• 10 mins Kuwait Greenlights Game-Changing Gas Fields Project After Years of Delay
  • 40 mins Minnesota Begins Public Hearings On Enbridge Line 3 Project
  • 1 hour China Looks To Create National Natural Gas Pipeline Firm
  • 2 hours Total Not In A Rush To Sell Canadian Oil Sands Assets
  • 2 hours DOE Seeks To Boost Usage Of Carbon Capture Tech
  • 3 hours Taxpayers Likely To Pick Up The Growing Tab For DAPL Protests
  • 6 hours WTI At 7-Month High On Supply Optimism, Kurdistan Referendum
  • 12 hours Permian Still Holds 60-70 Billion Barrels Of Recoverable Oil
  • 17 hours Petrobras Creditors Agree To $6.22 Billion Debt Swap
  • 21 hours Cracks Emerge In OPEC-Russia Oil Output Cut Pact
  • 1 day Iran Calls On OPEC To Sway Libya, Nigeria To Join Cut
  • 1 day Chevron To Invest $4B In Permian Production
  • 1 day U.S.-Backed Forces Retake Syrian Conoco Gas Plant From ISIS
  • 1 day Iraq Says Shell May Not Quit Majnoon Oilfield
  • 4 days Nigerian Oil Output Below 1.8 Million BPD Quota
  • 4 days Colorado Landfills Contain Radioactive Substances From Oil Sector
  • 4 days Phillips 66 Partners To Buy Phillips 66 Assets In $2.4B Deal
  • 4 days Japan Court Slams Tepco With Fukushima Damages Bill
  • 4 days Oil Spills From Pipeline After Syria Army Retakes Oil Field From ISIS
  • 4 days Total Joins Chevron In Gulf Of Mexico Development
  • 4 days Goldman Chief Urges Riyadh To Get Vision 2030 Going
  • 4 days OPEC Talks End Without Recommendation On Output Cut Extension
  • 5 days Jamaican Refinery Expansion Stalls Due To Venezuela’s Financial Woes
  • 5 days India In Talks to Acquire 20 Percent Of UAE Oilfield
  • 5 days The Real Cause Of Peak Gasoline Demand
  • 5 days Hundreds Of Vertical Oil Wells Damaged By Horizontal Fracking
  • 5 days Oil Exempt In Fresh Sanctions On North Korea
  • 5 days Sudan, South Sudan Sign Deal To Boost Oil Output
  • 5 days Peruvian Villagers Shut Down 50 Oil Wells In Protest
  • 5 days Bay Area Sues Big Oil For Billions
  • 6 days Lukoil Looks To Sell Italian Refinery As Crimea Sanctions Intensify
  • 6 days Kurdistan’s Biggest Source Of Oil Funds
  • 6 days Oil Prices On Track For Largest Q3 Gain Since 2004
  • 6 days Reliance Plans To Boost Capacity Of World’s Biggest Oil Refinery
  • 6 days Saudi Aramco May Unveil Financials In Early 2018
  • 6 days Has The EIA Been Overestimating Oil Production?
  • 6 days Taiwan Cuts Off Fossil Fuels To North Korea
  • 6 days Clash In Oil-Rich South Sudan Region Kills At Least 25
  • 6 days Lebanon Passes Oil Taxation Law Ahead Of First Licensing Auction
  • 7 days India’s Oil Majors To Lift Borrowing To Cover Dividends, Capex
Alt Text

Libyan Oil May Be Slipping Out Of Putin’s Reach

Last Friday, the Benghazi Defense…

Alt Text

Who Gets Control Of Libya’s Oil As The Guns Go Silent?

The Libyan National Oil Corporation…

John Daly

John Daly

Dr. John C.K. Daly is the chief analyst for Oilprice.com, Dr. Daly received his Ph.D. in 1986 from the School of Slavonic and East European…

More Info

India Nervous About Increasing West African Piracy

After China, India is Asia’s largest rising energy importer. According to the U.S. government’s Energy Information Administration, “India is the fourth largest energy consumer in the world after the United States, China, and Russia. India was the fourth largest consumer of oil and petroleum products in the world in 2011, after the United States, China, and Japan.” While Indian oil imports still primarily come from the Middle East, like its competitor China, New Delhi is increasingly focusing on Africa, from where the news is most decidedly mixed.

According to the EIA’s country analysis for India, “The second biggest source of imports is Africa (17 percent), with the majority of that oil coming from Nigeria.”

Which presents a problem – piracy, which in Africa is shifting increasingly from east to west.

Somalia, which has captured the bulk of piracy headlines for years, has seen its problems diminish, thanks to intense foreign naval efforts, in Somalia last year attacks declined. In 2012 there were 297 pirate attacks and 28 hijackings worldwide, according to the International Maritime Bureau’s Piracy Reporting Center, with 75 incidents attributed to Somali pirates, who captured 250 hostages.

But the problem has simply migrated from East African to West African waters.  The IMB reported, “Worldwide, the IMB Piracy Reporting Centre (PRC) recorded 138 piracy incidents in the first six months of 2013, compared with 177 incidents for the corresponding period in 2012… In the Gulf of Guinea, in addition to a rise in piracy and armed robbery – 31 incidents so far this year, including four hijackings – IMB reports a surge in kidnappings at sea and a wider range of ship types being targeted. This is a new cause for concern in a region already known for attacks against vessels in the oil industry and theft of oil from tankers.”

IMB director Pottengal Mukundan noted, “There has been a worrying trend in the kidnapping of crew from vessels well outside the territorial limits of coastal states in the Gulf of Guinea. In April 2013, nine crew members were kidnapped from two container vessels, one of which was 130 nautical miles from the coast. Pirates have used motherships, some of which were smaller off-shore supply vessels hijacked by pirates to conduct the attacks. There continues to be significant under-reporting of attacks – a phenomenon highlighted by the IMB year on year. This prevents meaningful response by the authorities and endangers other vessels sailing into the area unaware of the precise nature of the threat.”

Beginning in 2011 piracy in the Gulf of Guinea escalated from “snatch and grab” armed robberies to more high profile and sophisticated hijackings and cargo thefts. In response to the rising anarchy, last year the London-based Lloyd's Market Association insurers listed Nigeria, Benin and surrounding waters in the same risk category as Somalia.

India’s response?

According to senior government officials speaking on condition of anonymity, New Delhi is preparing to increase its training and cooperation with West African navies to bolster abilities to battle pirates. A senior official noted, “We’re ready to offer them any help they need. The Somalia piracy is decreasing; it’s in the Gulf of Guinea that we need to cooperate with allies to tackle this menace.”

It will be a no insubstantial task, as the Gulf of Guinea nations comprise Ivory Coast, Ghana, Togo, Benin, Nigeria, Cameroon, Equatorial Guinea, Gabon, Congo and the northern stretch of Angola, from where Indian and tankers carrying West African oil set sail to India. Of these nations, the only ones with any substantive maritime capability are Nigeria and Ghana, leaving vast swathes of coastline essentially undefended.

But the Indian navy will not be starting from scratch. Beginning in 2011, India sent its naval ships to escort vessels,  both Indian and foreign, to the Gulf of Aden in cooperation with the U.S., the Russian Federation, EU, China, Iran and other nations to suppress Somali piracy.

But, given the Somali experience, the major question before Delhi is whether it has the finances and stomach to quash definitely a problem that has existed since men first took to the sea, especially if it has to pursue the goal of protecting its energy assets largely alone.

By. John C.K. Daly of Oilprice.com




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News