Staff evacuated as rocket strikes near foreign oil firms in Iraq

Iraqi soldiers sit on a tank at the entry of Zubair oilfield after a rocket struck the site of residential and operations headquarters of several oil companies at Burjesia area, in Basra, Iraq June 19, 2019. REUTERS/Essam Al-Sudani

By Aref Mohammed and Ahmed Rasheed

BASRA, Iraq (Reuters) – A rocket hit a site in southern Iraq used by foreign oil companies on Wednesday, including U.S. energy giant ExxonMobil, wounding three people and threatening to further escalate U.S.-Iran tensions in the region.

There was no immediate claim of responsibility for the attack near Iraq’s southern city of Basra, the fourth time in a week that rockets have struck near U.S. installations.

Three previous attacks on or near military bases housing U.S. forces near Baghdad and Mosul caused no casualties or major damage. None of those incidents were claimed.

An Iraqi security source said it appeared that Iran-backed groups in southern Iraq were behind the Basra incident.

“According to our sources, the team (that launched the rocket) is made up of more than one group and were well trained in missile launching,” the security source said.

He said they had received a tip-off several days ago the U.S. consulate in Basra might be targeted but were taken by surprise when the rocket hit the oil site.

Iranian officials have made no comment about the attack but have strongly denied all other allegations against them of attacking energy tankers and facilities in the region.

Abbas Maher, mayor of the nearby town of Zubair, said he believed Iran-backed groups had specifically targeted Exxon to “send a message” to the United States.

U.S.-Iranian hostility has risen since President Donald Trump withdrew Washington from a 2015 nuclear deal with Iran and other world powers in May last year.

Trump has since reimposed and extended U.S. sanctions on Iran, forcing states to boycott Iranian oil or face sanctions of their own. Tehran has threatened to abandon the nuclear pact unless other signatories act to rein in the United States.

The U.S. face-off with Iran reached a new pitch following attacks on oil tankers in the Gulf in May and June that Washington blames on Tehran. Iran denies any involvement.

ESCALATION FEARED

While the long-time foes say they do not want war, the United States has reinforced its military presence in the region and analysts say violence could nonetheless escalate.

Some Western officials have said the recent attacks appear designed to show Iran could sow chaos if it wanted.

Iraqi officials fear their country, where powerful Iran-backed Shi’ite Muslim militias operate in close proximity to some 5,200 U.S. troops, could become an arena for escalation.

The United States has pressed Iraq’s government to rein in Iran-backed paramilitary groups, a tall order for a cabinet that suffers from its own political divisions.

Iraq’s military said three people were wounded in Wednesday’s strike by a short-range Katyusha missile. It struck the Burjesia site, west of Basra, which is near the Zubair oilfield operated Italy’s Eni SpA.

Police said the rocket landed 100 meters from the part of the site used as a residence and operations center by Exxon. Some 21 Exxon staff were evacuated by plane to Dubai, a security source said.

Zubair mayor Maher said the rocket was fired from farmland around 3-4 km (2 miles) from the site. A second rocket landed to the northwest of Burjesia, near a site of oil services company Oilserv, but did not explode, he said.

“We cannot separate this from regional developments, meaning the U.S.-Iranian conflict,” Maher said.

“These incidents have political objectives … it seems some sides did not like the return of Exxon staff.”

EXPORTS UNAFFECTED

Exxon had evacuated its staff from Basra after a partial U.S. Baghdad embassy evacuation in May and staff had just begun to return.

Burjesia is also used as a headquarters by Royal Dutch Shell PLC and Eni., according to Iraqi oil officials.

The officials said operations including exports from southern Iraq were not affected.

A separate Iraqi oil official, who oversees foreign operations in the south, said the other foreign firms had no plans to evacuate and would operate as normal.

A Shell spokesman said its employees had “not been subject to the attack … and we continue normal operations in Iraq.”

Eni say its operations were also proceeding as normal after the rocket exploded “several kilometers” from its facilities.

Wednesday’s rocket strike fits into a pattern of attacks since May, when four tankers in the Gulf and two Saudi oil pumping stations were attacked.

They have been accompanied by a spate of incidents inside Shi’ite-dominated Iraq, which is allied both to the United States and fellow Shi’ite Muslim Iran.

The attacks in Iraq have caused less damage but have all taken place near U.S. military, diplomatic or civilian installations, raising suspicions they were part of a campaign.

A rocket landed near the U.S. embassy in Baghdad last month causing no damage or casualties. The United States had already evacuated hundreds of diplomatic staff from the embassy, citing unspecified threats from Iran.

Iran backs a number of Iraqi Shi’ite militias which have grown more powerful after helping defeat Islamic State.

Iraqi officials say that threats from Iran cited by Washington when it sent additional forces to the Middle East last month included the positioning by Iran-backed militias of rockets near U.S. forces.

Rockets hit on or near three separate military bases housing U.S. forces near Baghdad and in the northern city of Mosul in three separate attacks since Friday.

(Additional reporting by Rania El Gamal in Dubai, Stephen Jewkes in; Writing by John Davison; Editing by Clarence Fernandez, Jon Boyle and Andrew Cawthorne and Alison Williams)

Pentagon warns on risk of Chinese submarines in Arctic

FILE PHOTO: The Pentagon in Washington, U.S., is seen from aboard Air Force One, March 29, 2018. REUTERS/Yuri Gripas

By Phil Stewart and Idrees Ali

WASHINGTON (Reuters) – Deepening Chinese activities in the Arctic region could pave the way for a strengthened military presence, including the deployment of submarines to act as deterrents against nuclear attack, the Pentagon said in a report released on Thursday.

The assessment is included in the U.S. military’s annual report to Congress on China’s armed forces and follows Beijing’s publication of its first official Arctic policy white paper in June.

In that paper, China outlined plans to develop shipping lanes opened up by global warming to form a “Polar Silk Road” – building on President Xi Jinping’s signature Belt and Road Initiative.

China, despite being a non-Arctic state, is increasingly active in the polar region and became an observer member of the Arctic Council in 2013. That has prompted concerns from Arctic states over Beijing’s long-term strategic objectives, including possible military deployments.

U.S. Secretary of State Mike Pompeo will attend the meeting of the eight-nation Arctic Council in Rovaniemi, Finland, starting on Monday, which comes amid concerns over China’s increased commercial interests in the Arctic.

The Pentagon report noted that Denmark has expressed concern about China’s interest in Greenland, which has included proposals to establish a research station and a satellite ground station, renovate airports and expand mining.

“Civilian research could support a strengthened Chinese military presence in the Arctic Ocean, which could include deploying submarines to the region as a deterrent against nuclear attacks,” the report said.

The Pentagon report noted that China’s military has made modernizing its submarine fleet a high priority. China’s navy operates four nuclear-powered ballistic missile submarines, six nuclear-powered attack submarines and 50 conventionally powered attack submarines, the report said.

“The speed of growth of the submarine force has slowed and (it) will likely grow to between 65 and 70 submarines by 2020,” the report predicted.

The report said China had built six Jin-class submarines, with four operational and two under construction at Huludao Shipyard.

In a January report, the Pentagon’s Defense Intelligence Agency said the Chinese navy would need a minimum of five Jin-class submarines to maintain a continuous nuclear deterrence at sea.

The United States and its allies, in turn, are expanding their anti-submarine naval deployments across East Asia. This includes stepped-up patrols of America’s advanced, sub-hunting P-8 Poseidon planes out of Singapore and Japan.

TAIWAN CONTINGENCY

The expansion of China’s submarine forces is just one element of a broad, and costly, modernization of its military, which U.S. experts say is designed largely to deter any action by America’s armed forces.

Although Beijing’s official defense budget for 2018 was $175 billion, the Pentagon estimated that China’s budget actually topped $200 billion, when including research, development and foreign weapons procurement. It estimated that China’s official defense budget would likely grow to about $260 billion by 2022.

Much of China’s military doctrine is focused on self-ruled Taiwan, which Beijing sees as a renegade province.

On Jan. 2, Xi said in a speech that China reserved the right to use force to bring Taiwan under its control but would strive to achieve peaceful “reunification.”

The Pentagon report outlined a number of potential scenarios that China might take if Beijing decides to use military force on Taiwan, including a comprehensive campaign “designed to force Taiwan to capitulate to unification or unification dialogue.”

But the U.S. analysis appeared to downplay prospects for a large-scale amphibious Chinese invasion, saying that could strain its armed forces and invite international intervention. It also noted the possibility of limited missile strikes.

“China could use missile attacks and precision air strikes against air defense systems, including air bases, radar sites, missiles, space assets, and communications facilities to degrade Taiwan’s defenses, neutralize Taiwan’s leadership, or break the Taiwan people’s resolve,” the report said.

China has repeatedly sent military aircraft and ships to circle the island on drills in the past few years and worked to isolate Taiwan internationally, whittling down its few remaining diplomatic allies.

It has also strongly objected to U.S. warship passages through the Taiwan Strait, which have greatly increased in frequency in the past year.

Taiwan’s military is significantly smaller than China’s, a gap that the Pentagon noted is growing year by year.

Recognizing the disparity, the Pentagon report noted: “Taiwan has stated that it is working to develop new concepts and capabilities for asymmetric warfare.”

(Reporting by Phil Stewart and Idrees Ali in Washington; Editing by James Dalgleish and Leslie Adler)