OILWATCH

RESISTANCE No. 20

THE OILWATCH NETWORK BULLETIN

September 2001 Dear Friends: In this issue of RESISTANCE we want to share the good news that Occidental has not found hydrocarbons in U’wa territory. This does not by any means indicate that the threat to the U’wa people has ended, and we should still be wary of any new happenings. We also include additional information on Colombia, as well as news from Cameroon and Angola. We are asking for solidarity on the campaign being carried out in Ecuador regarding the heavy crude oil (OCP) duct. We have included two new selections; one on human rights and the events occurring in Sudan, as well as labour rights. In the section on Climate Change, we include news on El Niño, and update information on the Kirthar National Park in the section on protected areas. We are also providing information on a court case in the United States against Chevron. We have added a reflection on Energy Sovereignty, as a basic requisite for constructing sustainable societies. Warm regards to all, INTERNATIONAL OILWATCH SECRETARIAT ENERGY SOVEREIGNTY Esperanza Martínez One of the main problems with humanity is the energy consumed in most of the world that consumes more resources and produces more waste every day, and worse, humans have lost contact with energy sources and processes. Oil is the main source of energy used by humans. People think that oil companies produce oil and that the number of barrels of oil consumed measures development. Energy sovereignty plants the idea that it is not enough to “have”, but that it is necessary to “decide”, to “control what we have”, to “know how and why we have what we have”, or in other words to “know where we obtained it from.” Do we know where the energy that we use comes from? Do we have any control of the sources of energy, of its price, of its distribution? Do we know if it is a renewable source of energy or if we are sacrificing future sources?

Energy sovereignty implies having the capacity to generate the energy that we consume, without having to import it, and not having to export it. It means finding alternatives to the activities that consume a large amount of energy such as mechanized agriculture, the flower industry, the shrimp industry, which also threaten other activities which are producers of energy, such as peasant agriculture or the collection of shellfish. The potato produced by a peasant, growing only with sun and rain, is much different that the potato produced in laboratories in the United States, that are fed chemicals, then frozen and transported long distances. A sustainable society, from an energy point of view, should be sustained in the conservation of the environment, respecting the rights of communities and in recuperating the natural cycles of energy. The sources of energy should be renewable, clean, with little environmental or social impact, and should guarantee equal and democratic access. It is predicted that energy sources in the future will return to being water, sun and wind. They will be decentralised, autonomous and imply freedom. They will be diverse sources and in accordance with geographical surrounding and local needs. The sooner the path towards energy sovereignty is started, the better it will be for the planet and its countries and for the populations of the earth. The best way to guarantee energy sovereignty is to develop small-scale and autonomous alternative energy projects that do not require large investments. In order to achieve this we need to relocate investments, loans and subsidies towards renewable, clean and low-impact energy projects that will allow for the formation of sustainable and decentralised energy. At the same time, oil extraction and oil subsidies need to be stopped. If we examine the real costs of oil, we will see that besides sovereignty we have also lost land, health and resources. =============== CLIMATE CHANGE =============== CRONICAL OF DISASTERS: EL NIÑO 1997-1998 The Pan-American Health Organisation OPS –part of WHO-, through their “Chronicle of Disasters” series, carried out an analysis in the health sector in regards to the phenomena EL NIÑO, South Oscillation (ENOS), establishing a historical relationship of the facts tied to the phenomena according to a chronological series of events, and the devastating consequences emphasizing what happened in Ecuador, Peru and Bolivia. The book covers the governmental politics developed by the different states, making clear and precise observations on the strategies that were implemented in a positive way and those which did not do anything to attack the problem. The book also states that El Niño is the result of an interaction between the El Niño ocean current, which originates from certain variations in sea and air temperature, and the South Oscillation, which

comes about from atmospheric pressure, produced by variations in certain conditions, and in certain periods. The book is divided into two parts. The first is a regional vision, where the study of the phenomenon took place and its continental consequences, given that it not only affected Ecuador, Peru and Bolivia, but also Colombia, Venezuela, Central America, the United States, as well as some African and Asian countries. Effects of the phenomena have been noted for centuries by fishermen especially in the north of Peru, but global warming and climate change have been aggravating and deepening the phenomena and its effects, making it difficult to constitute the necessary previsions for these consequences. The second part analyses the politics established in the most affected countries. The chronicle also touches on the organisation of civil society and the deficit in the planning carried out by the affected states. The implemented politics helped to prevent worse consequences, but at the same time the existing infrastructure was not taken advantage of, due to the lack of information in contingency plans, and to the fact that there was not a concrete database of information from previous years, which could have resulted in more effective and efficient planning from civil society. The lecture attempts to incorporate a reflection of the governments involved and how after the urgency has passed regarding the phenomena, it is quickly forgotten and the mistakes and bad policies that exist are not remedied, especially those which involve health, food and nutrition. At the same time, it indicates the importance to establish and manage a database with the most accurate information as possible so that government politics can be adapted to fit social realities. However, the environmental subject is not looked at in great depth, and is not seen as a previous problem to the phenomenon. The book only considers environmental sanitation, better installation of highways and sanitary services, etc., and does not focus on the lack of a State environmental policy. It is important to understand the linkage between affected countries such as Ecuador, Peru and Bolivia and their energy policies that promote the burning of CO2, because of being oil-producing countries. It is not taken into account that these energy policies are contributing to global warming at an accelerated rate, which is also connected to the El Niño phenomena, given that centuries ago the effects were much different and not as damaging as we see them today. ====================== OIL IN PROTECTED AREAS ====================== John Rowley Editor-in-Chief Planet 21 UPDATE1- Pressure mounts on Premier's Pakistan gas bid (Adds comment from Friends of the Earth, pgs. 15-18) By Andy Soloman

KARACHI, July 19 (Reuters) - Environmentalists in Pakistan said on Thursday they would make a fresh court challenge in a bid to stop Britain's Premier Oil Plc. from exploring for gas in the country's largest national park. Premier said this week it had been given permission to conduct seismic gas exploration surveys in Kirthar National Park, a project opposed by environmental groups and which has been dogged by controversy. "We were expecting (approval for Premier) but it's a big blow. We're going to be challenging it," said Farhan Anwar, an Executive Member of Karachi-based non governmental organization Shehri-Citizens for a Better Environment. "The courts are currently closed for the summer break and they'll be opening in the first week of August and we plan to challenge this amendment that the government has made to the law," he said. Anwar said Sindh's 1972 environment law was amended on June 1, lifting an outright ban on exploration activity in the park. "In the amendment that the governor issued they have added a clause...that if you do an environmental impact assessment (EIA) and it shows that no harm would be done...then you can go and explore in the park," Anwar said. Premier's approval followed comprehensive and independent surveys and a public hearing in Karachi. Officials at Premier Oil in Pakistan were not immediately available for comment, but a company source said it had a planning team working in the park and that seismic survey work would likely begin in September. Premier was awarded the Dumbar concession (Block 2567-1) in 1997 --part of which covers 90 percent of Kirthar National Park -- and the following year merged its onshore upstream operations in Pakistan with Royal Dutch/Shell. Shell said in May it would pull out of the joint venture in an asset swap deal with Premier, a move welcomed by environmentalists and which should be completed during the third quarter this year. BAD FAITH Shaiq Usmani, a lawyer representing the environmentalists, said a court petition against the Pakistani government, Sindh province, Premier and Shell had been lodged late last year but a hearing had never taken place due to various delays. "This amendment that was introduced certainly appears mala fidi (bad faith) because it has been issued after the (original) petition has been filed," he said. Kirthar, situated about 80 miles (130 km) north of Karachi, is Pakistan's first and largest of five national parks. It has protected areas of great scenic beauty and ecological importance, as well as being home to the rare urial sheep, ibex and chinkara gazelle and around 20,000 tribal people. But local people are mired in poverty. Many lack access to health and education facilities or to employment possibilities. INTERNATIONAL CAMPAIGN Craig Bennett, a corporate campaigner for Friends of the Earth International (FOEI) which has supported bids to stop Premier and Shell in Kirthar, told Reuters from London that an international campaign was being planned against Premier. "Premier Oil has developed a bad reputation because of their activities in Burma...now they seem to be developing a reputation for going in where even other oil companies

fear to tread," he said. Premier has faced resistance from the British government and human rights groups to its operations in military-ruled Myanmar. "Friends of the Earth International will be working...to see what legal opportunities there are to stop this British oil company using dirty British money to explore in one of Pakistan's most beautiful and precious places," Bennett added. Premier, in a company statement this week, said the seismic survey would be carried out in accordance with strict environmental protection measures, while any decision to drill for gas would also subject to a separate review process. Premier's current gas interests in the area include significant new discoveries at Bhit and Zamzama fields, north of the national park, the company said. Pakistan has in recent years discovered gas reserves of up to six trillion cubic feet that would add more than one billion cubicfeet a day of output over the next seven years. Pakistan's current gas output, which has a 39 percent share of total energy against 43 percent for oil, is estimated at 2.4 billion cubic feet a day, falling short of domestic demand of 3.4 billion cubic feet a day. SOURCES: Andy Soloman, andy.soloman@reuters.com ============= HUMAN RIGHTS ============= SOUTH AFRICA: COMPANY EMBROILED IN SUDAN OIL ROW Mail & Guardian 20 July 2001 The Department of Foreign Affairs has warned the Department of Mineral and Energy Affairs that plans by Soekor, a state-owned oil and gas exploration and production company, to extend its operations into Sudan, could have embarrassing consequences for South Africa and incur the wrath of international human rights bodies. This controversy comes shortly before a visit by Sudanese Foreign Minister Dr Mustafa Osman Ismail to South Africa. According to the Sudanese embassy in Pretoria, the visit is part of ongoing bilateral relations between the two countries. The Department of Foreign Affairs has confirmed that a meeting was held this month, where senior officials briefed mineral and energy affairs and Soekor representatives on the ongoing civil war, and of the damage that South Africa's reputation may suffer as a result of the company's involvement in the oil sector there. Critics claim the oil is being used by both sides to fuel the conflict and that the further development of the oilfields may exacerbate mass displacements of the southern Sudanese population. The most intense fighting is in the south of the country, around the oil fields. Sudan rakes in an annual profit of about $600-million from the oil-rich Upper Nile fields, but analysts estimate the real fortune lies in the less-explored southern regions. During the meeting, foreign affairs officials cited the negative media publicity surrounding the presence of foreign companies, such as Canadian petroleum giant Talisman and

Sweden's Lundin, in the region. According to Roger Ballard-Tremeer, the director of the North Africa desk in the Department of Foreign Affairs, such briefings are routine with companies wanting to do business abroad who need information, including the state of relations between the prospective country and South Africa. He said the department presented both sides to the conflict. "I think it's very good that Soekor came to us beforehand, to get a clearer idea of the situation," Ballard-Tremeer said, adding that Soekor was looking at several different countries to expand into. He also said he was not aware that the company had taken a final decision on the matter. But matters appear to be pressing ahead. Soekor representative Rima Tshishonga this week brushed aside foreign affairs concerns. She confirmed the briefing had taken place on the political situation in Sudan, but added that it was "all about profits". "Ministers advised us on the political situation but oil is viable business: we do not want to only concentrate on the political side because we are in business," Tshishonga said. However, she said, Soekor had embarked on its own investigation with the help of a Sudanese agency, to assess both the political and economic situation. Soekor has decided to form "an exclusive study agreement" with Sudanese officials, to examine the possibility of obtaining concessions for oil exploration. Soekor, which reports directly to the Central Energy Fund (CEF), was formed in 1965 to reduce South Africa's dependence on imported oil. It explores for oil and gas off South Africa's shores as well as abroad, with particular focus on Africa and the Middle East. This is not the first time oil exploration has been discussed with the Sudanese government. According to reports from the Sudan News Agency, a high-level African National Congress delegation, including Deputy Minister of Mineral and Energy Affairs Susan Shabangu, visited the Sudanese capital, Khartoum, earlier this month. Although attending the country's 12th National Salvation Day - celebrating the military's coup 12 years ago - as an ANC official, Shabangu was widely reported in the local press as saying the visit wanted to look at possibilities of cooperation between the two countries "in all fields". Shabangu also lauded Sudan's "great economic accomplishments", especially in oil production, saying it could bolster joint relations. The deputy minister said a technical South African delegation would soon be dispatched to Sudan to invest in the fields of energy and mining. Sudan has been in the grip of a devastating civil war for decades, where a battle between the ruling north and various factions in the south for control of resources, including agricultural land and mineral resources, have led to millions of deaths and displacements. Aid agencies operating in Sudan say the fighting has been exacerbated by the growth of the oil industry. A coalition of human rights organisations and aid agencies has been spearheading a

"Peace First" campaign that has been applying pressure on governments and oil companies against investing in Sudan's oil sector. Sources: The Mail&Guardian, July 23, 2001. More information: Linda Ambler. groundWork linda@groundwork.org.za ============== LABOUR RIGHTS ============== In Indonesia, a local NGO, FPTK, filed a suit against 16 firms operating in Riau, including oil and gas service companies PT Halliburton, PT Schlumberger and PT Borindo. The companies are accused of discrimination against their Indonesian employees, failure to provide minimum safety in their working conditions and violation of ILO standards. (Petromindo 21, 23/Nov/00, 19, 20/Jan/00) ============ GOOD NEWS ============ CAMEROUM ========== INDUSTRY HAS TO PAY FOR POLLUTION Several companies have been found guilty of environmental pollution in Douala, according to a communiqué published by the Ministry of Environment and Forests on 21 June 2001. Penalty fees have been imposed on the following six companies: CICAM (textile industry), MAETUR and SIC (real estate), CAMRAIL (railway company owned by the French Bollore), Guinness (Brewery) and Mobil (Oil industry). Each of the companies has been fined with 50 000 FF. Critics argue that the amount is far too low to cover the reparation of the ecological damage that has been caused. The companies CAMRAIL and Mobil have paid a bail of 20 000 and the investigation to determine the final penalty is still ongoing. Both companies are accused of "disposing crude oil and waste water in the natural environment". ExxonMobil is the consortium leader of the Chad Cameroon pipeline project, which the environmental risks have been a major concern of. CAMRAIL had recently made public commitments concerning better environmental management, in order to comply with World Bank requirements concerning a loan from the International Development Association. SOURCE: InsideCameroon. Center for Environment and Development www.cedcam.org COLOMBIA ==========

OCCIDENTAL FINDS NO OIL AT COLOMBIAN SIRIRI WELL BOGOTA, Colombia, July 27 (Reuters) - Occidental Petroleum (NYSE:OXY-news) has stopped drilling at its Siriri field in Colombia and is considering the future of the project after finding gas and condensates but no oil, a company official said on Friday. Occidental still considered an oil discovery in the Siriri site -- up until now the company's biggest hope for a new major discovery in Colombia -- to be ``possible'', a spokesman said. But the highly complicated geological structure and security concerns would both be factors in the company's decision on whether or not to resume test drilling. Drilling would not resume for at least one year, he said, adding that more seismic studies would probably be needed first. The Siriri field is located near the Venezuelan border in the 47,000-hectare Gibraltar Basin, about 140 km from Occidental's existing Caño Limón field in eastern Colombia. Exploration at Siriri started in February 2000 and its possible reserves were first estimated by the company at 1.4 billion barrels. At the time test drilling began, Occidental rated the chances of discovering a commercially viable oil deposit at Siriri to be about 20 percent. Source: Friday July 27, 6:49 pm ET ============= IN CAMPAIGN ============= BANKS THAT FINANCE THE OCP - ECUADOR Dear Friends of the Environmental Movement: We are in the midst of a campaign against the German bank WestLB, who is aiming to finance a major part of the OCP construction. The following days will be crucial in our struggle because at the end of July the bank will make a definitive decision about the financing. Because of this, we have started a series of urgent actions. We ask that you sign the attached letter and that you send it to the list of people below by fax or e-mail. Please circulate this letter among colleagues and friends, and try to include it in web pages of your own or friends’ organisations. We will be waiting for your support on Monday, July 23, 2001 at 9 o’clock in the morning in front of the Municipality to protest the construction of the OCP through Quito, and at 11 o’clock in front of the German embassy, to protest the financing for part of the OCP by a public German bank. Thank you. Yvonne Ramos

Accion Ecológica 1) WestLB Executive President Sr. Dr. Friedel Neuber Herzogstr. 15 40217 Duesseldorf, Alemania Telephone: 0049-211-8262210 o 0049-211-8263072 Fax: 0049-211-8266121 E-mail: presse@westlb.de 2) President of the Federal State of Renania of Norte-Westfalia (NRW) Sr. Wolfgang Clement Stadttor 1 40213 Duesseldorf, Alemania Telephone: 0049-211-837-1200 o 0049-211-837-1201 Fax: 0049-211-837-1562 E-mail: wolfgang.clement@landtag.nrw.de 3) Economic Minister of Federal State of Renania of Norte-Westfalia (NRW) Sr. Ernst Schwanhold Haroldstr. 4 40213 Duesseldorf, Alemania Telephone: 0049-211-837-02 Fax: 0049-211-837-2200 E-mail: poststelle@mwmev.nrw.de 4) Rheinischer Sparkassen- und Giroverband (Confederation of Savings Accounts of Renanas) Executive President Sr. Dr. Karlheinz Bentele Kirchfeldstr. 60 40217 Duesseldorf, Alemania Telephone: 0049-211-3892-01 Fax: 0049-211-3892-240 E-mail: info@rsgv.de SAMPLE LETTER Dear Sirs: It is with great concern that we receive news that the WestLB is heading a consortium of banks to finance the construction of the new Heavy Crude Oil Duct (OCP) that will run across Ecuador, with a credit of 900 million dollars. The OCP is designed to transport up to 450.000 barrels daily of heavy crude that will be extracted from protected areas and indigenous territories in primary tropical rainforest in the Ecuadorian Amazon, which will cause the potential disappearance of ethnic minorities such as the Huaorani and Zápara populations. This oil duct will cross eleven protected areas of important ecological value. According to our sources, the construction of the OCP will have extremely catastrophic ecological,

social and economic consequences for more than one million Ecuadorians, as well as destroying their surrounding homes and lifestyles. To us this means a violation of fundamental rights, including environmental rights, of the human populations affected. WestLB will be indirectly responsible for this with their financial support for the oil duct. The OCP will share in large part the existing duct, the SOTE, whose ruptures have caused the death of 67 people, as well as many wounded and missing. In addition, the 47 ruptures that have leaked oil have caused environmental damage of incalculable costs. Precisely for being the biggest public bank in Germany, the WestLB has a special responsibility to respect human rights at a world level and to carry out a careful relationship with the environment. We urge you to immediately abandon the financing for the OCP project in Ecuador, in light of WestLB’s high political responsibility. We thank you for your time and attention and await your response. Name and/or organisation: Date: Address: For more information: Ivonne Ramos. amazonia@accionecologica.org COLOMBIA ========== U'WAS SAID THAT THEIR GOD HAS HIDDEN OIL FROM OXY Sunday, August 5, 2001 The U’wa indigenous people say that the oil company Oxy did not find crude in the Samore block, between the north of Santander and Boyacá, because their supreme god, Sira, did not let them. Oxy said at the end of the month that they had only found gas in this zone. . One night in November 1999, a U’wa werjayá came with sacred water in a wine bottle, brought from the hills of Cedeño, in Samoré. The indigenous man prayed in a strange language, looked at the sky and poured the liquid, that had been blessed by Sira, on a slate of cement, where the “white” technical people had marked one of the sites for exploration. The werjayá, a wiseman of the tribe, anticipated the results of the Occidental (Oxy) work. This was the beginning of the U’wa opposition against oil exploitation; they even threatened with mass suicide if the work was to continue. Six months after that ceremony, the oil company arrived at the site, after a battle between the indigenous people and the government. The constitutional court gave the go-ahead for oil exploitation.

Supported by an army of soldiers, the oil workers entered with almost 500 trucks and heavy machinery into this sacred territory, where the natives still eat roots and do not accept the birth of twins or invalids as something natural, condemning them to death. While the indigenous fasted, without eating anything with salt, and praying to Sira, the workers constructed their camps and installed the drills to initiate the drilling of a well that was supposedly the most promising reserve in the country and had been calculated by experts to produce 1.400 million barrels. During the work, the U’was were silent. Their werjayás, who live in the million hectares of ancestral territory, persisted with their worshipping and their protest marches, which made the cause famous in the United States and Europe. The blood of the earth. After more than a year of looking, the sacred water of the U’wa seemed to have had an effect. The Oxy, who had invested almost 60 million dollars in the exploration process of the Gibraltar-1 well in the Samore block, said that the oil that they had predicted that existed simply was not there. The company began to take down their equipment in Cedeño and the hope of the country of being self-sufficient in oil was passed to the sea, the government having authorised Total, a French company, to explore the coasts of Coveñas. After seismic investigations and satellite studies, the indigenous do not have another explanation of what had happened in Samoré. Their god Sira had hidden the oil from the white men. These are the commentaries made in Cubará (Boyacá) by members of the community, according to a representative of the municipality, Xiomara Mejía Canay. "They have said that because of the prayers of the werjayás to their god Sira, mother earth hid her blood so that it could not be extracted", said the functionary. The U’was had explained that oil is the blood of the earth to extract it means that the trees will die, the land will dry up and the sources of water will disappear. Roberto Pérez, president of the U’wa governing body, is keeping silent. He says that for the moment he will not describe the turn of events until the werjayás, who are in a fasting period, authorise that the whole story be revealed regarding the impediment of the oil exploration. He was limited to state that Sira is the power of the world and of nature and that the neither the government nor Oxy with all of its technology could oppose this power. He announced that the sacred fasting of meditation and purification will continue and that the werjayás, who are considered the guardians of the heart of the world, will keep fighting to defend the life of mother earth.

"The knowledge inherited from our ancestors and the spiritual communication with the eternal father Sira, that we conserve and practice to this day, allows to reaffirm our cultural vision and mission that we are obligated to defend with dignity", said Pérez. The indigenous leader indicated that the U’was consider that the fight against oil exploration has not ended, since Oxy still has equipment located at Gibraltar and therefore there is a risk that they could restart their work. Their fear has some truth to it. The company announced that it will carry out new seismic work in the Samoré block, which may include more drilling, specifically in an area the U’wa consider to be an important mythic region. But the U’wa have confidence in their god. "We will not permit exploration in our ancestral territory", said Pérez, and the werjayás continue to pray to Sira that the blood not be extracted. By Jorge Enrique Meléndez and Luis Alberto Miño Writers for EL TIEMPO ========================== VOICES OF THOSE WHO RESIST ========================= FIVE LIES ABOUT THE EXPLORATION AND EXPLOITATION OF OIL IN LIMÓN LIE No. 1 “Oil exploration does not produce serious environmental impacts” ¡¡FALSE!! Oil exploration is an extremely contaminating activity. When the exploration is in deep water the process consists of various stages. The first is a seismic exploration, which produces a series of detonations at the bottom of the sea, resulting in an ear-piercing sound that kills all marine life when the impact is direct, and alters the hearing of dolphins, whales and turtles. The second stage consists in the opening of wells that can cause the escape of crude oil, gases and other toxic substances, also severely affecting marine life. Oil exploration has started in the city of Limón, and any accident that occurs in this area will severely affect protected coastal areas. The ocean currents that move from northeast to southeast will put in danger all of the conservation efforts that have been achieved in this zone. There will also be an impact on the cultural richness of the zone where Negro, whites and indigenous people live together, affecting their elements of existence. When oil exploration is on land, the use of chemical products and oil spills leave rivers, waters and air contaminated; this is coupled with the damage done by associated activities such as deforestation and the loss of biodiversity. LIE No.2

“Oil exploration done with advanced technology causes less damage to the environment” ¡¡FALSE!! There is no type of oil exploration in the entire world that does not contaminate. Even in more developed countries with access to resources and better control, there have been accidents and the leakage of oil, which have not been cleaned up adequately, and therefore not saving the effected environments. An example of this was the tragic accident in Alaska by the powerful oil company Exxon. There are also examples of the United States pulling out of high tourist zones within their own country precisely because of this risk. In the Caribbean, coral reefs are at high risk as well as rainforest that hold some of the richest and most important biodiversity on the planet. The damage done to these systems cannot be reversed. The damage that oil does is so great that it just does not correspond to put in danger our natural resources and the benefits that they provide. LIE No. 3 “Oil activity creates jobs in the zones of exploration” ¡¡FALSE!! Oil exploration only means temporary work for a small group of people, and sometimes requires qualified labour. After the infrastructure is built, the company will bring in qualified outside help. Experience has shown us that only difficult, temporary and badly paid work is granted to local people. LIE No. 4: Oil exploration can improve a region's economy. ¡¡FALSE!! The economy can only be measured according to the progress of its people. In other Latin American countries where there is large-scale oil activity, living conditions are maintained at levels of extreme poverty, such as in Mexico, Venezuela, Colombia, Ecuador, Peru and Brazil. It is even worse when the oil companies leave, and they only leave behind contamination, unemployment and health problems for local people. This has also occurred with banana activity. The most important economic activities in our zone are tourism, bananas and other crops and fishing; through these activities, Limón is able to support the national economy. All of these activities are extremely affected by the contamination. We are trying to work towards a sustainable development and oil activity is not compatible with our other economic activities. LIE No. 5: “We cannot do anything to impede oil exploration because it is legal” ¡¡FALSE!! We the inhabitants of the Caribbean zone are the ones who should be deciding our own model of development. The central government did not consult us, nor did they inform us of their plans to provide concessions of the rights to our subsoil to oil companies. The Political Constitution supports our right to receive all the necessary information in order to influence political decisions that will affect us. Because of this situation, we

have organised ourselves to unite our strength in the defence of the well being of our people and the biodiversity that surrounds us. In addition, in order to carry out these types of activities, it is necessary that an Environmental Impact Assessment is made, which the National Environmental Technical Secretary should approve of, and should establish mitigation strategies. However, as of now, there is no such study that establishes what is the exact situation of our resources, therefore: ‘¿… with what criteria can we monitor and follow this activity…what are the reference points for determining the damages? ============== FROM THE NEWS ============== NIGERIA ======== Bowoto vs. Chevron Wed, 09 May-01 In May of 1999, victims of gross human rights abuses associated with Chevron's oil production activities in the Niger Delta region of Nigeria filed suit against Chevron in federal court in San Francisco. The case is based on two incidents: the shooting of peaceful protestors at Chevron's Parabe offshore platform and the destruction of two villages by soldiers in Chevron helicopters and boats. It was filed under the Alien Tort Claims Act, which permits suits in U.S. courts against individuals or corporations that commit international human rights violations anywhere in the world, if that person or corporation resides in or visits the United States. In a major victory for the Plaintiffs, the Court in the Spring of 2000 rejected Chevron's request to dismiss the case. Chevron had argued that Nigeria was the proper forum for the dispute. It had also argued that the claims arising out of the Parabe incident did not allege violations of international law because the Plaintiffs were trespassing on the platform and that litigation of the Parabe claims would interfere with U.S. foreign policy vis-a-vis Nigeria. The Court concluded that none of these assertions warranted dismissal of the case at this early stage of the proceedings. In a major victory for the Plaintiffs, the Court in the Spring of 2000 rejected Chevron's request to dismiss the case. Chevron had argued that Nigeria was the proper forum for the dispute. It had also argued that the claims arising out of the Parabe incident did not allege violations of international law because the Plaintiffs were trespassing on the platform and that litigation of the Parabe claims would interfere with U.S. foreign policy vis-a-vis Nigeria. The Court concluded that none of these assertions warranted dismissal of the case at this early stage of the proceedings. The Shootings at the Parabe Platform Chevron's massive environmental destruction in the Niger Delta has caused serious problems for the local people. Specifically, Chevron's dredging has salinated the fresh water supply, destroyed riverbeds and the natural ecosystem, and caused erosion. Indeed, several villages are at such extreme risk from erosion that they may simply be swallowed up. In other areas, the water level is now too low, due to silt, and boats can

no longer pass nor fish survive. In sum, Chevron's activities have destroyed local people's homes and fisheries, leaving them without means of support and ruining their fresh water supplies. Delta residents petitioned Chevron to clean up its mess, and to provide water wells, jobs, scholarships and electricity. (Ironically, while Chevron makes huge profits from Delta oil, and while it lights the sky at all hours and causes massive air pollution by flaring natural gas, neighboring communities have no electricity.) Chevron, however, ignored the residents' complaints and refused even to discuss their concerns. Finally, in frustration, Delta residents went to Chevron's offshore Parabe Platform and demanded that Chevron officials meet with community elders on shore. Chevron admits that while these local people carried no weapons, Chevron's own security officers on the platform were armed. After three days, when negotiations seemed to be moving, the protestors agreed to leave the next morning and Chevron was informed that they would do so. Apparently, however, Chevron management decided to teach the residents a lesson and to send a message to any other Delta people thinking about a similar protest. Early on the morning of May 28, 1998, Chevron pilots in Chevron-leased helicopters approached the platform. Inside the helicopters were soldiers and other Chevron representatives. The soldiers opened fire on the protestors even before the helicopters landed. Two protestors were killed and others were wounded, one of whom was bayonetted after already having been shot. The leader of the protest was taken off by the soldiers and later tortured because he refused to sign a confession stating that he was a pirate. Amy Goodman and Jeremy Scahill, reporters for Democracy Now, visited Nigeria shortly after the Parabe Incident and secured admissions from Chevron that their helicopters were used and that their head of security was on board during the attacks. The Destruction of Opia and Ikenyan on January 4th, 1999, about seven months after the Parabe incident, Chevron-leased helicopters flew over the fishing villages of Opia and Ikenyan and opened fire. Shortly thereafter, Chevron-leased boats filled with soldiers attacked the villages. As a result of these air and amphibious assaults, at least 7 people are known to have died and most of both villages were burned to the ground. Many more were injured or remain missing, and nearly everyone lost their homes, boats or other possessions in the fires. The Court's Rulings Chevron argued to the Court that Plaintiffs' claims should be heard in Nigeria, not San Francisco, where Chevron is based. The Court rejected that argument, because Chevron did not consent to subject itself to jurisdiction in Nigeria. The Court also noted that a court in California has a compelling interest in hearing cases involving allegations of international human rights violations against a California corporation. Chevron further argued that the Parabe Plaintiffs could not sue because the shooting of unarmed protestors who are trespassing does not violate international law. The Court, however, concluded that the Plaintiffs had adequately alleged violations of the international norms prohibiting summary execution and torture. Finally, the Court rejected Chevron's argument that the Parabe claims would interfere with U.S. foreign policy, concluding that it could not reach that conclusion at this stage of the litigation. These rulings are significant. In stark contrast to Chevron and its military crony's violent

repression, the Court has granted Plaintiffs an opportunity to seek justice before a neutral forum. More information: EarthRights International webmaster@earthrights.org CHINA ====== EXXON, SHELL, BP ON LIST TO BUILD $14 BLN GAS PROJECT (UPDATE1) By Lim Le Min Beijing, June 6 (Bloomberg) -- Exxon Mobil Corp., the Royal Dutch/Shell Group and BP Plc, the world's top three publicly traded oil companies, are on the final list of bidders to build a $14 billion gas pipeline in China, a PetroChina official said. PetroChina, the country's No.1 oil company, said last month it received initial bids from 12 companies in seven groups to build the 4,000-kilometer pipeline to transport natural gas from China's western province of Xinjiang to the eastern coastal city of Shanghai. Exxon Mobil teamed up with Hong Kong-based CLP Holdings Ltd.; BP formed an alliance with Malaysia's Petroliam Nasional Bhd., and Japan's Mitsubishi Corp., Itochu Corp. and Nissho Iwai Corp.; while Shell submitted its bid alone. ``The oil majors are flush with cash,'' said Gordon Kwan, an analyst with HSBC Holdings in Hong Kong. No other company ``would be able to take on such a big project.'' Beijing says the west-to-east pipeline project is a chance for foreign oil companies to sell gas in China's growing market, especially its prosperous coastal provinces. China, which counts on coal for more than 70 percent of its energy, wants to quadruple use of natural gas to 8 percent by 2010. ”The three companies were chosen based on their commercial experience and their financial strength,'' said Cao Zhengyan, a spokesman for PetroChina, which controls the project. West Fields Analysts say foreign oil companies are drawn by the prospect of drilling for gas in Xinjiang's Kela-2 gas field which is reserved only for the foreign company that wins the contract to build the pipeline. Chinese officials said Kela-2 is the country's largest gas field. ``It's premature to say which of the three companies will eventually commit to the project,'' Kwan said. Much depends on the outcome of their talks with PetroChina on development of the gas fields in Xinjiang, he said. PetroChina said it has shelved talks with the other four bidders for the pipeline that didn't make it to the shortlist. Hong Kong & China Gas Ltd., Hong Kong's sole distributor of piped gas; OAO Gazprom, Russia's No.1 natural gas company; Energomachexport Russia, an engine and equipment supplier; and Houston Inspection International Inc. had submitted separate proposals to build the pipeline. PetroChina said construction of the pipeline is scheduled to start in the second half of

this year. PetroChina shares ended unchanged at HK$1.84 yesterday. Sources: North Asia News Wed, 06 Jun 2001, 4:56pm HKT COLOMBIA ========= Bombing Shuts Caño Limón Again A bomb attack last Thursday shut down pumping at Colombia's beleaguered Caño Limón pipeline after 19 hours of operation, state oil firm Ecopetrol said. Thursday's attack at 4:44 p.m. local time shut down the Caño Limón line, Colombia's second-largest crude export pipeline, for the second time in a week. The pipeline - a favorite target of rebels fighting in Colombia's 37-year-old civil war- has been virtually paralyzed since mid-February, although it did manage to sustain pumping for two days last week (OD Jul.10,p9). Rebels have bombed the pipeline 109 times this year. Paralysis at Caño Limón has hit the government hard, slashing revenues from oil production -the country's top foreign exchange earner. Ecopetrol earlier reported a 21% fall in June oil production, compared with the same month last year. Since the beginning of the year, oil exports have fallen by 28.7%. Just over one week ago, rebels also bombed the country's third largest pipeline, the 110,000 b/d Colombia pipeline, forcing a halt in operations. The Caño Limón field in the eastern Colombian province of Arauca -a rebel stronghold- is operated by US Occidental. It receives 35% of the oil pumped through Caño Limón, while Ecopetrol receives 50% and Spanish Repsol-YPF gets 15%. Source: Oil Daily Monday, July 16, 2001 BRAZIL ====== Petrobras has awarded Coflexip Stena Offshore and Premier Marche's Brazilian entity Flexibras a contract to design and install 566 km of flexible risers, flowlines, and umbilicals to tie back 21 satellite subsea wells in the Roncador field to the P-36 platform. Roncador is in the Campos basin off Brazil. Oil and Gas Journal. 2001 ========= REVIEW =========

"POST-OIL ECUADOR" If the president of the Republic – of Ecuador- read this book, which very unlikely, he would release an expression of which the 300 columnists of the national press would take care of. Being a terrorist book is no recommendation. In the Company of Jesus of the Noviciate of Villagarcía, in Aragón Spain, there had entered a novice with the surname Salgado. He was a good fellow with noble ideals. When going through one of the noviciate tests, the one he had to pilgrim through the lands of the Duero asking for charity for one month, a teacher had given him a whistle so he could use it to scare off bad guys, some illegal Ecuadorian immigrants. When the time came for him to take the first vows of Chastity, Poverty and Obedience, the council of superiors gathered in order to determine if the novice was mature enough for the vows. And they said no. He had to wait six more months. Reason being that famous whistle. Keeping a wistle which had been given as a present by a teacher without permission, was, definitely, wrong. When the time came for being ordered a priest, 14 years later, priesthood was delayed one more year because of the famous whistle. An so on... later he had to make the fundamental Vow of Obedience to the Pope with a two year delay. And every time a promotion came up: Principal of University of X, Provincial of Aragon, General Father’s Assistant in Rome… promotions were delayed for him because of the whistle from Salgado. The whistle had entered his file, and never left it. When he died, the whistle appeared in the chronicle of the Gratifying News of the Province of Aragon of the Company of Jesus. There is no such luck, dear ecologists, for this book co-edited and co-written by the terrorist group Acción Ecológica. And this is a real shame, because the book is good. Its main themes and arguments revolve around a central idea: that it is possible and realistic that Ecuador can develop humanely without oil. This affirmation is sacrilegious. If there was inquisition in this slowly developing country, the terrorist ecologists would have drowned in the calls of some oil and gas spill. And I say terrorist ecologists because those controlled by the regime, those who advertise pretty ideas about nature and being ecologically friendly, are silent when the opposition comes on the scene, those that are the lovers of progress and economic development. The book is good because of its thesis or its main idea, which it develops well. The book starts with the prince of terrorists, Alberto Acosta Espinosa, closely related to a crazy immortal and populist individual. Acosta contributes with two strong pieces, one at the beginning of the first part of the book, and the other at the beginning of the second part. Acosta analyses the development produced by oil, the benefits and negative consequences. This is well documented and argued. The second part proposes some elements so that poor countries can begin to think of development from their poverty.

A PhD graduate of Yale, Judith Kimmerling presents a piece in which she describes the horrors incurred by Texaco, and the defence of the Indians, the colonial settlers and nature. This piece of the judicial on-goings involving Texaco is well known in Ecuador because "Vistazo" published an abstract of the book on the Amazon and Oil in the 90s. Judith is a researcher in situ et in bibliotheca. Very complete, Dr. Kimmerling, very complete. Alexandra Andrea Albuja clearly narrates the history of oil in Ecuador and provides us readers with precious pearls, such as the fight between Shell and Standard and the consequences for Ecuador after the invasion of Peru in 1941. This short history of oil in the Amazon is completed with a chronological map of events on the important moments in the history of oil and of the actions against oil activity by ecologists. Carlos Larrea writes about the Transition to a Post-Oil Economy. Larrea already has us accustomed to his sober and correct writings, serious in his data, analysis and very philosophical. It is worth citing from the conclusion: "Given this reality, an alternative model is provided, which is diversified and based on a balanced development of the internal market and exportations, that consolidates the regulating role of the State in terms of natural resources, and redistributive action, and promotes a sustainable development based on equal distribution of income and productive resources, the development of human capital and sustainability. For this option to be made possible, it needs the wide participation of an organised society." (p. 105) There are two pieces on alternative energy and the constitution of a decentralised State. The one is by Milton Balseca, and the other by Fernando Carrión. These topics are well known as their authors have often included them in their columns and speeches. This is how an alternative proposal goes about being constructed from diverse variants of social sciences and technology, resulting in a proposal with a head, a body, arms and legs. Esperanza Martinez closes the second part with a radical proposal, a valiantly declared utopia: the proposal for a complete moratorium on all oil activity. This thesis of a post-oil alternative is compared to the writings of Santa Catalina de Siena and church reform. Both are mystic writings. The third part of the book is shorter and more to the point. It touches on diverse political alternatives for a post-oil Ecuador in the fields of energy sovereignty, food sovereignty, community economies, alternative markets, artesian work, and other alternatives: some already developed in the book and others which are new. This section includes the following authors: Esperanza Martínez, Elizabeth Bravo, Carlos Viteri Gualinga, Catalina Sosa y Diego Puente Corral. The third part and the whole book is concluded by Ivonne Ramos, with a piece titled "The Megaphone, the Cloth and the Drum" about how to mobilise the natural and eco-society against Texaco. There are dates and events in chronological order, of what has been demanded of Texaco, as well as a description of how to preserve this struggle. In effect, the last part of the book, tells us how to be a stone in the shoe, a flea in the ear and hair in the soup of Texaco, accumulating evidence for the court, and putting in practice creative actions of high impact at the national and international level.

The book ends gloriously with a tempest of rays: with too much ozone in the air. This ozone is in the form of statistics on oil and the national economy. As you can see, the book is worth a lot, it is well done, and very up-to-date. It offers a collection of coherent alternatives to oil development, which are well thought-out. Far from being a terrorist book, it is a creative and dynamic book full of hope. The thesis is realistic and possible. It is possible in scholastic logic because the concepts do not contradict themselves. It is possible that a post-oil development occur, that development start with objective conditions. The book itself is a challenge; it is a book of challenges. Many of its proposals are utopic, but they pass the challenge. The fact that they cannot be put in practice through a reasonable process in a given amount of time, also passes. And people who do not have political power propose these two elements. It is a book that that reflects many actions carried out by citizens. The initiatives in action are valid, small, transcendental, generators of new ways of living with human and natural resources in this country that based on a constitution with practical processes, will continue to enrich and grow. So it isn’t all utopia. I close this presentation with giving my hand and a kiss to the authors: with applause, with love and with breath. Keep up the struggle which is long, but the ending that you are looking for is a little closer each day. Source: Simón Pachano FLACSO - Quito 26 of June, 2001 ================== OIL IN THE TROPICS ================== ANGOLA ======== Angola is the biggest oil producer in the Sub-Sahara region of Africa, after Nigeria. Its oil is of excellent quality, and almost 70% are exported to the United States. At the moment Angola produces almost 800.000 barrels daily of oil and hopes that with new investments that this production will grow in the next few years. They hope to be able to produce 1'000.000 bdp at the end of this year, 1'400.000 for the year 2003 and 2'500.000 in 2015. In 1999 Angola occupied third place in the world for new discoveries and oil sites with reserves of 1300 million barrels. Its main discovery was the offshore site of Cabinda in the north of the country,

During the last few months, a large part of the territory that was in the hands of the UNITA forces have been recuperated by government forces, and that has led to new foreign investment in the country. TotalFinaElf and Chevron/Texaco (for more than 40 years) have been operating in the country for some time, under licences obtained from Sonangol, the state company. Sonangol owns around 12 concessions or oil blocks for which its exploration arm, "Pesquisa & Produçao" is directly responsible. Of these, Block Zero is the biggest, the Cabinda offshore site, close to the border of the Democratic Republic of Congo. Here about 70% of the country’s oil is produced. Chevron started operating in the Kuito Block, in deep waters in the province of Cabinda with a production of 100.000 bdp. It has also made two important discoveries in Block 14 with an average of 14.000 bdp. Another important offshore discovery by TotalFinaElf is in Block 17, in the Girasol camp, to the northeast of Luanda (at 4.500 feet deep). It is hoped that this camp, with reserves of thousands of millions of barrels, will produce close to 200.000 bdp until the end of this year. BP Amoco, announced their discovery in Block 18 with reserves of 500 million barrels. Exxon/Mobil, in Block 15 will exploit the thousands of millions of barrels that it has discovered. Sonangol, the state company, controls the downstream industry, of refining, distribution and commercialisation. The plans now are to develop the new refinery in Lobito with a capacity of 200.000 bdp. The South African Development Community (SADC) exports the majority of products derived from oil. Together with Texaco, Sonangol has developed a liquid gas project (LNG) to transform natural gas for domestic use. It is hoped that the project will be up and running by the year 2005. Besides Chevron/Texaco and TotalFinaElf, there are more than 30 companies interested in investing in Angola. Among these are BP/AMOCO, Exxon/Mobil, Petrogal and AGIP. Source: The New York Times, Monday, March 19, 2001 (special supplement) WEST PAPUA ============ The recent increase in tension in West Papua, punctuated by the murder of political prisoners and the arrest of independence leaders, has not stopped the transnational companies continuing with plans to exploit the territory´s natural resources. The giant Tangguh gas fields in off the north western coast, contain an estimated 20 trillion cubic feet of gas. The British American merger BP/Amoco (BP) plans to start production in 2005 and is seeking sales contracts in China. BP plans to build a liquefied natural gas receiving terminal in Shenzen, Hong Kong, if contracts are agreed. British Gas plc is also an investor in Tangguh, whose 2 fields are being developed under

production sharing contracts with Pertamina. BP also has a 50 percent stake in Indonesia´s largest coal mining company PT Kaltim Prima Coal in Sangatta, East Kalimantan. The mine was forced to close during a labor dispute last year (see DTE 47:6). President Wahid has promised that the Tangguh project will benefit the people of West Papua, and has said the environment should be protected during the project´s development. In September last year, regional Bapedal chief Ali Kastella said the Tangguh project threatened thousands of hectares of mangroves forests in Berau Bay and said the company needed to consult local communities when planning exploration activities. Earlier in the year, it was reported that his office had called for a halt to further exploration at the project pending the results of an environmental impact analysis (see DTE 45:15). EIA pilot project Indonesia’s environment minister, Sonny Keraf, has said that the Tangguh gas project will be a test-case for a new law which gives local people a legal voice in every proposed development project. Tangguh would be the “pilot project” for the law on community participation in environmental impact assessments, which was due to come into effect in November last year. According to Keraf´s deputy, Ali Jumardi, local governments via regional and district environmental impact agencies (Bapedalda) would facilitate dialogue between developers and local people. Arbitration of disputes would be the responsibility of a “new mechanism” set out in a separate government regulation. The EIA process has been mostly ignored or treated as a formality by developers until now. Local governments have almost always acted as agents of developers, often employing the security forces to subdue opposition to projects. It is unlikely that any new laws or regulations will have positive consequences for local communities, unless they include the right of local people to veto projects in their areas. (Indonesian Observer 21&22/Sep/00; Jakarta Post 12/Jul/00, 9/Dec/00) ========== COLOMBIA ========== As seven new drilling projects get underway in Colombia, which is still -by international and even regional standards- a relatively unexplored country, the president of state Ecopetrol, Alberto Calderon Zuleta, says that the prospects for a major oil find remain very positive. Calderon may believe that the power of positive thinking and his optimistic words will help make this vision come true: Colombia needs it -- badly. Oil exports accounted for 35% of Colombia's 2000 revenues, making this commodity -now that the coffee market is in a slump- the country's leading export. But reserves are running down fast, and the country is set to become a new importer of oil as early as 2004. Colombian oil output fell last month by129,000 barrels per day to 560,400 b/d, a 19% drop from year-ago levels, Ecopetrol said Tuesday (OD June13,p10). "... By the end of 2002 we expect -with a little luck- to have found something in at least a couple of the seven [projects currently underway...", Calderon told reporters.

According to Calderon, the potential crude reserves of the current projects could be in the neighborhood of 1 billion barrels. Calderon put the risk of not making a find at about 20%. Exploratory investments in Colombia, Latin America's third-largest crude oil exporter, dried up during the last decade, due to high taxes and unattractive contract conditions imposed by state Ecopetrol. These terms were sweetened in 1999, a factor that has helped draw wary investors. However, public safety remains a key issue that has dissuaded majors from establishing a foothold in Colombia. Guerrilla sabotage has grown increasingly just as Colombian President Andres Pastrana has tried -up to now in vain- to forge a lasting peace with the major insurrection movements. Colombia's second-busiest crude oil pipeline, the Caño Limón-Covenas line, has been paralyzed since February due to bombings by the leftist National Liberation Army. Indeed, Ecopetrol blamed the May drop in oil output on the attacks. Production lost from Caño Limón so far this year has totaled about13.5 million bbl. Despite the violence, Ecopetrol signed a record 32 association contracts in 2000 and hopes to sign a further 30 this year. The seven projects, which Calderon said will get underway during the second half of 2000, are being operated by a slew of majors, including BP, the Spanish-Argentine Repsol-YPF, Occidental Petroleum, France's Total Fina Elf, and Hocol, a unit of Saudi Arabia's Nimir Petroleum. Juan Pablo Toro ========================= BEYOND THE TROPICS ========================= GAS NATURAL RENEWS CONTRACT WITH ARGELIA, WHILE THE PEOPLE OF BEREBER ARE STILL THREATENED AND KILLED. Gas Natural has been extracting from Argelia since the 70s 59% of the gas that is consumed in Spain. It does not pass 60% because the law of hydrocarbons does not permit it to. At any rate, Gas Natural, in secrecy, has renewed its contract with Argelia until the year 2021. By doing this, the government of Argel is being strengthened in times of political instability, which has been caused by the events against the Bereber population in the south of the country. At least 40 people have died in the confrontations that have been registered since April 21st in diverse localities in Cabilia (northeast of Argelia). The confrontations have gone on day after day during the months of April and May in this region, and the Berber population has been abused by central political powers due to their cultural and linguistic identity. The conflict started when a bullet in a commissary killed a young student. The protesters assure that the youth, Massinisa Guermuh, was killed with shots from the

police, although local authorities assure that his death was caused by an accidental shot from an agent’s pistol. Source: El País, April-May 2001 For more information: An eye on Repsol No. 16 ot@cascall.org ======= POETRY ======= IDYLL Several fat rats had gathered at the river shore to suck his blood The boy draws ´em away with a big palm The thankful river rocks the boy in its arms. ============================================================ Is it true that you know not where to go, nor what you want? Swallow up flies racemes rose skinned snakes bunches of wild honey. Water boils in your throat blend what you find though nothing fills you up. Play, stone, tear off you have lost manners and your way River –my eyes hurt and my belly. What could mother do such your delirium and destruction? My town, mi home. You take the brown donkey the shadow-less palm tree the full cemetery? Are you without mother or newly born sea stretching the most of your hunger and greed?

River, come back to yourself I don’t want you that big Emilio Adolfo Westphalen Lima