Attack at Algeria Gas Plant Heralds New Risks for Energy Development



The siege by Islamic militants at a remote Sahara desert natural gas plant in Algeria this week signaled heightened dangers in the region for international oil companies, at a time when they have been expanding operations in Africa as one of the world's last energy frontiers. (See related story: "Pictures: Four New Offshore Drilling Frontiers.")


As BP, Norway's Statoil, Italy's Eni, and other companies evacuated personnel from Algeria, it was not immediately clear how widely the peril would spread in the wake of the hostage-taking at the sprawling In Amenas gas complex near the Libyan border.



A map of disputed islands in the East and South China Seas.

Map by National Geographic



Algeria, the fourth-largest crude oil producer on the continent and a major exporter of natural gas and refined fuels, may not have been viewed as the most hospitable climate for foreign energy companies, but that was due to unfavorable financial terms, bureaucracy, and corruption. The energy facilities themselves appeared to be safe, with multiple layers of security provided both by the companies and by government forces, several experts said. (See related photos: "Oil States: Are They Stable? Why It Matters.")


"It is particularly striking not only because it hasn't happened before, but because it happened in Algeria, one of the stronger states in the region," says Hanan Amin-Salem, a senior manager at the industry consulting firm PFC Energy, who specializes in country risk. She noted that in the long civil war that gripped the country throughout the 1990s, there had never been an attack on Algeria's energy complex. But now, hazard has spread from weak surrounding states, as the assault on In Amenas was carried out in an apparent retaliation for a move by French forces against the Islamists who had taken over Timbuktu and other towns in neighboring Mali. (See related story: "Timbuktu Falls.")


"What you're really seeing is an intensification of the fundamental problem of weak states, and empowerment of heavily armed groups that are really well motivated and want to pursue a set of aims," said Amin-Salem. In PFC Energy's view, she says, risk has increased in Mauritania, Chad, and Niger—indeed, throughout Sahel, the belt that bisects North Africa, separating the Sahara in the north from the tropical forests further south.


On Thursday, the London-based corporate consulting firm Exclusive Analysis, which was recently acquired by the global consultancy IHS, sent an alert to clients warning that oil and gas facilities near the Libyan and Mauritanian borders and in Mauritania's Hodh Ech Chargui province were at "high risk" of attack by jihadis.


"A Hot Place to Drill"


The attack at In Amenas comes at a time of unprecedented growth for the oil industry in Africa. (See related gallery: "Pictures: The Year's Most Overlooked Energy Stories.") Forecasters expect that oil output throughout Africa will double by 2025, says Amy Myers Jaffe, executive director of the energy and sustainability program at the University of California, Davis, who has counted 20 rounds of bidding for new exploration at sites in Africa's six largest oil-producing states.


Oil and natural gas are a large part of the Algerian economy, accounting for 60 percent of government budget revenues, more than a third of GDP and more than 97 percent of its export earnings. But the nation's resources are seen as largely undeveloped, and Algeria has tried to attract new investment. Over the past year, the government has sought to reform the law to boost foreign companies' interests in their investments, although those efforts have foundered.


Technology has been one of the factors driving the opening up of Africa to deeper energy exploration. Offshore and deepwater drilling success in the Gulf of Mexico and Brazil led to prospecting now under way offshore in Ghana, Mozambique, and elsewhere. (See related story: "New Oil—And a Huge Challenge—for Ghana.") Jaffe says the Houston-based company Anadarko Petroleum has sought to transfer its success in "subsalt seismic" exploration technology, surveying reserves hidden beneath the hard salt layer at the bottom of the sea, to the equally challenging seismic exploration beneath the sands of the Sahara in Algeria, where it now has three oil and gas operations.


Africa also is seen as one of the few remaining oil-rich regions of the world where foreign oil companies can obtain production-sharing agreements with governments, contracts that allow them a share of the revenue from the barrels they produce, instead of more limited service contracts for work performed.


"You now have the technology to tap the resources more effectively, and the fiscal terms are going to be more attractive than elsewhere—you put these things together and it's been a hot place to drill," says Jaffe, who doesn't see the energy industry's interest in Africa waning, despite the increased terrorism risk. "What I think will happen in some of these countries is that the companies are going to reveal new securities systems and procedures they have to keep workers safe," she says. "I don't think they will abandon these countries."


This story is part of a special series that explores energy issues. For more, visit The Great Energy Challenge.


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Te'o Denies Involvement in Girlfriend Hoax













Notre Dame star linebacker Manti Te'o told ESPN that he "never, not ever" was involved in creating the hoax that had him touting what turned out to be a fictional girlfriend, "Lennay Kekua."


"When they hear the facts, they'll know," Te'o told ESPN's Jeremy Schaap in his first interview since the story broke. "They'll know that there is no way that I could be a part of this."


"I wasn't faking it," he said during a 2 1/2-hour interview, according to ESPN.com.


Te'o said he only learned for sure this week that he had been duped. On Wednesday, he received a Twitter message, allegedly from a man named Ronaiah Tuiasosopo, apologizing for the hoax, Te'o told Schaap.


The sports website Deadspin, which first revealed the hoax this week, has reported that Tuiasosopo, a 22-year-old of Samoan descent who lives in Antelope Valley, Calif., asked a woman he knew for her photo and that photo became the face of Kekua's Twitter account.


Te'o told Schaap that Tuiasosopo was represented to him as Kekua's cousin.


"I hope he learns," Te'o said of Tuiasosopo, according to coverage of the interview on ESPN.com. "I hope he understands what he's done. I don't wish an ill thing to somebody. I just hope he learns. I think embarrassment is big enough."


Click Here for a Who's Who in the Manti Te'o Case






AP Photo/ESPN Images, Ryan Jones











Manti Te'o Hoax: Was He Duped or Did He Know? Watch Video









Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video









Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video





Te'o admitted to a few mistakes in his own conduct, including telling his father he met Kekua in Hawaii even though his attempt to meet her actually failed. Later retellings of that tale led to inconsistencies in media reports, Te'o said, adding that he never actually met Kekua in person.


Te'o added that he feared people would think it was crazy for him to be involved with someone that he never met, so, "I kind of tailored my stories to have people think that, yeah, he met her before she passed away."


The relationship got started on Facebook during his freshman year, Te'o said.


"My relationship with Lennay wasn't a four-year relationship," Te'o said, according to ESPN.com. "There were blocks and times and periods in which we would talk and then it would end."


He showed Schaap Facebook correspondence indicating that other people knew of Kekua -- though Te'o now believes they, too, were tricked.


The relationship became more intense, Te'o said, after he received a call that Kekua was in a coma following a car accident involving a drunk driver on April 28.


Soon, Te'o and Kekua became inseparable over the phone, he said, continuing their phone conversations through her recovery from the accident, and then during her alleged battle against leukemia.


Even so, Te'o never tried to visit Kekua at her hospital in California.


"It never really crossed my mind," he said, according to ESPN.com. "I don't know. I was in school."


But the communication between the two was intense. They even had ritual where they discussed scripture every day, Te'o said. His parents also participated via text message, and Te'o showed Schaap some of the texts.


On Sept. 12, a phone caller claiming to be Kekua's relative told Te'o that Kekua had died of leukemia, Te'o said. However, on Dec. 6, Te'o said he got a call allegedly from Kekua saying she was alive. He said he was utterly confused and did not know what to believe.


ESPN's 2 1/2-hour interview was conducted in Bradenton, Fla., with Te'o's lawyer present but without video cameras. Schaap said Te'o was composed, comfortable and in command, and that he said he didn't want to go on camera to keep the setting intimate and avoid a big production.


According to ABC News interviews and published reports, Te'o received phone calls, text messages and letters before every football game from his "girlfriend." He was in contact with her family, including a twin brother, a second brother, sister and parents. He called often to check in with them, just as he did with his own family. And "Kekua" kept in contact with Te'o's friends and family, and teammates spoke to her on the phone.






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Earl Smith is the man behind a military patch that President Obama prizes


That February morning in 2008 found Barack Obama decidedly out of sorts.


He was locked in one battle with Hillary Rodham Clinton for the Democratic nomination that showed no signs of ending — and another with a vicious cold that felt the same way.


As he rode the service elevator in the backway of a convention hotel here, the snowy-haired African American operating it turned suddenly. He held out a black-and-gold bit of fabric embroidered with a screaming eagle.

“Senator Obama, I have something I want to give you,” the man said. “I’ve carried this military patch with me every day for 40 years, and I want you to carry it, and itwill keep you safe in your journey.” Obama tried to refuse, but the older man persisted.

Big endeavors can find their meaning in small moments.

Later that day, Obama and his aides discussed the encounter. The future president pulled the patch from his pocket, along with about a dozen other items people had pressed upon him.

“This is why I do this,” he said. “Because people have their hopes and dreams about what we can do together.”

Two American stories intersected that morning in that elevator. The more famous, of course, is the one that begins its next chapter on Monday, as the nation’s first black president takes the oath of office for a second term.

But the other story also tells a lot about where this country has been and how far it has come.

No one in Obama’s small party that day noticed the man’s name tag or, if anyone did, the fact that it said Earl Smith was quickly forgotten.

No one knew how much of Smith’s life had been woven into a patch that, over four decades, found its way from the shoulder of an Army private to the pocket of a future commander-in-chief.

It was the only shred of cloth he had saved from the uniform of a nightmarish year in Vietnam. Smith fired artillery with a brigade that suffered 10,041 casualties during the course of the war. The brigade’s soldiers received 13 Congressional Medals of Honor.

The patch was waiting among his possessions when Smith was pardoned by the state of Georgia in 1977 after spending three years in prison for a crime he claimed was self-defense.

Smith kept it close as his lucky charm while he rebuilt his life and his reputation, starting with a job vacuuming hallways and changing sheets in an Atlanta Marriott. He carried it with him as he traveled halfway around the world again, to positions in hotels far from home, Riyadh in Saudi Arabia and Abu Dhabi in the United Arab Emirates.

Along the way, as he tended to travelers and made sure VIP gatherings went smoothly, he met three U.S. presidents.

His instincts told him Obama would make it four.

Like just about anyone else who was alive on Nov. 22, 1963, Smith can describe exactly where he was when he heard the horrific news: He was coming off a high school football practice field in his home town of San Benito, Tex.

Though not yet old enough to have voted for the man slain in Dallas, “I was devastated — a lot of us young people were — because John Kennedy was the young president,” recalled Smith, now 68.

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Japan's Abe condemns civilians' deaths in Algerian crisis






JAKARTA: Japanese Prime Minister Shinzo Abe has condemned the deaths of civilians in the Algerian hostage crisis.

He has also called on the Algerian government to prioritize the safety of hostages.

Mr Abe was speaking at a joint news conference in Jakarta after his meeting with Indonesian President Susilo Bambang Yudhoyono.

During their talks, both leaders agreed to strengthen their strategic partnership in political, security and economic relations.

Japan is involved in a maritime dispute with China over a group of islands in the East China Sea - a dispute that Mr Abe said should be resolved legally.

Mr Yudhoyono added that an open-sea policy should be enforced by law, and not by might.

He said: "All of us in Asia want to see a region that is stable, safe and peaceful. Therefore if there is a problem in the South China Sea or East Asia or anywhere in Asia, the solution should be peaceful, refrain from applying immediate military force and it must refer to international law. That is Indonesia's stance."

Prime Minister Abe's visit to Jakarta comes a day after the city was inundated with floodwaters. He expressed his sympathy towards the suffering of the flood victims in Greater Jakarta and vowed to help to restore and reconstruct damaged infrastructure.

Mr Abe also reaffirmed Japan's support for the development of Indonesia's railways, ports and sewage system, including the construction of the Cilamaya seaport and Jakarta's MRT.

- CNA/xq



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Lalu Prasad reveals Delhi gang-rape victim's name, demands death for rapists

KOLKATA: Rashtriya Janata Dal (RJD) chief Lalu Prasad while demanding death punishment for the perpetrators of the Delhi gang-rape and murder, mentioned the name of the victim on Friday.

"I went to meet the family of the victim in Ballia (Uttar Pradesh) and the father related how the young girl was subjected to barbarism. He revealed his daughter's name to me," said Lalu before mentioning the name of the victim to the audience.

"So long as a rape victim is alive you cannot mention her name, but in this case she is no more," added Prasad while addressing an interactive programme on women's empowerment organized by the FICCI Ladies Organization here.

Union law minister Ashwani Kumar this month had opined that the law was not in favour of revealing the identity of the victim.

Citing examples of Arab countries where criminals are stoned to death, Lalu Prasad demanded the culprits should be hanged and called for stronger laws and stringent punishment for rape and other crimes against women.

"Our party has always been advocating for punishment for rapists and in the next session of parliament we will put pressure on the government to amend the respective laws and provide death for rape," he said.

"If Raavan can be killed for abducting Sita, then why can't these inhumans be hanged. Unless there are stringent punishments we cannot prevent crime against women," Lalu Prasad said.

He also called for stirring up a nationwide mass movement to make the people aware about women rights.

A 23-year-old trainee physiotherapist was brutally raped by six men in a moving bus in south Delhi on December 16. She died on December 29 in a Singapore hospital where she was airlifted for specialized treatment.

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Opinion: Lance One of Many Tour de France Cheaters


Editor's note: England-based writer and photographer Roff Smith rides around 10,000 miles a year through the lanes of Sussex and Kent and writes a cycling blog at: www.my-bicycle-and-I.co.uk

And so, the television correspondent said to the former Tour de France champion, a man who had been lionised for years, feted as the greatest cyclist of his day, did you ever use drugs in the course of your career?

"Yes," came the reply. "Whenever it was necessary."

"And how often was that?" came the follow-up question.

"Almost all the time!"

This is not a leak of a transcript from Oprah Winfrey's much anticipated tell-all with disgraced cyclist Lance Armstrong, but instead was lifted from a decades-old interview with Fausto Coppi, the great Italian road cycling champion of the 1940s and 1950s.

To this day, though, Coppi is lauded as one of the gods of cycling, an icon of a distant and mythical golden age in the sport.

So is five-time Tour winner Jacques Anquetil (1957, 1961-64) who famously remarked that it was impossible "to ride the Tour on mineral water."

"You would have to be an imbecile or a crook to imagine that a professional cyclist who races for 235 days a year can hold the pace without stimulants," Anquetil said.

And then there's British cycling champion Tommy Simpson, who died of heart failure while trying to race up Mont Ventoux during the 1967 Tour de France, a victim of heat, stress, and a heady cocktail of amphetamines.

All are heroes today. If their performance-enhancing peccadillos are not forgotten, they have at least been glossed over in the popular imagination.

As the latest chapter of the sorry Lance Armstrong saga unfolds, it is worth looking at the history of cheating in the Tour de France to get a sense of perspective. This is not an attempt at rationalisation or justification for what Lance did. Far from it.

But the simple, unpalatable fact is that cheating, drugs, and dirty tricks have been part and parcel of the Tour de France nearly from its inception in 1903.

Cheating was so rife in the 1904 event that Henri Desgrange, the founder and organiser of the Tour, declared he would never run the race again. Not only was the overall winner, Maurice Garin, disqualified for taking the train over significant stretches of the course, but so were next three cyclists who placed, along with the winner of every single stage of the course.

Of the 27 cyclists who actually finished the 1904 race, 12 were disqualified and given bans ranging from one year to life. The race's eventual official winner, 19-year-old Henri Cornet, was not determined until four months after the event.

And so it went. Desgrange relented on his threat to scrub the Tour de France and the great race survived and prospered-as did the antics. Trains were hopped, taxis taken, nails scattered along the roads, partisan supporters enlisted to beat up rivals on late-night lonely stretches of the course, signposts tampered with, bicycles sabotaged, itching powder sprinkled in competitors' jerseys and shorts, food doctored, and inkwells smashed so riders yet to arrive couldn't sign the control documents to prove they'd taken the correct route.

And then of course there were the stimulants-brandy, strychnine, ether, whatever-anything to get a rider through the nightmarishly tough days and nights of racing along stages that were often over 200 miles long. In a way the race was tailor-made to encourage this sort of thing. Desgrange once famously said that his idea of a perfect Tour de France would be one that was so tough that only one rider finished.

Add to this the big prizes at a time when money was hard to come by, a Tour largely comprising young riders from impoverished backgrounds for whom bicycle racing was their one big chance to get ahead, and the passionate following cycling enjoyed, and you had the perfect recipe for a desperate, high stakes, win-at-all-costs mentality, especially given the generally tolerant views on alcohol and drugs in those days.

After World War II came the amphetamines. Devised to keep soldiers awake and aggressive through long hours of battle they were equally handy for bicycle racers competing in the world's longest and toughest race.

So what makes the Lance Armstrong story any different, his road to redemption any rougher? For one thing, none of the aforementioned riders were ever the point man for what the U.S. Anti-Doping Agency has described in a thousand-page report as the most sophisticated, cynical, and far-reaching doping program the world of sport has ever seen-one whose secrecy and efficiency was maintained by ruthlessness, bullying, fear, and intimidation.

Somewhere along the line, the casualness of cheating in the past evolved into an almost Frankenstein sort of science in which cyclists, aided by creepy doctors and trainers, were receiving blood transfusions in hotel rooms and tinkering around with their bodies at the molecular level many months before they ever lined up for a race.

To be sure, Armstrong didn't invent all of this, any more than he invented original sin-nor was he acting alone. But with his success, money, intelligence, influence, and cohort of thousand-dollar-an-hour lawyers-and the way he used all this to prop up the Lance brand and the Lance machine at any cost-he became the poster boy and lightning rod for all that went wrong with cycling, his high profile eclipsing even the heads of the Union Cycliste Internationale, the global cycling union, who richly deserve their share of the blame.

It is not his PED popping that is the hard-to-forgive part of the Lance story. Armstrong cheated better than his peers, that's all.

What I find troubling is the bullying and calculated destruction of anyone who got in his way, raised a question, or cast a doubt. By all accounts Armstrong was absolutely vicious, vindictive as hell. Former U.S. Postal team masseuse Emma O'Reilly found herself being described publicly as a "prostitute" and an "alcoholic," and had her life put through a legal grinder when she spoke out about Armstrong's use of PEDs.

Journalists were sued, intimidated, and blacklisted from events, press conferences, and interviews if they so much as questioned the Lance miracle or well-greased machine that kept winning Le Tour.

Armstrong left a lot of wreckage behind him.

If he is genuinely sorry, if he truly repents for his past "indiscretions," one would think his first act would be to try to find some way of not only seeking forgiveness from those whom he brutally put down, but to do something meaningful to repair the damage he did to their lives and livelihoods.


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Manti Te'o's Fake Girlfriend May Have Duped Others













Notre Dame star linebacker Manti Te'o's fake girlfriend "Lennay Kekua" may have hoaxed other unsuspecting suitors.


"Catfish" movie director and actor Ariel Schulman told "Good Morning America" today that he believes there may have been "a few other people duped by the fake Lennay character."


Schulman and his brother Nev Schulman have been looking into the elaborate scam and claim to be corresponding with various players involved. They have come to believe that there were "a lot of other people that she was corresponding with before and maybe even during her relationship [with Te'o]."


Nev Schulman was the subject of the 2010 movie "Catfish," which spawned the TV series, because he himself was sucked in by an Internet pretender -- or a "catfish" -- who built an elaborate fake life.


As questions mount about Te'o's possible role in the complex scam, the number one question is whether Te'o was unknowingly ensnared, as he says, or whether he was complicit in the scam.


"I stand by the guy. My heart goes out to him," Ariel Schulman said. His brother has reached out to Te'o, but has not heard back.


"He had his heart broken," Schulman said. "He was grieving for someone, whether she existed or not. Those were real feelings."






Streeter Lecka/Getty Images











Manti Te'o Hoax: Was He Duped or Did He Know? Watch Video









Manti Te'o Hoax: Notre Dame Star Allegedly Scammed Watch Video









Tale of Notre Dame Football Star's Girlfriend and Her Death an Alleged Hoax Watch Video





Click here for a who's who in the Manti Te'o case


Te'o has kept a low-profile since the news of the scandal broke. He released a statement calling the situation "incredibly embarrassing" and maintaining that he was a victim of the hoax.


He was captured briefly by news cameras on Thursday at a Florida training facility, but has not spoken publicly.


As for the woman whose photo was used as the face of Lennay Kekua, "Inside Edition" has identified her as Diane O'Meara who is very much alive. The show caught up with her on Thursday, but she declined to comment.


ABC News' legal analyst Dan Abrams said that O'Meara may be the one person in the scandal with the power to sue since her likeness was taken and used without her permission.


As for Te'o, even if he knew about the deception, it appears that he did not do anything illegal.


"He's allowed to lie to the public. He's allowed to lie to the media. He's not allowed to lie to the authorities," Abrams said on "Good Morning America."


Questions also remain about the timeline of events and when Te'o discovered that the "love of his life," as he called her, was nothing more than a fake Internet persona.


According to Notre Dame's timeline of events, Te'o learned his girlfriend didn't exist on Dec. 6.


But in a Dec. 8 interview with South Bend, Ind., TV station WSBT, Te'o said, "I really got hit with cancer. I lost both my grandparents an my girlfriend to cancer." And on Dec. 11, he talked about his girlfriend in a newspaper interview.


Te'o alerted Notre Dame on Dec. 26 about the scam, the university said.


Click here for more scandalous public confessions.


Skeptics have also cited comments by Te'o's father Brian Te'o who told a newspaper how Kekua used to visit his son in Hawaii.


Notre Dame athletic director Jack Swarbrick said the university launched their own investigation.


"Our investigators, through their work, were able to discover online chatter between the perpetrators," Swarbrick said at a Wednesday news conference. "That was sort of the ultimate proof."






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Airbus lost top spot to Boeing in 2012






TOULOUSE, France - European group Airbus lost its top spot as the world's biggest maker of airliners to the US giant Boeing last year, but did better than expected and sees big sales this year, it said on Thursday.

Publishing results just as Boeing is hit by a crisis of confidence in its Dreamliner plane after a series of incidents, Airbus said that last year it delivered 588 aircraft to 89 customers, a record after 534 deliveries in 2011.

But sales of the flagship superjumbo A380, the biggest airliner in the world, disappointed, coming in at about one third of the target figure after a problem was discovered with the wings which the company says is now behind it.

Airbus sold a total of 833 aircraft last year, far more than the initial target figure of 650, chief executive Fabrice Bregier told a press conference near where Airbus is based at Toulouse, southern France.

However, the sales figure was far lower than the record of 1,419 sales in 2011.

Boeing delivered 601 airliners last year and took 1,203 orders.

For this year, Airbus expects to take 700 orders, excluding any cancellations, and to deliver more than 600 planes.

The order book now total 4,682 planes representing about eight years of production work.

Airbus said that it hoped that its new long-range A350 aircraft would make its maiden flight at the end of June or beginning of July.

Referring to the A350, Bregier said: "We have made reasonable good progress but I will keep cautious until the end.

"For the first flight, we expect it by mid of this year which is a big milestone, mid means end of June or early July...We are not optimistic nor pessimistic but realistic."

He added: "I'm very humble. Lots of risks are behind us but I'm interested in what is in front (of us)."

Of the 833 net orders last year, allowing for 81 cancellations, 739 were for medium-range A320-type airliners, popular with low-cost airlines, and of those 478 were for the "neo" version with new more fuel-efficient engines. The orders also comprised 58 long-haul A330 aircraft and 27 of the future A350.

Airbus booked orders for nine of its A380 superjumbo jetliners.

Bregier said that Airbus, the main part of the giant European EADS aerospace group, had exceeded its targets in terms of new orders booked and of completed aircraft delivered, even though sales of the superjumbo had underperformed.

Airbus had counted on selling 30 of the superjumbos but this target was knocked off course by the discovery of micro-cracks in the wings which cooled some customer interest.

Bregier said that this problem had been "resolved" and said he expected that this year the company would take 25 orders and would also deliver 25 of the enormous aircraft.

Referring to the position of Airbus in the global market and to the "neo" version, Bregier observed: "When we do better than expected we can be satisfied. When we see we are still in the leading position on neo market, we can be satisfied."

He said: "We started earlier with a good product. If we do the right job and I plan to do the right job, it's a huge advantage."

In view of the rapid growth, the airline has recruited a net number of 7,000 people in the last two years, hiring 10,000 while 3,000 have left for normal reasons.

The company cut 10,000 jobs between 2007 and 2009 as it restructured after a severe crisis over delays to the superjumbo programme which revealed weaknesses in the industrial workflow system.

The company now employs 59,000 people and expects to recruit 3,000 this year.

This is in contrast to many substantial employers in France which are restructuring with big job cuts, and the economy as a whole is struggling to boost its export performance and raise the niche speciality of its industrial products.

The Airbus aircraft are built mainly in Germany, Britain and Spain, and in France where they are assembled in Toulouse.

- AFP/ir



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India mulls huge increase in Rafale order, may buy up to 189 fighter jets

PARIS: India could buy up to 189 of the Rafale fighter jets currently being used by France to bomb Islamist militants in Mali, sources close to negotiations on the multi-billion dollar deal have told AFP.

The possibility of an additional 63 jets being added to an expected order for 126 was raised during a visit by India's foreign minister Salman Khurshid to Paris last week, they said.

"There is an option for procurement of an additional 63 aircrafts subsequently for which a separate contract would need to be signed," a source said.

"Presently the contract under negotiation is for 126 aircraft but we are talking about the follow-up."

India's contemplation of a much bigger than anticipated extension of its airpower will inevitably cause concern in neighbouring Pakistan given the permanently simmering tensions between the two countries.

The Indian press has estimated the value of the deal for 126 Rafales at $12 billion (nine billion euros).

A 50 per cent increase in the number of planes ordered would take it to around $18 billion, in a huge boost for the struggling French defence industry, although much of the economic benefit will be shared with India.

New Delhi selected France's Dassault Aviation as its preferred candidate to equip the Indian Air Force with new fighter jets in January 2012.

Under the deal on the table, the first 18 Rafales will be built in France but the next 108 will be assembled in India by Hindustan Aeronautics Ltd in Bangalore.

"The first aircraft will be delivered three years after signature of the contract," the source added.

An industry expert said the time lag reflected India's request for two-seater jets rather than the one-seater model that Dassault currently produces.

India has insisted that the deal involves significant technology transfer and that Indian suppliers secure work equivalent to around half of the value of the contract.

"The negociations for off-sets are progressing well," the source added.

The conclusion of the deal has been repeatedly delayed, with India having initially set a target of the end of last year, which slipped to March 31, 2013, the end of the current fiscal year.

French defence sources said last week that was unlikely to be met but voiced confidence it would finally be done, a stance echoed by Khurshid on his visit to Paris.

"We know good French wine takes time to mature and so do good contracts," Khurshid said after a meeting with French Foreign Minister Laurent Fabius.

"The contract details are being worked out. A decision has already been taken, just wait a little for the cork to pop and you'll have some good wine to taste."

Dassault and the French government are hoping that India's decision will have a positive influence on other potential buyers of the Rafale, who include Brazil, which is in the market for 36 planes, Canada, Malaysia and the United Arab Emirates.

The Rafale was used in a combat situation for the first time during the French-led Nato campaign which deposed Libyan dictator Moamer Kadhafi in 2011 and they have been active in Mali since the weekend.

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6 Ways Climate Change Will Affect You

Photograph by AP Photo/Marcio Jose Sanchez

The planet keeps getting hotter, new data showed this week. Especially in America, where 2012 was the warmest year ever recorded, by far. Every few years, the U.S. federal government engages hundreds of experts to assess the impacts of climate change, now and in the future.

From agriculture (pictured) to infrastructure to how humans consume energy, the National Climate Assessment Development Advisory Committee spotlights how a warming world may bring widespread disruption.

Farmers will see declines in some crops, while others will reap increased yields.

Won't more atmospheric carbon mean longer growing seasons? Not quite. Over the next several decades, the yield of virtually every crop in California's fertile Central Valley, from corn to wheat to rice and cotton, will drop by up to 30 percent, researchers expect. (Read about "The Carbon Bathtub" in National Geographic magazine.)

Lackluster pollination, driven by declines in bees due partly to the changing climate, is one reason. Government scientists also expect the warmer climate to shorten the length of the frosting season necessary for many crops to grow in the spring.

Aside from yields, climate change will also affect food processing, storage, and transportation—industries that require an increasing amount of expensive water and energy as global demand rises—leading to higher food prices.

Daniel Stone

Published January 16, 2013

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