ENER 'Largest ever' Med gas field found off Egypt

Housecarl

On TB every waking moment
If this is correct this will change the balance of things in Europe and particularly in Egypt. It also makes the table stakes for control of Egypt even higher.....

For links see article source.....
Posted for fair use.....
http://news.yahoo.com/largest-ever-med-gas-field-found-off-egypt-143205171.html

'Largest ever' Med gas field found off Egypt

AFP
9 hours ago

Cairo (AFP) - Italian energy giant Eni on Sunday announced the discovery of the "largest ever" offshore natural gas field in the Mediterranean, in Egypt's territorial waters.


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1. Italy's Eni finds 'supergiant' natural gas field off Egypt Associated Press
2. Italy's Eni makes mega gas discovery off Egyptian coast Reuters
3. Israel’s Cabinet Approves Regulatory Scheme for Gas-Field Development The Wall Street Journal
4. Natural-gas prices gain as U.S. supplies climb less than expected MarketWatch


The discovery, confirmed by Egypt's oil ministry, could hold a potential 30 trillion cubic feet (850 billion cubic metres) of gas in an area of about 100 square kilometres (40 square miles), Eni said in a statement.

"It's the largest gas discovery ever made in Egypt and in the Mediterranean Sea and could become one of the world’s largest natural-gas finds," the firm said.

The so-called Zohr project discovery is expected to meet Egypt's own natural gas demands for decades.

The "supergiant" field is located at a depth of 4,757 feet (1,450 metres) in the Shorouk Block, Eni said.

The firm said it would "immediately appraise the field with the aim of accelerating a fast track development of the discovery", giving a timeframe of four years.

It added that Eni's CEO, Claudio Descalzi, has visited Cairo and discussed the discovery with Egyptian President Abdel Fattah al-Sisi and Prime Minister Ibrahim Mahlab.

"This historic discovery will be able to transform the energy scenario of Egypt," Descalzi said in the statement.

Italian Prime Minister Matteo Renzi, in a message to Descalzi, congratulated the oil company on the "extraordinary" discovery.


- Jihadist attacks -


"A find of this size should be enough to cover a lot of Egypt's energy gap," Robin Mills, a Dubai-based analyst at Manaar Energy Consulting, told Bloomberg News.

"They'll likely have to meet domestic needs first, before any export plans are discussed. This will also put a damper on Israeli plans to export gas to Egypt," he added.

Egypt, the largest country of the Arab world, is of strategic and economic interest to Italy. It the first country Eni expanded to some 60 years ago from its base in Italy.

Previously Italy invested heavily in neighbouring Libya, but for the past four years Libya has been mired in chaos and violence.

In recent years the western Mediterranean has seen a jump in gas exploration. In 2010, major natural gas fields found off Israel.

In March, British energy giant BP unveiled plans to invest $12 billion (10.7 billion euros) in Egyptian offshore gas fields with Russian partner DEA, despite the slump in world oil prices.

It said the investment in the West Nile Delta fields aims to develop five trillion cubic feet of gas resources and 55 million barrels of condensates, with output expected to begin in 2017.

News of the gas find comes as Egypt is experiencing a wave of attacks, many of which have been claimed by the radical Islamic State (IS) group's Egyptian affiliate.

Earlier this month IS claimed to have beheaded a Croatian employee of a French oil and gas geology company, who was abducted in July near Cairo.

Jihadists have launched regular assaults against security forces since the army's ouster of former president Mohamed Morsi in 2013.

Most of their attacks are in the Sinai Peninsula, but deadly bombings have also been carried out in other cities, including Cairo.


View Comments (88) .
 

Richard

TB Fanatic
http://www.bbc.co.uk/news/world-middle-east-34103993


Egypt parliament elections to be held in October and November
30 August 2015

Egypt's election commission has announced that a long-awaited parliamentary election will be held in two stages in October and November.
The poll had been scheduled for March and April but was delayed by a Supreme Court ruling that part of an electoral law was unconstitutional.
The ruling struck down part of the law that defined electoral districts.
Egypt's main assembly was dissolved in 2012. The election is due to be the final transition from military rule.
The head of the election commission, Ayman Abbas, was quoted as saying the first phase will be held on 18 and 19 October in 14 governorates.
The second phase will be held on 22 and 23 November in 13 governorates, including Cairo.
Egyptians living abroad will be able to cast ballots on the 17 and 18 October and then on 21 and 22 November.
Former army chief Abdul Fattah al-Sisi took power after the overthrow of Islamist President Mohammed Morsi in 2013.
Mr Sisi was later elected president in May 2014. His supporters are expected to dominate the new chamber.
Since the overthrow of Mr Morsi the military has launched a crackdown on the Islamist movement that has left more than 1,500 people dead and more than 16,000 in detention. Scores have been sentenced to death, including Morsi.
Mr Sisi governed as a military ruler before stepping down from the military and winning an overwhelming election victory in May last year.
 

Housecarl

On TB every waking moment
I wonder if China knows. :whistle:

I'm sure they know but they're putting a better deal together with Iran; they've got a pipeline being set up from there into the west of the PRC through Pakistan. They're also reportedly going to "assist" Iran with some of their heavy water reactors.
 

Housecarl

On TB every waking moment
If the EU energy companies can get onto this fast enough they'll "cut the cord" and influence of Russian gas supplies.

Russia gets dumped and then Egypt (Muslims) can suppy the new European Caliphate with gas and jobs.

Figure it like this, if Egypt can get this going, they, the Sisi regime, can finance all the programs they need in order to get Egypt on its feet, modernize and undercut the Brotherhood and IS/Daesh. That would go a long way in cutting down on people leaving Egypt at the least for the EU, and would be a start. If Egypt goes all in to stabilize Libya, which has been discussed, that takes care of another source of refugees. Then your problems are Central and East Africa and Syria. I don't see Egypt going that afield if they don't have to get money from the Saudis and act as their Hessians in return.
 

Lilbitsnana

On TB every waking moment
If the EU energy companies can get onto this fast enough they'll "cut the cord" and influence of Russian gas supplies.

Putin has been helping Egypt a lot lately, I'm wondering if that window was closed before it was even open?
 

Housecarl

On TB every waking moment
Putin has been helping Egypt a lot lately, I'm wondering if that window was closed before it was even open?

Yeah that is a very good question, though the way around it would be the Russians and Egyptians to form their own natural gas cartel.
 

Lilbitsnana

On TB every waking moment
Yeah that is a very good question, though the way around it would be the Russians and Egyptians to form their own natural gas cartel.

That was kind of what I was trying to say.

I think the EU lost out before they even had a chance; Egypt and Russia have been cementing economic and defense ties over the last few days. Russia could very likely have behind the scenes leverage on who gets natural gas from that field.
 

Richard

TB Fanatic
Figure it like this, if Egypt can get this going, they, the Sisi regime, can finance all the programs they need in order to get Egypt on its feet, modernize and undercut the Brotherhood and IS/Daesh. That would go a long way in cutting down on people leaving Egypt at the least for the EU, and would be a start. If Egypt goes all in to stabilize Libya, which has been discussed, that takes care of another source of refugees.

This is what I am hoping, a strong Egypt could kelp to stabilise the ME and turn away from Islam.
 

Housecarl

On TB every waking moment
This is what I am hoping, a strong Egypt could kelp to stabilise the ME and turn away from Islam.

As long as Sisi et al can keep the Muslim Brotherhood or IS/Daesh from throwing them out. Those sorts of resources on top of Egypt's population, military industrial complex and geographic location makes it a really key goal.
 

Lilbitsnana

On TB every waking moment
Well, that didn't take long.


Michael Horowitz ‏@michaelh992 36m36 minutes ago

#Breaking Car bomb reported near the headquarter of the Mellitah Oil Company in Tripoli #Libya via @alwasatnewsly


Michael Horowitz ‏@michaelh992

PT:Skynews however claims the attack targeted foreign embassies (possibly in the same area)


Beyond The Levant retweeted
Middle East Eye ‏@MiddleEastEye 14m14 minutes ago

BREAKING: Libya bomb targeted ENI, Italian gas company that discovered huge gas field off Egyptian coast on Sunday
 

Sacajawea

Has No Life - Lives on TB
Blacknarwhal - I wonder if those gas fields are essentially the same one, and all anyone can "claim" is authority over access points, where the gas is abundant enough to begin developing production?
 

Housecarl

On TB every waking moment
For links see article source.....
Posted for fair use.....
http://apnews.myway.com/article/20150831/ml--egypt-economy-3a66206421.html

Massive gas find promises to ease Egypt's fuel crisis

Aug 31, 4:41 PM (ET)
By BRIAN ROHAN

(AP) In this Saturday, Aug. 29, 2015 photo provided by Egypt's state news agency MEAN,...
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CAIRO (AP) — The discovery of a huge gas field off Egypt's coast promises to ease a long-running fuel crisis and boost the economy after years of unrest, but it will take years to develop and won't bring Gulf-style riches to the Arab world's most populous country, experts said Monday.

The new "supergiant" offshore Zohr field, revealed a day earlier by Italy's Eni SpA and billed as the "largest-ever" found in the Mediterranean Sea, could alleviate Egypt's need for gas imports in the coming years, when a booming population will lead to a spike in domestic demand.

The latest discovery — potentially 30 trillion cubic feet of gas — represents about half of Egypt's current needs, and would add to its current 65 trillion cubic feet, cut its trade deficit and bring in tax revenue when it comes online in some five years, said Angus Blair of investment advisory firm Signet.

"It's a very useful positive economic factor in Egypt," he said. "Obviously it will help President (Abdel-Fattah) el-Sissi and the government, but to look at it very practically, and economically, it has just come at a very good time."

(AP) In this Tuesday, Jan. 20, 2015 file photo, Italian energy giant Eni CEO...
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Egypt is making a gradual economic recovery from the years of chaos that followed the 2011 uprising. Rolling power cuts have been a regular feature of life since the overthrow of President Hosni Mubarak, as the country was ruled successively by the military, an Islamist president and then a military-backed government. However, this summer Cairo was largely spared the outages.

El-Sissi has staked his legitimacy on fixing the economy, and has made energy projects a priority. Last March, authorities signed a $4.6 billion contract with Germany's Siemens AG to build a new 4.4-gigawatt power plant in southern Egypt and generate 2 gigawatts of wind power.

Combined with other agreements signed with Siemens, and the U.S. firm General Electric, Cairo hopes to boost electricity generation by a third. The new gas discovery would be used to generate electricity but also fuel industry, whose growth has been lagging due to shortages.

Petroleum Ministry spokesman Hamdi Abdelaziz said the monetary value of the gas has yet to be determined, but that it would be extracted for domestic consumption only. "We hope to become self-sufficient by 2020," he said.

Given the country's surging population of 90 million, growing at over 2 percent per year, Egypt desperately needs new energy sources. Until the latest discovery, that would have meant importing gas from the Gulf and neighboring Israel.

The new find could be twice as large as Israel's recently discovered Leviathan field, however, potentially scrapping the need for imports from the Jewish state. Gas imports from Israel have long been unpopular in Egypt because of the Arab-Israeli conflict.

"Egypt will not need to import gas from Israel, and it might be able to restart some gas exports," said Robin Mills, a non-resident fellow for energy at the Brookings Doha Center.

Israel had been eyeing Egypt as an export market for the new reserves it has discovered, and politicians there were scrambling on Monday to explain why they had not been exploited faster, before the discovery of the new field.

"We need to say the truth — this is a painful wake-up call for our really foolish conduct, where for years we have been stalling the searches, stalling development," Energy Minister Yuval Steinitz told Army Radio. "Nothing is moving."

Facing accusations from the media and opposition lawmakers that it has given sweetheart deals to gas companies, the Israeli government has struggled to approve a policy for exporting its natural gas. The criticism has focused on issues like gas prices, how much gas should be exported and how to divide revenues.

The new Egyptian field is small compared to the vast reserves of Gulf countries such as Qatar, with over 860 trillion cubic feet, and the United Arab Emirates, with 215 trillion — both countries with tiny populations and thus large amounts available for export.

"The gas find is a windfall, but it doesn't take Egypt into the league of major gas producers," said Simon Kitchen, a strategist at Egypt's EFG Hermes bank. "It should support a recovery in Egypt's industrial output, (but) the risk is that the windfall income created by the find leads Egypt to freeze much-needed economic reforms."

---

Associated Press writer Ian Deitch in Jerusalem contributed to this report.
 

Housecarl

On TB every waking moment
For links see article source.....
Posted for fair use.....
http://apnews.myway.com/article/20150901/ml--israel-natural_gas-b8c4f6f840.html

Egypt gas find sparks panic in Israel about Israeli reserves

Sep 1, 1:40 PM (ET)
By DANIEL ESTRIN

(AP) In this Saturday, Aug. 29, 2015 file photo provided by Egypt's state news...
Full Image

JERUSALEM (AP) — Egypt's new natural gas bonanza is causing an uproar in Israel, with energy stocks plummeting and recriminations over indecisiveness and infighting that have delayed production from the country's own gas fields.

The government is currently struggling to get parliament to approve its natural gas business plan, but observers fear Israel may need to reassess everything now that Egypt, which had been cast as both an export destination and a partner, may have found its own independent solution.

Israel's offshore gas reserves had long been regarded as a future cash cow for the resource-poor country, and gas exporters in Egypt were expected to be the key customers of Israel's yet untapped Leviathan field.

But plans to develop Leviathan are suddenly up in the air after Italian energy company Eni SpA said Sunday it had found the "largest-ever" gas field in the Mediterranean Sea off Egypt's shores. The field is located in shallower seas than Leviathan, likely making it easier for companies to extract, in a country with none of the regulatory chaos of Israel.

(AP) Eni's Bouri Offshore oil terminal is seen off the Libyan coast, in the Mediterranean...
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"It adds a whole new layer of uncertainty to an already very messy situation," said Gal Luft, an energy security expert and senior adviser to the United States Energy Security Council. "It essentially postpones any prospect for a deal."

After the news broke, the main energy companies with holdings in Israel's gas fields took a hit. Texas-based Noble Energy's shares tumbled 3.2 percent on Monday in trading on the New York Stock Exchange, while the Israeli Delek Group's shares dropped 12 percent in trading on Tel Aviv's stock exchange. The oil and gas index on the Tel Aviv exchange plunged 13 percent, though the index appeared to stabilize Tuesday.

Israel discovered two large fields, Tamar and the larger Leviathan, in 2009 and 2010, raising hopes that the gas would reduce Israel's dependence on foreign sources of energy and create a new engine for the economy. But exploiting the gas has turned out to be more complicated than anticipated, amid repeated disputes over pricing, export policies and how to split profits with energy companies developing the fields.

Egypt's massive gas discovery "is a painful wake up call for our really foolish conduct," Israel's energy minister, Yuval Steinitz, told Israeli Army Radio on Monday. "For years we have been stalling the searches, stalling development. Nothing is moving."

For months, Israeli leaders raced to clinch a deal to lure developers to extract Israel's gas. But the deal has been held up as critics accused Prime Minister Benjamin Netanyahu of caving in to a monopoly at the expense of Israel's coffers. Even Israel's antitrust commissioner opposed the deal.

(AP) In this Nov. 25, 1966 file photo, farmers look at a towering flame at an...
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Israel's Cabinet tried to sidestep the commissioner by claiming the gas deal was a matter of national security since it involved business ties with Egypt, the first Arab country to make peace with the Jewish state and a key ally in the battle against Islamic militants. But now that Egypt has struck liquid gold, Israeli leaders worry that developers will have less incentive to develop Israel's resource at all.

Opposition lawmaker Shelly Yachimovich, a leading critic of Israel's deal with the gas companies, said the Egyptian gas discovery would likely introduce more competitive prices to the market and therefore Israel should not rush into a deal promising high profits to developers, siphoning off funds that could benefit the Israeli public.

"If the discovery is real, there will be regional competition, prices will drop. So it's absolutely clear that we must not get trapped now in draconian contracts," she told Army Radio.

A partnership between Noble and Delek is the main developer for Tamar and Leviathan, and also owns two smaller reserves discovered recently.

The firms have been selling gas to the Israeli market from the Tamar field, which went online in 2013, and have agreed to sell to neighboring countries as well.

The heftier Leviathan field, which until the Egyptian discovery was considered to be the largest gas field in the Mediterranean, has not yet been developed, pending assurances from the Israeli government about the profits the companies will be allowed to reap. Initially scheduled to go online next year, it now remains unclear when the field will be developed.

The developers were counting on sending Leviathan's gas to Egypt, where there are facilities to liquefy the natural gas for export to Europe. Egypt's proximity to Israel and the longstanding diplomatic relations between the two countries would have facilitated that.

After long negotiations, a government committee struck a deal with the firms earlier this year, aiming to break up their monopolistic control of Israel's gas reserves and introduce competition while maintaining incentives for fresh investment.

But Israeli environmentalists and opposition lawmakers say the deal maintains the monopoly and squanders Israel's resources. Their calls for more competition have helped delay a vote on the plan.

In another setback to the deal, Israel's economy minister, who has the authority to override the antitrust commissioner, changed his mind and will no longer sidestep the opinion of the commissioner. That brings Israel back to the drawing board, because the antitrust commissioner resigned amid the controversy and his replacement has not yet been appointed. The deadlock, coupled with Eni's announcement Sunday, forced Netanyahu to call off a planned vote in parliament.

"While here we are busy with infighting and how to make sure nobody profits, the state of Israel could already have signed export agreements that could have brought in billions of shekels," said Uri Aldubi, chairman of the Association of Oil and Gas Exploration Industries in Israel to Army Radio. "The window of opportunity for the Israeli gas industry is quickly shrinking. Now is the time to make haste and promote the development of Leviathan and the search for additional sources."

While Israel continues to debate the deal with gas developers, Egypt is projecting a willingness to do business and gas developers may abandon Israel for Egypt, said Luft, who co-directs the Institute for the Analysis of Global Security, a Washington-based think tank focused on energy security.

Egyptian President Abdel-Fattah el-Sissi has staked his legitimacy on fixing the economy, and in a country that frequently suffers from blackouts, he has made energy projects a priority.

But Israel can still find other buyers, Luft said. He said Cyprus and Greece would be good markets because they use oil for electricity, and natural gas would be a cheaper alternative. He also proposed that Israel adopt a different method of exporting natural gas by compressing it, instead of investing billions of dollars in building the kinds of liquefying plants that Egypt possesses.
 

Housecarl

On TB every waking moment
For links see article source.....
Posted for fair use.....
http://www.brookings.edu/research/opinions/2015/09/10-egypt-gas-discovery-abdelghafar

Opinion | September 10, 2015

Egypt’s new gas discovery: Opportunities and challenges

By: Adel Abdel Ghafar

Egypt’s New Gas Discovery: Opportunities and Challenges

After a tough year, the Egyptian government recently received some good news. Italy’s ENI announced that it has discovered the “largest ever” offshore natural gas field in the Mediterranean off the Egyptian coast. Dubbed a “supergiant” field, ENI suggested that the Zohr project would be able to meet Egypt’s own natural gas demands for decades to come.

This is welcome news for the government of Abdel-Fattah el-Sissi as it enters its second year and it is likely to resonate locally and regionally. Once the field comes online it will go a long way toward satisfying local demand, thus allowing Egypt to spend significantly less on energy. It would be prudent for the government to use these savings to improve people’s livelihoods and invest in infrastructure, health, and education.

From Exporting to Importing: An Unpleasant Journey

In 2003, after the discovery of sizable reserves and the establishment of pipelines and Liquefied Natural Gas (LNG) facilities, Egypt began exporting gas to Jordan, Israel, and Syria. In addition, the government had ambitious plans to export to Lebanon and Turkey.

This coincided with an increased thirst for gas locally. According to a report by the German Marshal Fund, between 2000 and 2012 overall energy consumption in Egypt rose by 5.6 percent, but demand for gas grew by 8.7 percent. By 2012, gas was providing more than 50 percent of the total energy needs of the country compared with 35 percent in 2000. Even though production had risen, nonetheless it was inevitable that in the long run demand would outstrip supply as gas was being used for industrial, commercial, and residential purposes at subsidized prices, as well as exporting.

By 2015, the party was over. Due to this exponentially increasing local demand for energy, Egypt was no longer a net exporter of gas. After initial denials by the government , Egypt began importing gas from Israel via a US company early in the year, causing local controversy as Egypt had until then been exporting to Israel for more than a decade. Adding insult to injury, Egypt imported Israeli gas at global prices despite having exported theirs to Israel at much lower prices during the previous decade.

For Egyptian energy policy makers, importing from Israel made sense as some of the existing infrastructure used for gas exports could now be used to import, despite the damage inflicted by militant groups operating in the Sinai who blow up pipelines on a regular basis.

In addition to imports from Israel, in February 2015 Egypt signed an MOU with Cyprus for a feasibility study to assess an under water pipeline for exporting gas to Egypt. The initial findings of the report are being assessed by the government to determine whether to proceed. Overall, Egyptian policy makers had been preparing for the eventual decline of local supply of gas.

Enter the Zohr

While it will take years to produce gas from the field commercially, this is nonetheless an undeniably good story for the Egyptian government as it tries to shore up its economic credentials. In a country where acute energy shortages peak in the summer months, energy supply is high on the agenda. Before ex-President Morsi was overthrown in 2013, he was being blamed for a series of power outages that had swept the country, leaving the population increasingly frustrated. The Egyptian government understands the importance of providing cheap energy for stability. Even the army has gotten involved and is currently building a series of power stations to support the ever-strained electrical supply.

The new discovery has alarmed Israeli policy makers. The Israeli energy minister Yuval Steinitz said that the Egyptian discovery is “a painful reminder that while Israel sleepwalks and dallies with the final approval for the gas road map, and delays future prospecting, the world is changing in front of us, including ramifications for [Israeli] export options.” Indeed, despite sizable fields discovered in Israeli waters, the deal between Noble Energy and the Delek group have been facing regulatory issues in Israel. The news of the discovery led to a heavy selloff of gas producers on the Israeli stock exchange.

It is likely that the new discovery in Egyptian waters will provide impetus for Israel to hasten its production, as once the Zohr field comes online, it will have direct ramifications for Israeli gas exports not only to Egypt, but regionally as well, including any potential gas deals with Cyprus and Turkey.

Now What?

The key issue now is how fast can this field become operational, and at what cost. The government has yet to publish a detailed costing of the project, including who will bear the investment cost, and more importantly, how exactly the revenues from the field will be distributed. It remains to be seen if it will become a “game-changer” as ENI CEO Claudio Descalzi suggested.

In addition to these concerns, LNG prices have been dropping due to a variety of factors globally. First, Japan, which had become one of the world’s largest LNG consumers after its Fukushima disaster, recently began restarting its nuclear reactors, thereby reducing demand. Second, there is also increased supply capacity coming online around the world that is likely to put further pressure on prices. As prices become lower, the prospective returns from the new discovery would already be under pressure.

Finally, with the Iranian nuclear deal being completed, Iran will be likely to increase investment in its LNG capabilities to become a larger regional gas producer. India has already signaled its interest in reviving a decade-old $22 billion LNG deal with Iran that was on hold due to the sanctions. Descalzi was bullish and shrugged off these concerns, arguing that the field is “another positive response to this kind of low price environment.”

Exporting aside, if this discovery is able to satisfy local demand for gas for some decades to come, then this is undeniably good news for Egypt as it will free up much needed funds for other sectors of the economy, such as health and education. Overall, August has been a good month for Egypt’s energy prospects. In addition to the Zohr gas discovery, President Sissi during his recent visit to Moscow signed an MOU to build a Russian nuclear reactor as Cairo continues to deepen its relationship with Moscow.

Neither the nuclear reactor nor the gas field will become operational anytime soon. Nonetheless they both provide a positive story for foreign investors who are weary of investing in Egypt after five years of domestic turmoil. Additionally, earlier this year, Moody’s upgraded Egypt’s credit rating to B3 with a stable outlook, which should also help entice existing and prospective investors.

All of these developments show great promise, but are yet to improve people’s lives. The government should now spend less time talking up its prospects and performance, and focus instead on actually improving people’s livelihoods. The proceeds from this new field need to be invested wisely in key areas, not squandered. The expectations of everyday Egyptians continue to rise with each positive news story, so the government must now produce some tangible results or it will risk further upheaval down the line as ever-increasing expectations remain unmet.
 

mistaken1

Has No Life - Lives on TB
Yeah that is a very good question, though the way around it would be the Russians and Egyptians to form their own natural gas cartel.

From here:
http://www.timebomb2000.com/vb/show...ina-led-SCO-troops-may-follow-Russia-to-Syria


"In June Egypt also submitted an application to join SCO."

"In the July summit of the China-led Shanghai Cooperation Organization (SCO),
the two core missions were (1) admitting India and Pakistan as full members and
(2) how best to counter ISIS and Islamic extremism within member territories. "
 
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