From The Hindu frontpage
Saturday, Jan 28, 2006
U.S. tells India to back off Syria oil deal
NEW DELHI: Taking strong exception to India's recent decision to buy a Syrian oilfield in partnership with China, the United States has asked the Manmohan Singh Government to "reconsider" its proposed investment.
A demarche to this effect was made earlier this month and an aide memoire outlining Washington's objections handed over to the Ministry of External Affairs by senior diplomats here. In December last, ONGC Videsh Ltd (OVL) and the China National Petroleum Corporation (CNPC) teamed up to purchase a 37 per cent stake in the al-Furat oil and gas fields from Petro-Canada for $573 million.
The mature fields, jointly run by Shell, have proven reserves of 300 million barrels of oil equivalent. Indian officials consider the Syrian venture to be of enormous strategic significance, both for the value of the underlying assets and the role it will play in cementing the China-India partnership for acquiring oil and gas equities in third countries.
The U.S. aide memoire, a copy of which is in the possession of The Hindu, says: "The United States strongly opposes such investments in Syrian resources."
Pointing out that the United Nations Security Council unanimously passed two resolutions, UNSCR 1636 and 1644, "mandating complete cooperation by the government of Syria with the U.N.'s investigation into the assassination of former Lebanese Prime Minister Rafiq Hariri," the U.S. note says: "Now is not the time to send mixed messages to the SARG [Syrian Arab Republic Government] either through investment deals or through any form of economic or political reward to the Damascus regime."
It is not known whether China has been told such. And I am not sure it will be. And No, Shell is not an Indian Company! Yes, Shell has huge business interests in the U.S. itself. And yeah, Shell could have been easily arm-twisted. Ofcourse, US-Canada relations are cordial and not affected by Petro-Canada's investment in Syria for this long.
Getting a warning is one thing. I am trying to figure out what we did or did not, to let others think that they can poke their noses in our affairs. Our policy/attitude must be introspected upon. We should try to rise a little bit higher than the door-mat level.
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I am the saint; i am the sinner I am the creator; i am the creation I am what I am! (chumma oru vetti bandha'kku dhaan)
8 comments:
Thanks for visiting my blog. And you're in Chicago? I spent the last few years there and miss it like crazy....even the piles of snow! Congrats on your new car too!
@m - Oh! you're welcome. Yes I am in Chicago. Infact, I am in Schaumburg. I too like the snow but am afraid of Black ice. And thanks for your congrats. :-)
Someone decided that Jus' Fun would be apt for her post title today... thanks for the idea ;)
i never knew u bought a car..congrats sir!
apron..thanks for the comment..u r always young sir1 who said u r old...u r always young dear!
take care! and enjoy life!
well u said it...
@Casa - You made my day!
@ Ana - You should keep in touch with your friends. btw, How much I owe you? :-)
paravai - Thx
What strategic advantage does this move give the US, especially if you suspect that the chinese are not getting the stick? It is possible that the CNPC wont be able to generate $0.5 billion on their own, which opens the door for petro-canada or even shell/exxon to renegotiate the deal at a lower cost. But it is quite easy to see through this ploy. Further, if there is a UN resolution on Syrian cooperation, what does trade have to do with it? The logic beats me. Just like the logic beat me when Arcelor bickered with Mittal and make it a race issue...
Here it's just bullying. With Arcelor they first tried to make the hostile take over costly by declaring high dividends. Then they queered the pitch by giving the business war a political colour.
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