Follow The Money!!

- New Pipeline To Tap The
Caspian Sea Gas Bonanza

From Jim Marrs jmarrs@...
September 18, 2001

"The 48-inch diameter pipeline will extend 790 miles (1,271
kilometers) from the Afghanistan-Turkmenistan border, generally
follow the Herat-to-Kandahar Road THROUGH AFGHANISTAN (emphasis
added -ed.), cross the Pakistan border in the vicinity of Quetta, and
terminate in Multan, Pakistan, where it will tie into an existing
pipeline system." Hi Jeff, They say follow the money. Well, here's
the money trail. Everyone from Hitler on down has wanted the Caspian
Sea oil and with the fall of communism, the international bankers
finally got some control over this resource. The problem is that to
get this oil to the West requires a pipeline that would have to go
through Tajikistan, Afghanistan and Pakistan. But the fundamentalist
Muslim governments of this places won't play ball so...they get
another agent like Ho Chi Minh, in this case Osama bin-Laden, who was
funded and encouraged by our CIA to fight the Russians in
Afghanistan, to be the Bugagoo, either by instigation or merely by
allowing his attacks. Then, in the ensuing unthinking surge of
patriotism, either US troops or a UN coalition moves into the area to
wipe out the "terrorists" and install "democratically aligned"
governments and, bingo, the obstacles to the Central Asia Pipeline
disappear and the profit line is increased at only the cost of
several thousand human lives, unfortunate but necessary in this age
of overpopulation. It's a grander replay of the Gulf War but it's
still about oil, a commodity dear to the heart of the Bush family.

Consortium Formed To Build Central Asia Gas Pipeline

October 27, 1997 ASHGABAT, Turkmenistan, - Six international
companies and the Government of Turkmenistan formed Central Asia Gas
Pipeline, Ltd. (CentGas) in formal signing ceremonies here Saturday.
The group is developing a project to build a 790-mile (1,271-
kilometer) pipeline to link Turkmenistan's abundant proven natural
gas reserves with growing markets in Pakistan. The group is also
considering an extension of the line to the New Delhi area in
India. "This is a truly significant step in the development of this
project," said John F. Imle, Jr., president of Unocal Corporation .
Unocal was appointed by the Government of Turkmenistan to lead the
project development activities and form the gas pipeline consortium.
A Unocal subsidiary will serve as development manager for
CentGas. "The interest shown by major international companies
underscores both the attractiveness of the proposed pipeline and the
significant economic benefits it can bring to the region. This
project could be the foundation for a new commerce corridor for the
region -- often referred to as the Silk Road for the 21st century.
The CentGas consortium will initially include the following
companies, either directly or through affiliates: Unocal Corporation,
46.5 percent; Delta Oil Company Limited (Saudi Arabia), 15 percent;
the Government of Turkmenistan, 7 percent; Indonesia Petroleum, LTD.
(INPEX) (Japan), 6.5 percent; ITOCHU Oil Exploration Co., Ltd.
(CIECO) (Japan), 6.5 percent; Hyundai Engineering & Construction Co.,
Ltd. (Korea), 5 percent; and the Crescent Group (Pakistan), 3.5
percent. RAO Gazprom (Russia) has indicated an interest in signing
the consortium agreements formalizing a 10 percent share in the
project in the near future. The proposed pipeline will carry natural
gas from the Dauletabad Field, in southeastern Turkmenistan at a rate
of up to 2 billion cubic feet per day (20 billion cubic meters per
year). The Dauletabad Field has independently certified reserves of
more then 25 trillion cubic feet (708 billion cubic meters). The
Government of Turkmenistan has guaranteed deliverability of 25
trillion cubic feet (708 billion cubic meters) of natural gas
exclusively for the Central Asia Gas Pipeline. Much or all of this
gas is expected to come from the Dauletabad Field. The inaugural
memorandum of understanding between the governments of Turkmenistan
and Pakistan for the CentGas project was signed in March 1995. "The
formation of the consortium is another major milestone achieved in
accordance with the requirements of protocols and agreements
previously signed with the Governments of Turkmenistan and Pakistan,"
said Marty Miller, Unocal Corporation vice president responsible for
new ventures in Central Asia and Pakistan. Miller pointed out that
the project still faces significant economic, political and
commercial challenges, such as finalizing mutually acceptable
commercial agreements and agreements with transit countries. "This
project has exceptionally sound economic fundamentals, given the
presence of proven gas reserves in Turkmenistan and the market needs
of Pakistan and India. The Dauletabad Field has produced well over 2
billion cubic feet per day in the past and is capable of producing
that volume today. With the right development program, the Field will
continue to be able to produce natural gas at this rate long into the
future. No other import project can provide such volumes of natural
gas to these markets at a lower price." The proposed natural gas
pipeline would stretch from the Turkmenistan/Afghanistan border in
southeastern Turkmenistan to Multan, Pakistan (790 miles, 1,271
kilometers), with a 400-mile (640-kilometer) extension to India under
consideration. Estimated cost of the project is US$1.9 billion for
the segment to Pakistan and an additional US$600 million for the
extension to India. This news release contains forward-looking
information, including projections of future business plans and
potential capital expenditures. Actual results could differ
materially from these projections. CentGas Consortium Members:
Unocal Corporation (U.S.), 46.5 percent Founded over 100 years ago,
Unocal is one of the world's leading energy resource and project
development companies providing regional integrated energy solutions.
Unocal has reserves of more than 9.8 trillion cubic feet of natural
gas equivalent (1.6 billion barrels of oil equivalent) and major oil
and gas production activities in Asia and the U.S. Gulf of Mexico.
Delta Oil Company Limited (Saudi Arabia), 15 percent Delta Oil
Company Limited, a private Saudi-owned company, was founded by its
Chairman and Chief Executive Officer, Mr. Badr M. Al-Aiban. Mr. Al-
Aiban established the original Delta entity in Saudi Arabia in 1978,
and its activities have expanded significantly since its inception.
Today, Delta and its affiliates comprise a diversified group of
companies involved in the energy industry, real estate development,
food processing and packaging, soft drink bottling and distribution,
agriculture and manufacturing. The company's operations extend to
Central Asia, South East Asia and other countries in the Middle East.
Delta has developed a number of strategic alliances in the oil and
gas industry. As a member of the Azerbaijan International Operating
Company (AIOC) and the North Absheron Operating Company Limited
(NAOC), Delta and its affiliates are involved in exploring and
developing oil fields in Azerbaijan, as well as other Central Asian
countries. The Government of Turkmenistan, 7 percent Since
declaring its independence from the USSR on October 27, 1991,
Turkmenistan has looked forward to increasing the economic strength
of the new state. The country has strived to build on its traditions,
values and history to form a political and economic system capable of
increasing the well-being of its people, and strengthening the
sovereignty of Turkmenistan. The leadership of Turkmenistan has met
the challenge of reform head on, and has established many channels
for swift economic development. As an independent state, Turkmenistan
has much to offer to the Central Asian region and the international
community. By effectively using its natural resources, continuing on
a path of economic reform as can be seen in the agricultural
industry, and promoting its economic potential to attract foreign
investment, Turkmenistan can be assured of decades of successful
economic growth. The government believes that by seeking
international investment, technological and management support for
its country, Turkmenistan can play a major role as the economic
catalyst for the Central Asian region, and join the world leaders in
the distribution of oil and gas. Indonesia Petroleum, LTD. (INPEX)
(Japan), 6.5 percent Indonesia Petroleum, LTD. (INPEX), a Tokyo-
based company, has been engaged in the exploration and development of
petroleum resources, mainly in Indonesia, since 1966 in order to
ensure a continued stable supply of energy resources to Japan. With
its core activity area in Indonesia, INPEX is expanding its
activities in East Asia, Oceania, CIS, the Middle East and Africa.
INPEX and its subsidiaries are currently producing 280,000 BOEPD
equity oil and gas in Indonesia, Australia and UAE. ITOCHU Oil
Exploration Co., Ltd. (CIECO) (Japan), 6.5 percent ITOCHU Oil
Exploration Co., Ltd. (CIECO) was formed in 1972 and is now involved
in the exploration, development and production of hydrocarbons in
Indonesia, U.K. North Sea, Australia, Pakistan, CIS Countries, Yemen,
Oman and Gabon. CIECO is the core company responsible for all
Hydrocarbon Exploration and Production activities within the
subsidiaries and associates of ITOCHU Corporation, the largest
trading company in Japan. With maximum utilization to ITOCHU's
worldwide network, CIECO is well placed to continue to expand its
foreign activities in the future. Hyundai Engineering & Construction
Co., Ltd. (Korea), 5 percent Hyundai Engineering & Construction Co.,
Ltd. was established in 1947, and its major role was rebuilding
Korea's infrastructure. Growing rapidly during the early 1960s,
Hyundai built dams, bridges, buildings and tunnels, as well as
industrial plants that were desperately needed. Since it launched
into the international market in 1968, Hyundai has taken a place
among top global general contractors, with approximately US$32
billion construction orders through 1996. As the core company of
Hyundai Business Group, Hyundai has set the pace for the Hyundai
Business Group which is now a US$87 billion multi-national
conglomerate specializing in engineering and construction,
automobiles, shipbuilding, robotics, electronics, petrochemicals,
aerospace and trading. The Crescent Group (Pakistan), 3.5 percent
The Crescent Group, in business for more than 50 years, is the
premier industrial and financial conglomerate in Pakistan. More than
35 independent companies operating across Pakistan form the nucleus
of the group and are leaders in textiles, jute, sugar, engineering,
steel, investment banking, insurance, leasing and software
development. The Crescent Group employs over 15,000 people and
contributes to one percent of GNP of the country and over two percent
of market capitalization of Pakistan. Strategic alliances have helped
position the Crescent Group as a leader in its core businesses, such
as textile and textile made-ups. Crescent is in partnership with some
of the most well-known corporations from the United States and
Europe. The Group puts heavy emphasis on keeping its projects
environment-friendly, promotes education, and spends considerably on
the development of human talent in safe working conditions. Project
Overview International Pipeline Consortium Six international
companies and the Government of Turkmenistan are forming an
international pipeline consortium, Central Asia Gas Pipeline, Ltd.
(CentGas) to develop a natural gas pipeline that will link
Turkmenistan's vast natural gas reserves with the growing markets of
Pakistan and possibly India. This major new source of fuel will
supplement indigenous natural gas supply. An efficient, clean-burning
fuel, natural gas can be economically and safely transported by
pipeline over long distances, and priced competitively with alternate
fuels. The Resource Dauletabad Field is one of the largest gas
fields in the world. DeGolyer & MacNaughton, an internationally
recognized petroleum engineering firm, has thoroughly evaluated the
field's reserves. These evaluations clearly show that the field's
resources are adequate for project needs, assuming production rates
of roughly 1.5 billion cubic feet of gas per day (15 billion cubic
meters of gas per year) for 30 years or more. The Government of
Turkmenistan has guaranteed deliverability of 25 trillion cubic feet
(709 billion cubic meters) of natural gas exclusively for this
project. Much or all of this gas is expected to come from the
Dauletabad Field. The Market Forecasts based on reasonable gas
purchase, sales price and other assumptions show sufficient demand
for the imported gas at prices that support the project's economic
viability. Market analyses indicate that Pakistan's electric power
generation market will be the main consumer of the imported gas. The
Route The 48-inch diameter pipeline will extend 790 miles (1,271
kilometers) from the Afghanistan-Turkmenistan border, generally
follow the Herat-to-Kandahar Road through Afghanistan, cross the
Pakistan border in the vicinity of Quetta, and terminate in Multan,
Pakistan, where it will tie into an existing pipeline system.
Turkmenistan will construct a pipeline that will link with the
CentGas line at the border and stretch approximately 105 miles (169
kilometers) to the Dauletabad Field. A potential 400-mile (644-
kilometer) extension from Multan to New Delhi also is under
consideration. Estimated cost of the project is US$1.9 billion for
the segment to Pakistan, and an additional US$600 million for the
extension to India. Inter-Government Support The project enjoys
strong support from the governments and leadership of the three
countries directly involved and has also attracted the interest of
other countries. Turkmenistan and Pakistan have demonstrated inter-
government support through various memorandums of understanding.
Regional Benefits The project offers numerous long- and short-term
benefits to the region. It will link plentiful supplies of clean-
burning natural gas with growing regional markets, employ thousands
of local people, foster regional cooperation, and enhance trade,
transportation and communication. The development of pipeline-related
infrastructure also will create opportunities for economic growth in
other industries. In addition to regional advantages, the pipeline
offers specific benefits to the countries involved. Turkmenistan will
reach new markets with its plentiful gas reserves, while Pakistan
gains a reliable source of clean-burning fuel to drive its economic
growth. Afghanistan will earn extensive economic benefits from the
pipeline, both during construction and over the life of the project.
Source: Central Asia Gas Pipeline, Ltd.

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