The Soviet Union collapses in 1991, creating several new nations in Central Asia. Major US oil companies, including ExxonMobil, Texaco, Unocal, BP Amoco, Shell, and Enron, directly invest billions in these Central Asian nations, bribing heads of state to secure equity rights in the huge oil reserves in these regions. The oil companies commit to $35 billion in future direct investments in Kazakhstan. It is believed at the time that these oil fields will have an estimated $6 trillion potential value. US companies own approximately 75 percent of the rights. These companies, however, face the problem of having to pay exorbitant prices to Russia for use of the Russian pipelines to get the oil out. [New Yorker, 7/9/2001; Asia Times, 1/26/2002]
November 1993: Enron Power Plant Creates Demand for an Afghanistan Pipeline
The Indian government approves construction of Enron’s Dabhol power plant, located near Mumbai (Bombay) on the west coast of India. Enron has invested $3 billion, the largest single foreign investment in India’s history. Enron owns 65 percent of the Dabhol liquefied natural gas power plant, intended to provide one-fifth of India’s energy needs by 1997. [Indian Express, 2/27/2000; Asia Times, 1/18/2001] It is the largest gas-fired power plant in the world. Earlier in the year, the World Bank concluded that the plant was “not economically viable” and refused to invest in it. [New York Times, 3/20/2001]
1994-1997: US Supports Taliban Rise to Power
Journalist Ahmed Rashid, a long-time expert on Pakistan and Afghanistan, will later write in a book about the Taliban that the US supported the Taliban in its early years. “Between 1994 and 1996, the USA supported the Taliban politically through its allies Pakistan and Saudi Arabia, essentially because Washington viewed the Taliban as anti-Iranian, anti-Shia, and pro-Western. Between 1995 and 1997, US support was even more driven because of its backing for the Unocal [pipeline] project.” He notes that many US diplomats “saw them as messianic do-gooders—like born-again Christians from the American Bible Belt.” [Dreyfuss, 2005, pp. 326] Selig Harrison, a long-time regional expert with extensive CIA ties, will later say that he complained at the time about how Pakistani ISI support of the Taliban was backed by the CIA. “I warned them that we were creating a monster.” [Times of India, 3/7/2001] There is evidence the CIA may have helped supply the Taliban with weapons during the first months of their rise to power (see October 1994).
1995-November 2001: US Lobbies India Over Enron Power Plant
Enron’s $3 billion Dabhol, India power plant runs into trouble in 1995 when the Indian government temporarily cancels an agreement. The plant is projected to get its energy from the proposed Afghan pipeline and deliver it to the Indian government. Enron leader Ken Lay travels to India with Commerce Secretary Ron Brown the same year, and heavy lobbying by US officials continue in subsequent years. By summer 2001, the National Security Council leads a “Dabhol Working Group” with officials from various cabinet agencies to get the plant completed and functioning. US pressure on India intensifies until shortly before Enron files for bankruptcy in December 2001. US officials later claim their lobbying merely supported the $640 million of US government investment in the plant. But critics say the plant received unusually strong support under both the Clinton and Bush administrations. [New York Daily News, 1/18/2002; Washington Post, 1/19/2002]
September-October 1995: Unocal Obtains Turkmenistan Pipeline Deal
Oil company Unocal signs an $8 billion deal with Turkmenistan to construct two pipelines (one for oil, one for gas), as part of a larger plan for two pipelines intended to transport oil and gas from Turkmenistan through Afghanistan and into Pakistan. Before proceeding further, however, Unocal needs to execute agreements with Pakistan and Afghanistan; Pakistan and Ahmed Shah Massoud’s government in Afghanistan, however, have already signed a pipeline deal with an Argentinean company. Henry Kissinger, hired as speaker for a special dinner in New York to announce the Turkmenistan pipeline deal, says the Unocal plan represents a “triumph of hope over experience.” Unocal will later open an office in Kabul, weeks after the Taliban capture of the capital in late 1996 and will interact with the Taliban, seeking support for its pipeline until at least December 1997. [Coll, 2004, pp. 301-13, 329, 338, 364-66]
December 1995: Caspian Sea Said to Contain Two-Thirds of World’s Known Oil Reserves
The American Petroleum Institute asserts that the states bordering the Caspian Sea, north of Afghanistan, contain two-thirds of the world’s known reserves, or 659 billion barrels. Such numbers spur demand for an Afghan pipeline. However, by April 1997, estimates drop to 179 billion barrels. [Middle East Journal, 9/22/2000] This is still substantial, but the estimates continue to drop in future years (see November 1, 2002).
1996-September 11, 2001: Enron Gives Taliban Millions in Bribes in Effort to Get Afghan Pipeline Built
The Associated Press will later report that the Enron corporation bribes Taliban officials as part of a “no-holds-barred bid to strike a deal for an energy pipeline in Afghanistan.” Atul Davda, a senior director for Enron’s International Division, will later claim, “Enron had intimate contact with Taliban officials.” Presumably this effort began around 1996, when a power plant Enron was building in India ran into trouble and Enron began an attempt to supply it with natural gas via a planned pipeline through Afghanistan (see 1995-November 2001 and June 24, 1996). In 1997, Enron executives privately meet with Taliban officials in Texas (see December 4, 1997). They are “given the red-carpet treatment and promised a fortune if the deal [goes] through.” It is alleged Enron secretly employs CIA agents to carry out its dealings overseas. According to a CIA source, “Enron proposed to pay the Taliban large sums of money in a ‘tax’ on every cubic foot of gas and oil shipped through a pipeline they planned to build.” This source claims Enron paid more than $400 million for a feasibility study on the pipeline and “a large portion of that cost was pay-offs to the Taliban.” Enron continues to encourage the Taliban about the pipeline even after Unocal officially gives up on the pipeline in the wake of the African embassy bombings (see December 5, 1998). An investigation after Enron’s collapse in 2001 (see December 2, 2001) will determine that some of this pay-off money ended up funding al-Qaeda. [Associated Press, 3/7/2002]
May 1996: US Seeks Stability in Afghanistan for Unocal Pipeline
Robin Raphel, Deputy Secretary of State for South Asia, speaks to the Russian Deputy Foreign Minister about Afghanistan. She says that the US government “now hopes that peace in the region will facilitate US business interests,” such as the proposed Unocal gas pipeline from Turkmenistan through Afghanistan to Pakistan. [Coll, 2004, pp. 330]
June 24, 1996: Uzbekistan Cuts a Deal with Enron
Uzbekistan signs a deal with Enron “that could lead to joint development of the Central Asian nation’s potentially rich natural gas fields.” [Houston Chronicle, 6/25/1996] The $1.3 billion venture teams Enron with the state companies of Russia and Uzbekistan. [Houston Chronicle, 6/30/1996] On July 8, 1996, the US government agrees to give $400 million to help Enron and an Uzbek state company develop these natural gas fields. [Oil & Gas Journal, 7/8/1996]
August 13, 1996: Unocal, Delta Oil Plan Afghan Pipeline
Unocal and Delta Oil of Saudi Arabia reach agreement with state companies in Turkmenistan and Russia to build a natural gas pipeline from Turkmenistan to Pakistan via Afghanistan; the agreement is finalized in 1997. [Unocal, 8/13/1996]
