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Turkey, Libya delimitation deal raises geopolitical tensions



Turkey has signed an agreement with Libya’s internationally recognised government on maritime boundaries in the Mediterranean Sea that could affect oil and gas exploration of other countries and heighten geopolitical tensions in the volatile region.

Ankara reportedly announced the accord and a deal on expanded security and military cooperation on 28 November.

Cyprus Natural Hydrocarbons Company CEO Charles Ellinas told New Europe on 29 November that the immediate impact of the Libya-Turkey agreement is on the Exclusive Economic Zones (EEZs) of Greece and Egypt.

Both Greece and Egypt, but also Cyprus, have already strongly condemned this as not being in agreement with international law, blatantly ignoring the rights of islands. Cairo dismissed the deal between Ankara and Tripoli as “illegal” and Athens said the accord is “completely unacceptable” because it ignored the presence of the Greek island of Crete between the coasts of Turkey and Libya and summoned Turkish Ambassador Burak Ozugergin to the Greek Foreign Ministry, Greece’s Kathimerini newspaper reported.

Cyprus’ Foreign Ministry on 29 November also condemned the deal. “Such a delimitation, if done, would constitute a serious violation of international law,” an announcement said, CyprusMail reported. “It would be contrary to the recognised principle of the convention on the law of the sea and the rights of islands’ EEZ,” it added. “With the distortion of the law of the sea and the counterfeiting of geography – Turkey will gain no footing in the Eastern Mediterranean,” it concluded.

Turkish Foreign Minister Mevlut Cavusoglu claimed that with the memorandum of understanding on the “delimitation of maritime jurisdictions Turkey is protecting “rights deriving from international law.” Reuters quoted him as saying that such accords could be agreed with other countries if differences could be overcome and that Ankara was in favour of “fair sharing” of resources, including off Cyprus.

Constantinos Filis, director of research at Institute of International Relations, told New Europe on 29 November Turkey’s illegal acts do not have legal repercussions. “Ankara’s attempt to agree with an unstable regime, which represents only part of Libya and therefore any deal it signs is uncertain, is a result of its isolation particularly from energy developments. Given that Turkey cannot agree with any other regional actor not only in the delimitation of the continental shelve or EEZ but also on how to stabilize the region and make it prosperous, it is left with no option but to approach a semi-rogue regime in order to showcase its regional power,” he said, adding that the message it wants to send is that any agreement or plan, including energy projects, cannot be fulfilled without Ankara’s consent.

Ellinas said the Libya-Turkey agreement indirectly affects Cyprus as well, as Turkey uses the same justification to delineate its ‘EEZ’ in the Mediterranean. “In effect, this ignores the entitlement of islands, including Cyprus and Crete, to an EEZ. Turkey defines its ‘EEZ’ to be coextensive with its continental shelf, based the relative lengths of adjacent coastlines, which completely disadvantages islands. It is a ‘unique’ interpretation not shared by any other country and not in accordance to the United Nations UNCLOS treaty, ratified by 167 countries but not Turkey,” Ellinas said.

He argued that Ankara appears to be picking and choosing, as it has used UNLOS principles to delineate its ‘EEZ’ in the Black Sea but does not accept them in the Mediterranean. “That may be challengeable under customary international law,” the Cyprus Natural Hydrocarbons Company CEO said.

“In all likelihood Turkey is doing this, as well as through its aggressive actions in carrying out exploration and drilling in Cyprus’ EEZ, in order to establish a position of strength from which eventually to enter into negotiations. But also as a reaction to the growing cooperation among almost all the other countries bordering the East Med. Turkey’s claims have no internationally recognised legal basis,” Ellinas said.

According to Filis, it is not clear whether there is an agreement – rather, it seems to be a preliminary step of expressing their intention to sign an agreement in the future. “But the most dangerous repercussion might be Turkey’s attempt to use it as a basis for projecting its supposed sovereign right to proceed with seismic activities in the area between Rhodes and Crete, especially in the southeastern part of the matter, thus confirming its strategic interest for the triangle between Crete, Kastellorizo and Cyprus,” he said.

Asked what could be the US and EU reaction to this agreement and how does it affect geopolitics in the region, Ellinas said both Washington and Brussels, and all other neighbouring countries in the East Med, recognise Cyprus’ and other countries’ rights to their EEZs declared in accordance to UNCLOS. He explained that as UNCLOS is not legally enforceable against a state that declines to sign and ratify it, the way to resolve this may eventually be through negotiations or arbitration on the basis of internationally recognised law and not through aggressive actions as Turkey is now pursuing.



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Cenovus joins Big Oil’s push into Big Data with Amazon and IBM deals


CALGARY — Big Oil is continuing its push into Big Data as Cenovus Energy Inc. has struck deals with tech giants Amazon Web Services and International Business Machines Corp. in an attempt to harness the power of cloud computing and lower its costs.

I don’t want this to be our grandfather’s industry

Ian Enright, Cenovus vice-president and chief information officer

“I don’t want to run our grandfather’s IT shop. I don’t want this to be our grandfather’s industry,” Ian Enright, Cenovus vice-president and chief information officer, said of the Calgary-based company’s plans to move its data out of two local data centres and into Amazon Web Services’ cloud following a deal struck over the summer.

The oil and gas producer is also planning to use Amazon’s cloud computing power to process and analyze its data and run other software programs in a move the company says will lower costs and allow it to better understand the “millions of data points” produced by its steam-based oilsands plants.

“Running machine learning and analytics against these things, as other industries have found, we really feel we’ll be able to enhance our operations and our efficiency,” Enright said.

“Right now, we’re just scratching the surface of the value of that,” he said.

Cenovus did not announce the deal with Amazon when it was struck, but described a broader push at the company to adopt new digital technologies and cut costs. In an interview Enright said the company ran a “bake-off” between cloud computing providers in late 2018 and picked Amazon this year for its big move to cloud computing.

In fact, a series of recent announcements indicate that more Calgary-based oil and gas companies are turning to cloud computing and big data in an attempt to modernize their businesses as the energy industry is trying to shed its reputation of being laggards when it comes to adopting digital technologies.

This month, oilsands rival Suncor Energy Inc. announced a similar partnership with Microsoft Corp. to migrate its data, computing power and processes to the Redmond, Wash.-based company’s cloud services and overhaul many aspects of its business.

While oil and gas companies have been pilloried for being digital laggards, large Calgary-based oil and gas companies have been quietly integrating new digital technologies in a bid to cut costs as they’ve been pressured by low oil prices, a lack of export pipelines.

In 2017, Calgary-based pipeline giant TC Energy Corp. began migrating its data and computer processing onto Amazon’s cloud services and that move to cloud computing is now 90 per cent complete, said Eric Gales, Amazon Web Services country manager for Canada.

TC Energy did not respond to a request for comment.

As we enter the next chapter of digital reinvention, the oil and gas industry is primed for transformation

Ross Manning, IBM’s vice-president, Canadian energy industry

Gales said he’s seen a major change in large companies’ attitudes towards digital technologies in the past four years and said the pace of adoption has increased dramatically.

“Four years ago, I was still having conversations with customers about ‘why?’ Now, it’s about ‘Where do I start?’” Gales said.

Now he said, many of the major companies in the Canadian oilpatch have a “cloud strategy” because “the case for the cloud has been made.”

At Cenovus, Enright said he believes the move to Amazon’s cloud computing service will allow it to run multiple data analyses concurrently — something it wasn’t able to do previously — and also cut down the amount of time it takes to analyze that data.

“When you go to the cloud to look at reservoir simulations or modelling our greenhouse gas improvements, things like that, we can model many things simultaneously,” Enright said.

For example, when Cenovus struck its $17.7-billion deal to buy ConocoPhillips Co.’s Canadian assets in 2017, it took the company nearly four months to acquire the computer servers it needed to process the data for the deal.

As the company integrates more of its processes into Amazon’s cloud, Enright said he’s confident the company could process the same volume and complexity of data in under three weeks.

On Monday, Cenovus also announced a deal with IBM in which the Armonk, New York-based tech giant will implement a suite of new software programs at the oilsands producer.

Enright said the technology will run in the cloud and is part of the broader push to cloud computing and faster decision making aided by digital technologies.

“As we enter the next chapter of digital reinvention, the oil and gas industry is primed for transformation, with companies turning to new platforms that will maximize the value of their assets, lower operating costs and continue to improve on their sustainable operations,” IBM’s vice-president, Canadian energy industry Ross Manning said in a release.

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