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Manila seeks ASEAN front against China on sea row
by Staff Writers
Nusa Dua, Indonesia (AFP) Nov 14, 2011

Oil higher amid fresh fears on Middle East tensions
Singapore (AFP) Nov 14, 2011 - Oil was higher in Asia Monday as traders weighed the prospects of renewed Middle East tensions after the UN nuclear watchdog said Iran had worked on atomic weapons technology.

New York's main contract, light sweet crude for December delivery gained 16 cents to $99.15 a barrel and Brent North Sea crude, also for December, was 44 cents higher at $114.60.

Iran is the second-biggest producer in the Organisation of the Petroleum Exporting Countries after Saudi Arabia, and any escalation in the standoff over its nuclear programme is seen as potentially disruptive to oil supply from the country.

"We think that the markets are just getting a little concerned over the supply side shock that could come if the matter escalated in some form or extent," said David Lennox, a Sydney-based resource analyst with Fat Prophets research house.

Israeli Prime Minister Benjamin Netanyahu on Sunday called on world governments to waste no time in stopping "Iran's race to arm itself with a nuclear weapon."

The International Atomic Energy Agency (IAEA) said in its report last week there was "credible" intelligence suggesting Iran had carried out work towards building nuclear warheads, a claim denied by officials in Tehran.


The Philippine president is set to court support from his Southeast Asian allies at summit talks this week to form a united front against China over a high seas territorial dispute.

Benigno Aquino will stress that peacefully solving overlapping claims in the South China Sea is a "paramount concern" for Manila as well as for the region, according to an internal foreign department document obtained by AFP on Monday.

The Association of Southeast Asian Nations (ASEAN) is to hold its annual summit on the Indonesian island of Bali from Thursday, followed by a broader East Asian summit including China and, for the first time, the United States.

To the disquiet of Washington and ASEAN members, China claims all of the South China Sea, including the Spratlys, a group of islands believed to sit atop vast oil and mineral reserves.

China's rival Taiwan, as well as ASEAN countries Brunei, the Philippines, Malaysia and Vietnam, also lay claim to all or part of the Spratlys, which straddle vital shipping lanes in the South China Sea.

Aquino wants to make the sea a "zone of peace, freedom, friendship and cooperation" instead of a potential flashpoint for conflict by erecting a rules-based regime to govern the area, the internal document said.

"The Philippines calls on ASEAN to facilitate a meeting among claimant states in the South China Sea, including China, to discuss these claims and define both the undisputed and disputed areas for the purposes of establishing a joint cooperation area," it said.

"ASEAN must play a decisive role at this time if it desires to realise its aspirations for global leadership."

ASEAN and China adopted a non-binding code of conduct in 2002 to discourage hostile acts in the South China Sea. The Philippines wants the code to be strengthened with binding rules.

Tensions in the decades-old dispute have escalated this year amid accusations from the Philippines and Vietnam that Beijing is becoming increasingly aggressive in staking its South China Sea claims.

The Philippines' foreign undersecretary for policy, Erlinda Basilio, said Aquino would raise his proposal at every opportunity at this week's top-level talks in Bali, which will be joined by US President Barack Obama.

"We will try to enlighten them on the merits of our proposal and we will continue to do so because the president has enunciated a rules-based regime and the importance of international law," Basilio told reporters in Manila before heading to Bali.

"It's like a stone -- a constant pour of water will certainly erode, however hard the rock is," she said, expressing hope that a common ASEAN front would prod China into concessions.

Taiwan said last month it planned to deploy advanced missiles over disputed Spratly islands that it controls, prompting an appeal for calm from the United States.

Then in late October, outspoken Chinese newspaper The Global Times warned neighbouring nations with rival claims in both the East China Sea and the South China Sea to "prepare for the sounds of cannons".

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Canadian PM eyes China after US pipeline delay
Honolulu, Hawaii (AFP) Nov 13, 2011 - Canadian Prime Minister Stephen Harper said Sunday that he was looking at exporting more oil to China after the United States delayed a decision on a controversial pipeline.

President Barack Obama's administration last week put off a decision on Keystone XL project after a major protest campaign by environmentalists, who say the pipeline would be prone to accidents and worsen climate change.

The conservative Canadian leader, taking part in a summit in Hawaii hosted by Obama said the pipeline decision had produced "extremely negative reactions" and that he discussed oil exports with Chinese President Hu Jintao.

"This does underscore the necessity of Canada making sure that we are able to access Asian markets for our energy products," Harper told reporters. "I indicated that yesterday (Saturday) to President Hu of China."

The Harper government has pressed Obama to approve the 1,700-mile (2,700-kilometer) pipeline extension, which would stretch through Montana, South Dakota, Nebraska, Kansas and Oklahoma before ending up in Texas.

Canada, the pipeline's lead company TransCanada, and Obama's Republican opponents say the $7 billion project would provide the United States with a stable source of energy from an ally and create thousands of jobs.

"I remain optimistic that the project will eventually go ahead because it makes eminent sense," Harper said.

"This project is obviously what's in the best interest not just of the Canadian economy but also of the American economy," he said.

But environmentalists say an accident would be disastrous for aquifers in the US Great Plains and point to spills on an existing Keystone pipeline. The oil comes from tar sands, meaning it produces high levels of carbon emissions blamed for global warming.

The Obama administration, in ordering further study, cited particular concern about the pipeline's planned route through the Sand Hills area of Nebraska, which has a sensitive ecosystem and shallow groundwater.

The State Department delayed a final decision until 2013, after next year's presidential election.



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ENERGY TECH
Canadian PM eyes China after US pipeline delay
Honolulu, Hawaii (AFP) Nov 13, 2011
Canadian Prime Minister Stephen Harper said Sunday that he was looking at exporting more oil to China after the United States delayed a decision on a controversial pipeline. President Barack Obama's administration last week put off a decision on Keystone XL project after a major protest campaign by environmentalists, who say the pipeline would be prone to accidents and worsen climate change. ... read more


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