCs, or very large crude carriers, the ships can transport as much as 2 million barrels of petroleum. The 150-year-old Suez Canal, on the other hand, is only deep and wide enough to handle so-called Suezmax vessels, with just half the capacity of a VLCC

The company’s business has always been one of Israel’s most closely guarded secrets. Even today, EAPC releases no financial statements. Levi says he can’t disclose the names of customers—though he says they include “some of the biggest companies in the world.” What little information that is publicly known only came to light as the result of legal battles following a 2014 rupture in the pipeline that caused the worst environmental disaster in Israeli history, spilling more than 1.3 million gallons of crude oil into the Ein Evrona desert nature preserve.

The boycott enforced by Saudi Arabia, the UAE, and their oil-producing neighbors meant that tankers acknowledging their docking in Israel would be barred from future loadings in the Persian Gulf, effectively destroying their business. The details are highly confidential—but generally the ways ships can obscure their activities include turning off their transponders, repainting, reflagging, reregistering, and faking their docking records.

EAPC’s business model improves dramatically with the erosion of the Arab boycott. “If the concerns [with secrecy] go down significantly, the price will drop significantly,”

Saudi Arabia has indicated it won’t establish formal links until the Palestinian conflict is resolved, although its business connections with Israel are plentiful and growing

Because of the canal’s limitations, much of the Gulf crude bound for Europe and North America gets pumped through Egypt’s Suez-Mediterranean Pipeline, in which Saudi Arabia and the UAE hold a stake. Egypt’s pipeline, however, operates in only one direction, making it less useful than its Israeli competitor, which can also handle, for example, Russian or Azerbaijani oil heading to Asia.

Even more possibilities arise from Israel’s discovery of a bounty of natural gas deposits off its Mediterranean coast that can supply far more than Israel’s own needs. Bringing in Gulf investors in addition to Israel’s current partners such as Chevron, and the possibility of connecting to the Middle East’s gas pipeline grid, would open yet another new horizon for Israel’s nascent energy industry.

even with the creation of the new organization and increased energy exploration, the Eastern Mediterranean has a long way to go to truly become the kind of energy hub that many in the region and even in Brussels hope to see. The European Union’s top energy official, for instance, has repeatedly pointed to the Eastern Mediterranean’s potential as an alternative source of energy to importing gas from Russia, and Egypt dreams of again becoming an exporter of natural gas to Europe, as it was until 2012

grandiose plans, such as a pipeline snaking across to southern Europe via Crete, keep colliding with political and economic realities. Deep waters and high costs make building a pipeline to Europe an expensive proposition

Another option to market the gas would be to build liquefied natural gas (LNG) terminals; liquefied gas can be shipped on tankers around the world. But the problem, aside from the upfront cost of building the expensive infrastructure needed to superchill natural gas, is the economics of the gas trade, especially when it comes to competing with Russian energy supplies to Europe. LNG costs a lot more than natural gas shipped through a pipeline, and Russian gas is especially cheap.

Europe’s dependence on Russian energy is growing,

Tapping its own natural gas fields would enable Cyprus to replace costly energy imports and power its economy. Israel has already turned its first offshore gas discoveries into a new, cleaner source of electricity, and the country hopes to phase out coal entirely over the next decade. Egypt, too, is using domestic natural gas resources to keep the lights on and factories running, and natural gas demand there is expected to keep growing and potentially gobble up whatever is produced by additional offshore discoveries.

Retired Turkish rear admiral Deniz Kutluk told MEE that Blue Motherland’s main aim was to show the real capabilities of Turkey's navy for deterrence, rather than sending messages to any neighbouring country. “There was this outside perception that the Turkish navy has been undermined by domestic shocks," he said.  "Senior commanders seem to understand this misperception. That’s why they wanted to reveal to the world that the Turkish navy is capable of simultaneously fighting in three seas surrounding Turkey.”

the drills come a week after Foreign Minister Mevlut Cavusoglu declared that Turkey would in coming days send two ships to the waters near Cyprus to begin exploring for oil and gas

Nothing at all can be done in the Mediterranean without Turkey, we will not allow that

Last November, Greece, Italy and Cyprus signed a $7bn deal with Israel to lay a pipeline and purchase Israeli natural gas, which will eventually reach wider European markets.

Necdet Ozcelik, an independent security analyst who served as an operations sergeant in the Turkish special forces, told MEE that Blue Motherland was being used to demonstrate that Turkey could provide energy security and act as a transit hub for resources in the region. “The competition in eastern Mediterranean for energy resources will be increasingly under the spotlight as the Syrian crisis comes to an end," he said. 

It is well known that Jordan has suffered a lot from the blockage of Egyptian natural gas supply through the Arab gas pipeline, as a result of the constant bombing of the pumping station of al-Arish during the past few years

In the Iran-Iraq War in the 1980s, both sides targeted each others’ oil exports, leading to the so-called “tanker war,” which over nearly a decade saw more than 200 oil tankers attacked and more than 50 sunk or seriously damaged. By the waning years of the conflict, U.S. forces began escorting oil tankers through the Persian Gulf to ensure the free flow of oil. There, the risk of Iranian mines was made apparent, with a mine severely damaging a U.S. frigate. And as the British Navy learned in the 1915 Gallipoli campaign, in restricted waters, mines can hammer capital ships, and mine clearance can take an agonizingly long time.

“While Iran’s asymmetric assets do not provide it with the ability to win a major direct conflict with US forces, the coordinated, simultaneous use of Iran’s submarines, anti-ship cruise missiles (ASCMs), fast-attack craft, and swarm tactics in a first strike could inflict costly losses on US naval forces and commercial shipping in the Strait,” concluded Anthony Cordesman of the Center for Strategic and International Studies in an exhaustive study. “These assets and tactics, in combination with Iran’s large arsenal of naval mines, likely render Iran capable of closing the Gulf for a short while.”

Saudi leaders likely hope that Sultan Haitham will be more amenable to a Saudi-led Gulf, and without U.S. support, Oman may feel pressure to acquiesce or face potential repercussions. Omani officials have privately expressed concerns that Oman could be the next target of a Saudi- and Emirati-led blockade

Despite precipitating the world’s most urgent humanitarian crisis in Yemen, Saudi Arabia has used its military presence there to declare its intention to build a pipeline through the Mahra region and construct an oil port on the Yemeni coast. Saudi Arabia currently ships oil through the Strait of Hormuz and the Bab el-Mandeb strait, whereas the proposed pipeline would allow direct access to the Indian Ocean.

Mahra has close links to the adjacent Dhofar region of Oman, which has long viewed the province as an informal buffer from the instability in other parts of Yemen. Sultan Qaboos offered aid as well as dual citizenship to residents of Mahra as a means of eliminating the potential for another conflict resembling the Dhofar War of 1963-1976, which drew cross-border support from the People’s Democratic Republic of Yemen operating from Mahra into Dhofar

Inhabitants of Mahra have expressed frustration with the presence of both the Saudis and Emiratis, given that these kingdoms’ alleged foes—the Houthis as well as al Qaeda in the Arabian Peninsula—are not present in Mahra

The UAE has taken control of the Yemeni island of Socotra, building a military base in a unique ecosystem nominally protected by UNESCO. The UAE is also building bases in Eritrea and Somaliland as part of a plan to develop a “string of ports” that will allow it to project power and escape possible pressure from Iran in the Persian Gulf.

Other Emirati ambitions include the Musandam Peninsula, an Omani enclave that forms the narrowest point in the Strait of Hormuz. The inhabitants of the peninsula have close ties to the UAE, as Musandam connects geographically to the emirates of Ras al-Khaimah and Fujairah, rather than Oman. Oman’s control of the strategic chokepoint reflects the sultanate’s history as an empire whose territory once stretched from southern Pakistan to Zanzibar. 

The border between Oman and the UAE was only formally demarcated in 2008, but Omanis see a circle of potential threats arising from Emirati activity in or possible designs on Musandam, Mahra, and Socotra.

the UAE may feel that Oman’s new sultan may be more receptive to alignment with Emirati objectives than his predecessor

Oman has failed to significantly diversify its economy

As in many oil-dependent economies, unemployment is high, especially among young people

During the popular uprising of 2011, which brought thousands of Omanis to the street for the first time, the government used its nest egg to pay for a massive expansion of the government payroll.

there are no available resources to try to finance a transition away from oil, and the low price of oil has further impeded the government’s efforts to meet its obligations

could reflect a sea change in the UAE’s power projection tactics on the Red Sea and the Horn of Africa. On the surface, it appears as if the UAE is retrenching from the region. In October 2019, the UAE officially withdrew its military presence from Aden, and on Feb. 18, the UAE dismantled its base in Assab, Eritrea, which assisted its military intervention in southern Yemen.

UAE is reorienting its Red Sea strategy away from direct military intervention and toward a synthesis of economic investment and remote power projection. The UAE’s transition from a security-premised to economy-focused strategy in Somaliland, which was illustrated by Abu Dhabi’s September 2019 conversion of its proposed military base in Berbera into a civilian airport, was a critical dimension of its strategic reorientation. The UAE’s expanded economic footprint in Somaliland, which will result from Naqbi’s appointment, is complemented by its prospective construction of an Ethiopia-Eritrea oil pipeline and provisions over $200 million to Sudan’s agriculture sector.

UAE is also quietly consolidating a sphere of influence around the Bab el-Mandeb Strait

If the UAE’s closer economic cooperation with Somaliland extends to the security sphere, as Gabobe postulates, Abu Dhabi will be able to expand its maritime security role in this region, even though it is not part of the formal Red Sea coalition established in January 2020.

The UAE’s expanded influence in Somaliland will sharpen its rivalries with Turkey and Qatar in the Horn of Africa and complement its residual network of Southern Transitional Council-aligned militias in southern Yemen.

Police described the airport fire as “minor” and said it took place at an extension of the international airport that is still under construction

Police said the other blast struck three petroleum transport tankers near a storage facility for the Abu Dhabi National Oil Co. in the Musaffah area. The neighborhood, 22 kilometers (13 miles) from the center of Abu Dhabi city, also has an oil pipeline network and 36 storage tanks, from which transport trucks carry fuel nationwide.

Yemen’s government-aligned forces, aided by the UAE-backed Giants Brigades and with help from Saudi airstrikes, reclaimed the entire southern province of Shabwa from the Houthis earlier this month and made advances in nearby Marib province.

South Korea’s President Moon Jae-in visits the UAE. During the president’s meeting with Emirati Prime Minister and Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum on Sunday, the two countries reportedly reached a preliminary deal valued at some $3.5 billion sell mid-range South Korean surface-to-air missiles to the UAE.

The Houthis have used bomb-laden drones to launch crude and imprecise attacks aimed at Saudi Arabia and the UAE over the course of the war. The group has also launched missiles at Saudi airports, oil facilities and pipelines, as well as used booby-trapped boats for attacks in key shipping routes.

The war has killed 130,000 people in Yemen - both civilians and fighters - and has exacerbated hunger and famine across the impoverished country

while suspicion likely would fall on the Houthis, Iraqi-based militias also have threatened the Emiratis with attacks

“The attack is another reminder of the highly complex missile and drone threat faced by the UAE and the region’s other main oil producers,”

government mishandling could be exploited by those who seek to use the street rather than the ballot box as the means towards addressing their political grievances

if this is indeed a more significant challenge to the entire system will become clearer this Friday when protests are sure to erupt in earnest

The Syrian civil war, however, has put Russia’s relations with the West, Turkey, the Gulf States, and Israel to a serious test

Unlike Europeans and Americans, Russian officials did not expect Western-style democracy to follow secular authoritarianism: What they began to brace for, early on, was a great Islamist revolution engulfing the entire region

In the hope of getting Western support for the Russian economic modernization agenda, Moscow decided in 2011 not to stand in the way of a humanitarian intervention in Libya. It was soon bitterly disappointed, however, when the no-fly zone in Benghazi morphed into a regime change in Tripoli. The experience of being used and then ignored by the West has informed Russia’s subsequent stance on Syria

From Moscow’s perspective, Assad may be problematic insofar as his methods are concerned—but his enemies constitute a real threat not just to Syria, but also to other countries, including Russia

Russia’s image has suffered in many parts of the Arab world, where it is portrayed as a friend of authoritarian regimes and as an ally of and arms supplier to Bashar al-Assad and therefore as a friend of Iran

The amount of heavy lifting required from both Washington and Moscow is stunning, and the odds are heavily against success at the new Geneva conference next month, but the alternative to a political settlement is truly frightening. One obstacle is that Russia has insisted in involving Iran in Syria-related discussions, to which the Gulf Arabs and the United States strongly object. Moscow is frequently referred to as Tehran’s ally and advocate. Indeed, Russia has built a nuclear power reactor in Bushehr and has supplied Iran with a range of weapons systems. Russia, for its part, sees Iran as not so much a theocracy bent on developing nuclear weapons to terrorize the region as a power that has been in the region forever and that is likely to play a more important role in the future.

the Iranian theocracy has more checks and balances than the old Soviet system

Tehran, they think, is probably aiming for an outcome in which it stops at a relatively small step before reaching a nuclear capability and trades its restraint in exchange for dropping all sanctions against it and respect for its security interests

According to U.S. diplomats, Moscow cooperates more with Washington on Iran than it is usually given credit for in the mainstream Western media. Unlike many in the United States, however, Russians believe that pressuring Iran has limits of usefulness: Beyond a certain point, it becomes counterproductive, undercutting the pragmatists and empowering the bad guys that one seeks to isolate

Russia’s attitudes toward Israel are overwhelmingly positive. Many Russians admire the social and economic accomplishments of the Jewish state and its technological and military prowess. Intense human contacts under conditions of a visa-free regime and the lack of a language barrier with a significant portion of Israel’s population help enormously

Putin knows that denying or withdrawing air-defense cover is the ultimate argument he needs to hold in reserve to make Assad buy into a real power-sharing deal

Moscow is beginning to step out of its post-Soviet self-absorption. Its main preoccupation is with security—and Islamist extremism features as a primary threat. This is a big issue. By contrast, Russia’s interests in the Middle East are relatively modest. They are centered on oil and gas exploration deals, pipeline geopolitics, and pricing arrangements; other energy opportunities beckon in the nuclear area. While Russia’s position in the regional arms bazaar has suffered in the last decade as a result of developments in Iraq and Libya (and may yet suffer more in Syria), Moscow is clearly determined to stay in the arms business. Finally, as Russia recasts itself as a defender of traditional Christian values as well as a land of moderate Islam, it is discovering a range of humanitarian causes in the birthplace of both global religions.

In the energy sector, Russia has accommodated to Turkey’s new role of a regional energy hub but has worked hard to protect its own share of the European Union’s natural gas market

Every Libyan city, big and small, is by now accustomed to blackouts during certain hours almost every day of the week. The situation in recent months, however, has become unbearable, with the blackouts becoming longer and less predictable, making it difficult for hospitals and individuals with special needs to cope and carry out their daily routines. Some people have bought generators for personal use during blackouts, but the majority of people cannot afford them and access to cash through the banking system is severely restricted due to the banks' chronic liquidity problems.

Power cuts coupled with economic difficulties are exacerbating the fragility of the UN-backed Government of National Accord, which has little authority over the country, including Tripoli, where it is seated. It has been little more than a year since the Libyan Political Agreement was signed in Morocco on December 15, 2015, and nearly a year since the government it established installed itself in Tripoli. Little, however, has changed for the better in terms of daily life. In fact, the security situation and economic situation, including rising prices and lack of access to cash, are getting worse.

The issue of who controls what, however, is a tricky one. While certain pairs of states have worked out bilateral treaties dividing the sea between themselves, some boundaries -- most notably those involving Iran -- remain vague. In addition, the legality of building a "Trans-Caspian Pipeline" under the sea (as Turkmenistan would like to do, to ship natural gas through Azerbaijan and onward to Europe) is unclear, and both Russia and Iran oppose the project

"The military-political situation in the region is extremely unpredictable. This is explained on one side by the unregulated status of the sea, and from the other, the aspirations of several non-Caspian states to infiltrate the region and its oil and gas," the Russian magazine National Defense, in a not-so-oblique reference to the United States and Europe, wrote in a special report this year on the Caspian naval buildup. "In these conditions Russia is compelled to look after the security of its citizens and the defense of the interests of the Caspian countries."

Iran has built up its navy on the Caspian from nearly nothing during the Soviet era to a force of close to 100 missile boats, two of which are equipped with Chinese C-802 anti-ship missiles. And Tehran has announced that it's building a "destroyer," which will become the largest ship in its Caspian fleet (though probably closer to a corvette by international standards).

"If someone is too safe, no one is safe."

a classic case of the security dilemma

the firepower and the geopolitical tension on the sea are still low enough that the Caspian is far from "flashpoint" status. But the trend is moving in a dangerous direction. The five countries on the Caspian are all so opaque about their intentions that there is plenty of room for miscalculation, leading to a disastrous conflict that no state truly wants. It is also particularly ironic because  all the governments officially call for demilitarization of the Caspian. Most of the countries justify their Caspian naval buildups in light of this rhetoric by citing a threat from terrorists or piracy -- though there has been nearly no indication of either the intent or ability of terrorists to attack

All of the post-Soviet states mistrust Iran, especially Azerbaijan.

"Iranians think they are a besieged fortress," said a Baku naval analyst who asked not to be named. "The U.S. cooperation here is nothing special but they build conspiracy theories about it." Meanwhile, Azerbaijan's strong military relationship with Israel only adds to Iran's suspicions

Iran recently announced a huge new oil discovery in the Caspian, which Tehran says contains 10 billion barrels of oil. While Iran hasn't yet announced the exact location of the find, the information it has put out suggests that the discovery, according to regional analyst Alex Jackson, is in "what would reasonably be considered Azerbaijan's waters."

Ibrahim el-Meneey, a powerful Bedouin tribal elder who lives a few miles from the Israeli border, said that arrangement would be ideal, as long as the military sticks to guarding the road. The tribes, which have stockpiled everything from small arms to antiaircraft missiles, are doing a fine job of dealing with violent human smugglers, drug runners and other miscreants who have taken advantage of the security vacuum over the past year, he said. “Here, it’s all tribes,” Meneey said, sitting on a moonlit sandy patch outside his house, which is close enough to Israel that cell phones roam onto the country’s mobile networks. “Security is very stable.”

“The bedouin is a peaceful being,” Meneey said, sipping sweet tea. “But if he feels humiliated, he will never forget. The government has to work quickly to deliver justice.” If the Egyptian government fails to find the right approach to restore security and services, he said: “This could become like a second Afghanistan. It could become an international war.”

Sinai leaders say they have increasingly taken on tasks the state is not performing. Roughly six months ago, Hamdeen Abu Faisal, an Islamic scholar, became among the first in the region to set up informal tribunals that settle cases that would normally be the jurisdiction of local courts. “The people started to need someone to sort out their problems,” Faisal said. “There are no functioning courts, police stations or district attorneys.” The courts are not imposing corporal punishments, Faisal said, and are only arbitrating disputes among people who agree in writing to adhere to the decision of the scholars.

alien Western political, economic and even sociocultural constructs were superimposed on most of the inhabitants of these new countries

It took the United States more than 100 years to become a somewhat stable, prosperous country, and this was accomplished despite a horrific civil war but also while separated by oceans from much of the rest of the world — not on the doorstep of Europe endlessly fighting balance-of-power wars, — and sitting on highly coveted ground consisting of two-thirds of a new source of energy that would power the 20th century.

what kept these artificial creations together was the on-the-ground military presence of the British, French and eventually the Americans. And when one of these three was not present, military dictatorship filled the void that emerged from colonialism, political immaturity, imperialist machination and the lack of a national identity

events of the past decade in the post-Cold War world altered this equation. The military dictatorships have been removed or are under siege, first with the US-led ouster of Saddam Hussein in Iraq in 2003 and culminating with the events of the so-called Arab Spring of 2011. We seem to be witnessing much of the Levant returning to its constituent parts, where the nation-state as a unit of analysis may no longer be valid. Iraq is once again on the verge of breaking down following the removal of US troops.

We may be witness to a generation-long process that will remap much of the Middle East. Perhaps outside powers will once again intervene to enforce new borders. If they do, will they get it right this time? Perhaps the indigenous peoples will continue to write their own history … and their own borders. Maybe all of this is inevitable no matter what regional or international powers decide to do