Unocal and the Afghanistan pipeline

R

Raymond

Guest
Unocal and the Afghanistan pipeline
Richard Armitage, the current Deputy Defense Secretary, was a Iran-
Contra player in Unocal's employ
by Larry Chin
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Centre for Research on Globalisation (CRG), globalresearch.ca ,
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Part One of a two-part series Players on a rigged grand chessboard:
Bridas,

After the fall of the Soviet Union, Argentine oil company Bridas, led
by its ambitious chairman, Carlos Bulgheroni, became the first company
to exploit the oil fields of Turkmenistan and propose a pipeline
through neighboring Afghanistan. A powerful US-backed consortium
intent on building its own pipeline through the same Afghan corridor
would oppose Bridas' project.
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The Coveted Trans-Afghan Route

Upon successfully negotiating leases to explore in Turkmenistan,
Bridas was awarded exploration contracts for the Keimar block near the
Caspian Sea, and the Yashlar block near the Afghanistan border. By
March 1995, Bulgheroni had accords with Turkmenistan and Pakistan
granting Bridas construction rights for a pipeline into Afghanistan,
pending negotiations with the civil war-torn country.

The following year, after extensive meetings with warlords throughout
Afghanistan, Bridas had a 30-year agreement with the Rabbani regime to
build and operate an 875-mile gas pipeline across Afghanistan.

Bulgheroni believed that his pipeline would promote peace as well as
material wealth in the region. He approached other companies,
including Unocal and its then-CEO, Roger Beach, to join an
international consortium.

But Unocal was not interested in a partnership. The United States
government, its affiliated transnational oil and construction
companies, and the ruling elite of the West had coveted the same oil
and gas transit route for years.

A trans-Afghanistan pipeline was not simply a business matter, but a
key component of a broader geo-strategic agenda: total military and
economic control of Eurasia (the Middle East and former Soviet Central
Asian republics). Zbigniew Brezezinski describes this region in his
book "The Grand Chessboard-American Primacy and Its Geostrategic
Imperatives" as "the center of world power." Capturing the region's
oil wealth, and carving out territory in order to build a network of
transit routes, was a primary objective of US military interventions
throughout the 1990s in the Balkans, the Caucasus and Caspian Sea.

As of 1992, 11 western oil companies controlled more than 50 percent
of all oil investments in the Caspian Basin, including Unocal, Amoco,
Atlantic Richfield, Chevron, Exxon-Mobil, Pennzoil, Texaco, Phillips
and British Petroleum.

In "Taliban: Militant Islam, Oil and Fundamentalism in Central
Asia" (a definitive work that is a primary source for this report),
Ahmed Rashid wrote, "US oil companies who had spearheaded the first US
forays into the region wanted a greater say in US policy making."

Business and policy planning groups active in Central Asia, such as
the Foreign Oil Companies Group operated with the full support of the
US State Department, the National Security Council, the CIA and the
Department of Energy and Commerce.

Among the most active operatives for US efforts: Brezezinski (a
consultant to Amoco, and architect of the Afghan-Soviet war of the
1970s), Henry Kissinger (advisor to Unocal), and Alexander Haig (a
lobbyist for Turkmenistan), and Dick Cheney (Halliburton, US-
Azerbaijan Chamber of Commerce).

Unocal's Central Asia envoys consisted of former US defense and
intelligence officials. Robert Oakley, the former US ambassador to
Pakistan, was a "counter-terrorism" specialist for the Reagan
administration who armed and trained the mujahadeen during the war
against the Soviets in the 1980s. He was an Iran-Contra conspirator
charged by Independent Counsel Lawrence Walsh as a key figure involved
in arms shipments to Iran.

Richard Armitage, the current Deputy Defense Secretary, was another
Iran-Contra player in Unocal's employ. A former Navy SEAL, covert
operative in Laos, director with the Carlyle Group, Armitage is
allegedly deeply linked to terrorist and criminal networks in the
Middle East, and the new independent states of the former Soviet Union
(Tajikistan, Uzbekistan, and Kyrghistan).

Armitage was no stranger to pipelines. As a member of the Burma/
Myanmar Forum, a group that received major funding from Unocal,
Armitage was implicated in a lawsuit filed by Burmese villagers who
suffered human rights abuses during the construction of a Unocal
pipeline. (Halliburton, under Dick Cheney, performed contract work on
the same Burmese project.)

Bridas Versus the New World Order

Much to Bridas' dismay, Unocal went directly to regional leaders with
its own proposal. Unocal formed its own competing US-led, Washington-
sponsored consortium that included Saudi Arabia's Delta Oil, aligned
with Saudi Prince Abdullah and King Fahd. Other partners included
Russia's Gazprom and Turkmenistan's state-owned Turkmenrozgas.

John Imle, president of Unocal (and member of the US-Azerbaijan
Chamber of Commerce with Armitage, Cheney, Brezezinski and other
ubiquitous figures), lobbied Turkmenistan's president Niyazov and
prime minister Bhutto of Pakistan, offering a Unocal pipeline
following the same route as Bridas.'

Dazzled by the prospect of an alliance with the US, Niyazov asked
Bridas to renegotiate its past contract and blocked Bridas' exports
from Keimar field. Bridas responded by filing three cases with the
International Chamber of Commerce against Turkmenistan for breach of
contract. (Bridas won.) Bridas also filed a lawsuit in Texas charging
Unocal with civil conspiracy and "tortuous interference with business
relations." While its officers were negotiating with Pakistani and
Turkmen oil and gas officials, Bridas claimed that Unocal had stolen
its idea, and coerced the Turkmen government into blocking Bridas from
Keimir field. (The suit was dismissed in 1998 by Judge Brady G.
Elliott, a Republican, who claimed that any dispute between Unocal and
Bridas was governed by the laws of Turkmenistan and Afghanistan,
rather than Texas law.)

In October 1995, with neither company in a winning position,
Bulgheroni and Imle accompanied Niyazov to the opening of the UN
General Assembly. There, Niyazov awarded Unocal with a contract for a
918-mile natural gas pipeline. Bulgheroni was shocked. At the
announcement ceremony, Unocal consultant Henry Kissinger said that the
deal looked like "the triumph of hope over experience."

Later, Unocal's consortium, CentGas, would secure another contract for
a companion 1,050-mile oil pipeline from Dauletabad through
Afghanistan that would connect to a tanker loading port in Pakistan on
the coast of the Arabian Sea.

Although Unocal had agreements with the governments on either end of
the proposed route, Bridas still had the contract with Afghanistan.

The problem was resolved via the CIA and Pakistani ISI-backed Taliban.
Following a visit to Kandahar by US Assistant Secretary of State for
South Asia Robin Raphael in the fall of 1996, the Taliban entered
Kabul and sent the Rabbani government packing.

Bridas' agreement with Rabbani would have to be renegotiated.

Wooing the Taliban

According to Ahmed Rashid, "Unocal's real influence with the Taliban
was that their project carried the possibility of US recognition,
which the Taliban were desperately anxious to secure."

Unocal wasted no time greasing the palms of the Taliban. It offered
humanitarian aid to Afghan warlords who would form a council to
supervise the pipeline project. It provided a new mobile phone network
between Kabul and Kandahar. Unocal also promised to help rebuild
Kandahar, and donated $9,000 to the University of Nebraska's Center
for Afghan Studies. The US State Department, through its aid
organization USAID, contributed significant education funding for
Taliban. In the spring of 1996, Unocal executives flew Uzbek leader
General Abdul Rashid Dostum to Dallas to discuss pipeline passage
through his northern (Northern Alliance-controlled) territories.

Bridas countered by forming an alliance with Ningarcho, a Saudi
company closely aligned with Prince Turki el-Faisal, the Saudi
intelligence chief. Turki was a mentor to Osama bin Laden, the ally of
the Taliban who was publicly feuding with the Saudi royal family. As a
gesture for Bridas, Prince Turki provided the Taliban with
communications equipment and a fleet of pickup trucks. Now Bridas
proposed two consortiums, one to build the Afghanistan portion, and
another to take care of both ends of the line. By November 1996,
Bridas claimed that it had an agreement signed by the Taliban and
Dostum--trumping Unocal.

The competition between Unocal and Bridas, as described by Rashid,
"began to reflect the competition within the Saudi Royal family."

In 1997, Taliban officials traveled twice to Washington, D.C. and
Buenos Aires to be wined and dined by Unocal and Bridas. No agreements
were signed.

It appeared to Unocal that the Taliban was balking. In addition to
royalties, the Taliban demanded funding for infrastructure projects,
including roads and power plants. The Taliban also announced plans to
revive the Afghan National Oil Company, which had been abolished by
the Soviet regime in the late 1970s.

Osama bin Laden (who issued his fatwa against the West in 1998)
advised the Taliban to sign with Bridas. In addition to offering the
Taliban a higher bid, Bridas proposed an open pipeline accessible to
warlords and local users. Unocal's pipeline was closed--for export
purposes only. Bridas' plan also did not require outside financing,
while Unocal's required a loan from the western financial institutions
(the World Bank), which in turn would leave Afghanistan vulnerable to
demands from western governments.

Bridas' approach to business was more to the Taliban's liking. Where
Bulgheroni and Bridas' engineers would take the time to "sip tea with
Afghan tribesmen," Unocal's American executives issued top-down edicts
from corporate headquarters and the US Embassy (including a demand to
open talks with the CIA-backed Northern Alliance).

While seemingly well received within Afghanistan, Bridas' problems
with Turkmenistan (which they blamed on Unocal and US interference)
had left them cash-strapped and without a supply.

In 1997, they went searching for a major partner with the clout to
break the deadlock with Turkmenistan. They found one in Amoco. Bridas
sold 60 percent of its Latin American assets to Amoco. Carlos
Bulgheroni and his contingent retained the remaining minority 40
percent. Facilitating the merger were other icons of transnational
finance, Chase Manhattan (representing Bridas), Morgan Stanley
(handling Amoco) and Arthur Andersen (facilitator of post-merger
integration). Zbigniew Brezezinski was a consultant for Amoco.

(Amoco would merge with British Petroleum a year later. BP is
represented by the law firm of Baker & Botts, whose principal attorney
is James Baker, lifelong Bush friend, former secretary of state, and a
member of the Carlyle Group.)

Recognizing the significance of the merger, a Pakistani oil company
executive hinted, "If these (Central Asian) countries want a big US
company involved, Amoco is far bigger than Unocal."

Clearing the Chessboard Again

By 1998, while the Argentine contingent made slow progress, Unocal
faced a number of new problems.

Gazprom pulled out of CentGas when Russia complained about the anti-
Russian agenda of the US. This forced Unocal to expand CentGas to
include Japanese and South Korean gas companies, while maintaining the
dominant share with Delta.

Human rights groups began protesting Unocal's dealings with the brutal
Taliban. Still riding years of Clinton bashing and scandal mongering,
conservative Republicans in the US attacked the Clinton
administration's Central Asia policy for its lack of clarity and
"leadership."

Once again, violence would change the dynamic.

In response to the bombing of US embassies in Nairobi and Tanzania
(attributed to bin Laden), President Bill Clinton sent cruise missiles
into Afghanistan and Sudan. The administration broke off diplomatic
contact with the Taliban, and UN sanctions were imposed.

Unocal withdrew from CentGas, and informed the State Department "the
gas pipeline would not proceed until an internationally recognized
government was in place in Afghanistan." Although Unocal continued on
and off negotiations on the oil pipeline (a separate project), the
lack of support from Washington hampered efforts.

Meanwhile, Bridas declared that it would not need to wait for
resolution of political issues, and repeated its intention of moving
forward with the Afghan gas pipeline project on its own. Pakistan,
Turkmenistan and Afghanistan tried to push Saudi Arabia to proceed
with CentGas (Delta of Saudi Arabia was now the leader). But war and
US-Taliban tension made business impossible.

For the remainder of the Clinton presidency, there would be no
official US or UN recognition of Afghanistan. And no progress on the
pipeline.

Then George Walker Bush took the White House.
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Larry Chin writes for the Online Journal. He is a frequent CRG
Contributor. Copyright Larry Chin, Online Journal 2002. Reprinted
for Fair use only.
--------------------------------------------------------------------------------
The URL of this article is:
http://globalresearch.ca/articles/CHI203A.html
--------------------------------------------------------------------------------
CRG's Global Outlook, premiere issue on "Stop the War" provides
detailed documentation on the war and the "Post- September 11 Crisis."
Order/subscribe. Consult Table of Contents

http://globalresearch.ca/articles/CHI203A.html
 
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