• 4 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 7 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 15 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 8 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 11 hours Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 15 mins Visualizing How Much Oil Is In An Electric Vehicle (Hint: a heckuva lot)
  • 1 hour Look at the LONGER TERM bigger picture of international oil & gas. Ignore temporary hiccups.
  • 4 mins Theresa May to Step Down
  • 11 hours Total nonsense in climate debate
  • 12 hours IRAN makes threats, rattles sabre . . . . U.S. makes threats, rattles sabre . . . . IRAQ steps up and plays the mediator. THIS ALLOWS BOTH SIDES TO "SAVE FACE". Then serious negotiations start.
  • 14 hours Will Canada drop Liberals, vote in Conservatives?
  • 1 day IMO 2020 could create fierce competition for scarce water resources
  • 15 hours Trump needs to educate US companies and citizens on Chinese Communist Party and People's Liberation Army. This is real ECONOMIC WARFARE. To understand Chinese warfare read General Sun Tzu's "Art of War" . . . written 500 B.C.
  • 15 hours Canada's Uncivil Oil War : 78% of Voters Cite *Energy* as the Top Issue
  • 7 hours Australian Voters Reject 'Climate Change' Politicians
  • 11 hours Apple Boycott in China
Alt Text

New Middle East Proxy War Could Jolt Oil Prices

Iran’s oil exports have fallen…

Alt Text

The Oil Kingdom Enters A New Era

Saudi Arabia and Mohammed bin…

Deirdre Tynan

Deirdre Tynan

Deidre is a contributor at Eurasia Net

More Info

Trending Discussions

Pentagon Fuel Supply Agreement Could Strain Relationship With Kyrgyzstan

In a move that could strain Washington’s relationship with Kyrgyzstan, a key Central Asian ally, the Pentagon opted November 3 to award a new fuel-supply contract to a company that is already at the center of a US congressional probe.

The Defense Logistics Agency (DLA) gave Mina Corp “a maximum $315,180,960 fixed price with economic price adjustment, requirements-type contract for jet fuel” at the Manas Transit Center. Mina Corp beat out eight other bidders, according to the DLA award. “The date of performance completion is Nov. 2, 2011,” the Pentagon announcement stated.

The Manas base near Bishkek is a key logistical hub for the US-led war in Afghanistan. Gibraltar-registered Mina Corp, an affiliate of the previous contract holder, Red Star, has supplied TS-1 jet fuel to Manas since 2007.

Representatives of Mina Corp did not have any immediate comment about the Pentagon’s contract decision.

In July 2009, Mina Corp secured a three-year supply contract worth up to $730.9 million. But following the April collapse of former president Kurmanbek Bakiyev’s administration, coupled with the launch of the congressional probe in Manas contracting practices, the DLA chose not to exercise an annual option with Mina Corp. On June 9, 2010, a new tender for the supply of jet fuel was opened. Mina Corp, however, has continued to supply fuel the base on a month-to-month basis.

It was not immediately clear how Kyrgyz officials in Bishkek will react to Mina Corp’s win. Sources told EurasiaNet.org that Pentagon officials were prepared for the award to be “misinterpreted” and “unpopular.” But a DC insider warned the Pentagon has underestimated the extent of Kyrgyz antipathy towards Mina Corp.

“The question is whether Kyrgyzstan is prepared to allow [Mina Corp] to operate on its territory. I suspect the answer will be a simple ‘No,’” he said.

Some powerful Kyrgyz politicians, including the Social Democratic Party chairman, Almazbek Atambayev, and the Respublika Party leader, Omurbek Babanov, are noted opponents of Mina Corp’s fuel supply role. Both Atambayev and Bananov may soon occupy influential positions in the Kyrgyz cabinet, depending on the outcome of coalition talks in Bishkek.

Interim President Roza Otunbayeva has publicly denounced Mina Corp, and is on record as wanting a significant change in fuel-supply arrangements at Manas. Otunbayeva reportedly lobbied US President Barack Obama to authorize a new fuel-supply arrangement at the base, one involving a joint Kyrgyz-Russian entity.

On September 24, the DLA’s fuel tender was amended to give the Pentagon agency the ability to grant “by other means” 20 percent of the supply contract to a state-owned Kyrgyz enterprise in partnership with Russia’s GazpromNeft, beginning in February 2011.

The Kyrgyz-Russian entity’s supply share could rise to 50 percent by July 2011, the amendment added.

By. Deirdre Tynan

Originally published by EurasiaNet.org




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment

Leave a comment




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