Attack at Algeria Gas Plant Heralds New Risks for Energy Development



The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")


As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.



A map of disputed islands in the East and South China Seas.

Map by National Geographic



Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")


"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")


"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.


On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.


"A Hot Place to Drill"


The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.


Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.


Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.


Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.


"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."


This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.


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Sasha's View: 'Good Job, Daddy. You Didn't Mess Up'













President Barack Obama and Vice President Joe Biden today officially embarked on their second term, taking the Constitutionally mandated oath of office in two separate private ceremonies inside their homes.


Shortly before noon in the Blue Room of the White House, Obama raised his right hand, with his left on a family Bible, reciting the oath administrated by Chief Justice John Roberts. He was surrounded by immediate family members, including first lady Michelle Obama and daughters, Malia and Sasha.


As he hugged his wife and daughters, Sasha said, "Good job, Daddy."


"I did it," he said.


"You didn't mess up," she answered.


Biden was sworn in earlier today by Justice Sonia Sotomayor, the first Hispanic to administer a presidential oath, in a ceremony at his official residence at the U.S. Naval Observatory. He was joined by more than 120 guests, including cabinet members, extended family and his wife, Dr. Jill Biden.


Because Jan. 20 -- the official date for a new presidential term -- falls on a Sunday this year, organizers delayed by one day the traditional public inauguration ceremony and parade down Pennsylvania Avenue.








Vice President Joe Biden Sworn in for 2nd Term Watch Video











President Obama's 2nd Inauguration: Hundreds of Thousands to Attend Watch Video





Obama and Biden will each repeat the oath on Monday on the west front of the Capitol, surrounded by hundreds of dignitaries and members of Congress. An estimated 800,000 people are expected to gather on the National Mall to witness the moment and inaugural parade to follow.


The dual ceremonies in 2013 means Obama will become the second president in U.S. history to take the presidential oath four times. He was sworn in twice in 2008 out of an abundance of caution after Roberts flubbed the oath of office during the public administration. This year Roberts read from a script.


Franklin Roosevelt was also sworn in four times but, unlike Obama, he was elected four times.


This year will mark the seventh time a president has taken the oath on a Sunday and then again on Monday for ceremonial purposes. Reagan last took the oath on a Sunday in 1985.


Both Obama and Biden took the oath using a special family Bible. Obama used a text that belonged to Michelle Obama's grandmother LaVaughn Delores Robinson. Biden placed his hand on a 120-year-old book with a Celtic cross on the cover that has been passed down through Biden clan.


The official inaugural activities today also included moments of prayer and remembrance that marked the solemnity of the day.


Obama and Biden met at Arlington National Cemetery for a brief morning ceremony to place a wreath on the Tomb of the Unknowns, honoring military service members who served and sacrificed. The men stood shoulder to shoulder, bowing their heads as a bugler played "Taps."


Biden, who is Catholic, began the day with a private family mass at his residence. The president and first family attended church services at Metropolitan African Methodist Episcopal Church, a historically black church and site of two pre-inaugural prayer services for former President Bill Clinton and Vice President Al Gore and their families.


The Obamas and Bidens plan to participate in a church service on Monday morning at St. John's Episcopal, across Lafayette Park from the White House. They will also attend a National Prayer Service on Tuesday at the National Cathedral.


Later on Sunday evening, the newly-inaugurated leaders will attend a candlelight reception at the National Building Museum. The president and vice president are expected to deliver brief remarks to their supporters.






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For top donors, inauguration means access, influence and angling for next big job



For the thousands of high-end donors who pay for the whole thing, the inauguration is about exclusive access to the president and vice president, as well as what insiders call “placement.” (Jobs, they mean.) Goodness knows it’s not the big public balls that lure the visitors; by universal accord, those mega-parties are mostly letdowns — people you don’t know and don’t like, bars you’d need a crowbar to reach, bad food and not enough of it.


“They’ve already written their checks and now they come for the celebration,” said David Rosen, a Chicago Democratic fundraiser who serves as a fixer for wealthy donors on their inauguration trips, making certain their schedule is properly packed with the right parties and the most intimate VIP gatherings. “This weekend is a marker in their lives, so they want to be invited to the White House or the small gathering at the vice president’s house.”



President Obama’s second inauguration is smaller, less emotionally powerful and less transparent than the first. There are fewer balls, fewer tourists and fewer details about the money being raised. Four years ago, promising a new openness, the president banned corporate giving to the inauguration, limited gifts from individuals to $50,000 and released a full accounting of donations.

This year, the sky’s the limit on gifts, corporations are good people and the official roster of donors won’t include addresses or amounts for up to 90 days. The list includes companies such as AT&T, Microsoft and Southern Co., a utility that says it gave $100,000. Individual supporters include donors such as Irwin Jacobs, founder of the tech company Qualcomm, who had already given more than $2 million to groups supporting Obama.

Administration officials have said the loosened donation rules were designed to reach out to businesses whose executives felt spurned in the first term and to ease pressure on Democratic donors who feel squeezed dry after the campaign. After the inaugural celebration’s expenses are paid, the remaining money could be used for an Obama foundation that would support his presidential library and other projects after he leaves office.

“It is just the wrong thing to do,” said Fred Wertheimer, president of Democracy 21, a nonprofit group that pushes for transparency in government and campaign finance reform. “This is symbolic of doing business as usual in Washington, from an administration that has said it did not want to follow that path. It doesn’t make sense.”

Presidential Inaugural Committee spokesman Cameron French says that although it is taking corporate donations “to make sure we are able to meet our fundraising obligations” without burdening the public, it is not accepting gifts from political-action committees, lobbyists or firms that aren’t current on federal bailout loans from 2009. A committee statement says its “guidelines aren’t just consistent with the law — they are consistent with the president’s commitment to transparency and to reducing the influence of PACs and lobbyists in Washington.”

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Obama blames "terrorists" for Algeria hostage deaths






WASHINGTON: US President Barack Obama said on Saturday that blame for deaths stemming from a hostage crisis in Algeria lay with the "terrorists" who had earlier taken foreigners captive at a remote gas plant.

The remarks were the president's first direct comments about the protracted hostage crisis. His statement was released several hours after Algerian troops stormed the gas plant to end a situation that had began four days earlier.

"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," Obama said.

"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."

Obama said the attack by Al-Qaeda-linked gunmen at the In Amenas facility deep in the Sahara was a reminder of the threat posed by "Al-Qaeda and other violent extremist groups in North Africa."

The United States had been in constant contact with Algerian officials over the crisis, the president said.

"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," Obama added.

Twenty-one hostages died during the siege and 32 kidnappers were also killed, while special forces were able to free "685 Algerian workers and 107 foreigners," according to Algeria's Interior Ministry.

Among the dead were an unknown number of foreigners -- including from Britain, France, Romania and the United States -- and many were still unaccounted for, including Japanese.

In Saturday's assault, "the Algerian army took out 11 terrorists, and the terrorist group killed seven foreign hostages," state television said, without giving a breakdown of their nationalities.

A security official who spoke to AFP as army helicopters overflew the plant gave the same death tolls, adding it was believed the foreigners were executed "in retaliation".

- AFP/de



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Siddis plan a bash to celebrate Obama 2.0

MANGALORE: Gollehalli, 7 km from Haliyal town in Uttara Kannada, will reverberate to the beats of a special Siddi drum 'Dhamal' on Sunday, to mark the ascent of Barack Obama as US President for the second time in a row.

Disappointed with their earlier effort at not being able to send honey to Obama when he was elected to the White House for the first time, the Siddis this time will send him a letter wishing him success in his second term.

Diog Bastaon Siddi, president of the Large Agriculture Multipurpose Society run by Siddis, said: "We will remind Obama of our common ancestry and urge him to have closer ties with India. We will also remind him of our condition and seek his help for our social and economic uplift and progress."

Bureaucratic red tape had prevented the Siddis from sending hand-collected natural raw honey from the forests to Obama. "The then deputy commissioner had told us there were several restrictions in sending food items. So it wasn't sent,'' Diog said. Besides, Siddis are making special arrangements to celebrate Obama's swearing-in ceremony on Sunday. "We've organized a function where over 1,000 Siddis from different parts of Uttara Kannada and elsewhere will participate," said Diog.

The proudest moment for Siddis was when anti-apartheid campaigner Nelson Mandela reciprocated their wishes on him being set free from prison in South Africa after 27 years. "Mandela reciprocated our wishes and assured us he would visit us when he came to India," said Diog.

The day-long function on Sunday will commence with a cake-cutting ceremony, coupled with Dhamal (traditional Siddi) dances. The morning will be spent educating Siddis about their legal rights and various schemes available to them through the government. "The afternoon cultural function will set off the celebratory mood of dance and music," said Diog. "We've been assured by the US consulate authorities at Chennai that the letter will be sent to the US President,'' said a joyful Diog.

The Siddis, numbering around 25,000, belong to a tribe of African ancestry. They've basically been forest-dwellers spread over thickly-wooded mountainous terrains of Haliyal, Yellapur and Ankola taluks for centuries. According to historians, the Siddis reached India as slaves of invading armies who struck the Indian west coast.

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Attack at Algeria Gas Plant Heralds New Risks for Energy Development



The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")


As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.



A map of disputed islands in the East and South China Seas.

Map by National Geographic



Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")


"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")


"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.


On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.


"A Hot Place to Drill"


The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.


Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.


Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.


Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.


"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."


This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.


Read More..

Algeria Hostage Crisis Over, One American Dead













After the Algerian military's final assault on terrorists holding hostages at a gas complex, the four-day hostage crisis is over, but apparently with additional loss of life among the foreign hostages.


One American, Fred Buttaccio of Texas, has been confirmed dead by the U.S. State Department. Two more U.S. hostages remain unaccounted for, with growing concern among U.S. officials that they did not survive.


But another American, Mark Cobb of Corpus Christi, Texas is now confirmed as safe. Sources close to his family say Cobb, who is a senior manager of the facility, is safe and reportedly sent a text message " I'm alive."










Inside Algerian Hostage Crisis, One American Dead Watch Video









American Hostages Escape From Algeria Terrorists Watch Video





In a statement, President Obama said, "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. 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. ... This attack is another reminder of the threat posed by al Qaeda and other violent extremist groups in North Africa."


According to Algerian state media, 32 militants are dead and a total of 23 hostages perished during the four-day siege of the In Amenas facility in the Sahara. The Algerian Interior Ministry also says 107 foreign nationals who worked at the facility for BP and other firms were rescued or escaped from the al Qaeda-linked terrorists who took over the BP joint venture facility on Wednesday.


The Japanese government says it fears "very grave" news, with multiple casualties among the 10 Japanese citizens working at the In Amenas gas plant.


Five British nationals and one U.K. resident are either deceased or unaccounted for in the country, according to British Foreign Minister William Hague. Hague also said that the Algerians have reported that they are still trying to clear boobytraps from the site.




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Earl Smith is the man behind a military patch that President Obama prizes


That February morning in 2008 found Barack Obama decidedly out of sorts.


He was locked in one battle with Hillary Rodham Clinton for the Democratic nomination that showed no signs of ending — and another with a vicious cold that felt the same way.


As he rode the service elevator in the backway of a convention hotel here, the snowy-haired African American operating it turned suddenly. He held out a black-and-gold bit of fabric embroidered with a screaming eagle.

“Senator Obama, I have something I want to give you,” the man said. “I’ve carried this military patch with me every day for 40 years, and I want you to carry it, and it will keep you safe in your journey.” Obama tried to refuse, but the older man persisted.

Big endeavors can find their meaning in small moments.

Later that day, Obama and his aides discussed the encounter. The future president pulled the patch from his pocket, along with about a dozen other items people had pressed upon him.

“This is why I do this,” he said. “Because people have their hopes and dreams about what we can do together.”

Two American stories intersected that morning in that elevator. The more famous, of course, is the one that begins its next chapter on Monday, as the nation’s first black president takes the oath of office for a second term.

But the other story also tells a lot about where this country has been and how far it has come.

No one in Obama’s small party that day noticed the man’s name tag or, if anyone did, the fact that it said Earl Smith was quickly forgotten.

No one knew how much of Smith’s life had been woven into a patch that, over four decades, found its way from the shoulder of an Army private to the pocket of a future commander-in-chief.

It was the only shred of cloth he had saved from the uniform of a nightmarish year in Vietnam. Smith fired artillery with a brigade that suffered 10,041 casualties during the course of the war. The brigade’s soldiers received 13 Congressional Medals of Honor.

The patch was waiting among his possessions when Smith was pardoned by the state of Georgia in 1977 after spending three years in prison for a crime he claimed was self-defense.

Smith kept it close as his lucky charm while he rebuilt his life and his reputation, starting with a job vacuuming hallways and changing sheets in an Atlanta Marriott. He carried it with him as he traveled halfway around the world again, to positions in hotels far from home, Riyadh in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Along the way, as he tended to travelers and made sure VIP gatherings went smoothly, he met three U.S. presidents.

His instincts told him Obama would make it four.

Like just about anyone else who was alive on Nov. 22, 1963, Smith can describe exactly where he was when he heard the horrific news: He was coming off a high school football practice field in his home town of San Benito, Tex.

Though not yet old enough to have voted for the man slain in Dallas, “I was devastated — a lot of us young people were — because John Kennedy was the young president,” recalled Smith, now 68.

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Boeing suspends 787 Dreamliner deliveries






NEW YORK: US aerospace giant Boeing said late Friday it had suspended deliveries of its new 787 Dreamliner jet until a battery problem is resolved, but continues to build the plane.

"We will not deliver 787s until the FAA approves a means of compliance with their recent Airworthiness Directive concerning batteries and the approved approach has been implemented," a Boeing spokesman said in an email.

"Production of 787s continues," he said.

The Federal Aviation Administration on Wednesday ordered the grounding of US-operated 787s to address the battery problem after a damaged battery on an All Nippon Airways 787 forced an emergency landing.

The risk of fire from overheating power packs has emerged as a major concern for Boeing's cutting-edge new planes since the incident on the domestic flight in Japan, prompting airlines around the world to ground all 50 of the 787s in service.

- AFP/de



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Bangalore student commits suicide in Germany

BANGALORE: A Bangalore student enrolled in a post-graduate course in Siegen University, Germany, died under mysterious circumstances. While German authorities said it was a clear case of suicide, the youth's family expressed doubts about it.

The body of Likhith Shashidhar, 24, who was found hanging in his apartment in Kreuztal, allegedly by a computer cable tied around his neck on January 8, was brought to the city on Thursday night and cremated on Friday.

Likhith graduated from Jain Engineering College, Bangalore. After working for a couple of years here, he joined for the MS course in Mechatronics at Siegen University. He is survived by his parents and a younger sister.

His parents SV Shashidhara and Siddalingamma were told by German authorities on January 9 that their son had committed suicide. But papers accompanying the body were vague about the cause of death. A 'no-objection certificate for dead body clearance' issued by the Indian consulate in Frankfurt cited the death certificate and mentioned the cause of death as "unknown". Immigration authorities at the Bengaluru International Airport (BIA) ascribed the death to an "accident".

Likhith's family suspect Likhith's death was linked to alleged harassment meted out to him by his seniors. Siegen University authorities dismissed these charges as mere rumours and said Likhith was depressed.

Lekha, Likhith's younger sister and engineering student, told reporters her brother had told her that some seniors at the university had posted some of his pictures on Facebook and harassing him about it.

The family last spoke to Likhith on January 7. "He told me he was being harassed by his seniors and he was fed up. He said he wanted to return home. As he didn't seem too well, I called one of his roommates, also a Bangalorean from Yelahanka. He told me Likhith had been depressed for some time and promised he would talk to him. Then came the news of his death," said Siddalingamma, a school librarian.

On January 8, Siddalingamma got a missed call from Likhith. "Generally when he gave me a missed call, it meant he wanted me to log on to Skype. I was in school when I got the call. I got back home and found he wasn't online. A day earlier, he asked what we wanted from Germany. I can't understand why he committed suicide," she said.

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