Tag: BP

  • Ex-spy is BP’s Lawrence of Arabia

    Ex-spy is BP’s Lawrence of Arabia

    By Glen Owen
    Last updated at 3:48 AM on 06th September 2009

    He is the modern Lawrence of Arabia who used his relationship with Colonel Gaddafi to help to secure a £200,000-a-year job with BP.

    The career of ex-MI6 agent Sir Mark Allen, the driving force behind the suspected ‘deal’ to return Abdelbaset Al Megrahi to Libya, reads like an espionage novel, taking in Middle East spy schools, falconry and secret meetings in Pall Mall gentlemen’s clubs.

    Our investigation has discovered how Sir Mark, 59 – who resigned from MI6 to join BP in 2004 – used the contacts made during a life in the shadows to build a new career in business.

     

    adsiz-2Sir Mark Allan, a modern Lawrence of Arabia, was the driving force behind the suspected ‘deal’ to return Abedlbaset Al Megrahi to Libya

    It reveals that he:

    • Led the diplomatic drive to lift sanctions against Libya, teaming up with a top CIA agent for private meetings with Colonel Gaddafi.
    • Chaired a secret meeting with Gaddafi’s spy chief in The Travellers Club in London, which included discussion of the Megrahi case and led to the Libyan leader being allowed to trade again with the West.
    • Resigned from MI6 six months later to join BP and was cleared by the Cabinet Office to start working for the oil giant immediately.
    • Is a friend of Justice Secretary Jack Straw, who backed his unsuccessful attempt to head MI6.

    The Mail on Sunday tracked Sir Mark to his secure £1million apartment in Westminster but he refused to talk about the role he may have had in securing Megrahi’s return.

    Last week it was revealed that he lobbied Mr Straw to speed up an agreement over prisoner transfers – which had been expected to lead to Megrahi’s return – to avoid jeopardising a trade deal with Libya worth up to £15billion to BP.

     

    Allen’s book, Falconery In Arabia which was published in 1980

    Yesterday Mr Straw admitted the agreement had played a ‘very big part’ in his decision to include Megrahi in the transfer deal.

    In 2003, Sir Mark, then head of MI6’s counter-terrorism unit, joined forces with Steve Kappes, now deputy director of the CIA, to lead secret talks with Gaddafi’s regime to end international sanctions.

    The two men embarked on shuttle diplomacy, flying around the world to meet senior Libyan figures, including Gaddafi.

    Pulitzer prize-winning US author Ron Suskind, who has investigated British and American dealings with Gaddafi, said Sir Mark had several meetings with the Libyan leader in summer 2003.

    ‘He played a key role in charming Gaddafi out of his international isolation,’ he said. ‘His job was to make it clear to Gaddafi that anything could be put on the negotiating table, including Megrahi.’ At that point, Megrahi had been in a Scottish jail for two years.

    A deal to end sanctions was sealed in December 2003 at The Travellers Club, where Sir Mark thrashed out an agreement with Gaddafi’s external intelligence chief Musa Kousa.

    In return for the lifting of sanctions – and, sources say, assurances from Britain about Megrahi’s future – Gaddafi promised to abandon plans for weapons of mass destruction. Britain and America resumed relations the next month.

    In May 2004, Sir Mark was the favourite of Mr Straw, then Foreign Secretary, to succeed Sir Richard Dearlove as Head of MI6. But the following month, after it was announced that the job had gone to John Scarlett, Sir Mark resigned to take up a special adviser’s job with BP. 

    Unlike Sir Jeremy Greenstock, Britain’s special representative to Iraq who joined BP at the same time, Sir Mark was told by the Cabinet Office’s Advisory Committee on Business Appointments that he could start work immediately.

    Sir Mark, who was knighted in 2005, immediately used his Libyan contacts in BP’s drive to win gas and oil contracts in the country, flying with the then BP boss Lord Browne to meet Gaddafi in the desert.

    The BP deal with Libya was announced in May 2007. But by November it had still not been ratified because of delays in finalising prisoner transfers which had been arranged between Tony Blair and Gaddafi in tandem with the BP deal. The sticking point was debate in the British Government over whether to exclude Megrahi.

    Sir Mark made two calls to Mr Straw, asking for the agreement to be speeded up. Within six weeks of his second call in November 2007, Mr Straw had written to Scottish Justice Minister Kenny MacAskill to say Megrahi would be included.

    In the Seventies, Sir Mark studied at the Middle East Centre for Arabic Studies, a British ‘spy school’ in a village near Beirut.

    He was posted to Cairo in 1978, where he developed a love of falcon-hunting with Bedouins.

    In 1980 he published Falconry In Arabia, with a foreword and photos by Wilfred

    Thesiger, the late writer-explorer who devoted his life to roaming deserts in the spirit of Lawrence of Arabia.

    A BP spokeswoman refused to comment yesterday.

  • Turkey fines BP over duty-free sales

    Turkey fines BP over duty-free sales

    By Delphine Strauss in Ankara

    Published: March 5 2009 02:45 | Last updated: March 5 2009 02:45

    Sales of duty-free petrol to truckers crossing Turkey’s borders with Greece and Bulgaria have landed BP’s local unit with a tax fine of 474m Turkish lira ($275m), the oil group confirmed on Wednesday.

    BP, which was notified of the fine late on Tuesday, said it would “pursue all avenues” to overturn it, including appealing against it in court or seeking a settlement with the tax authorities.

    The total of TL474m includes back taxes, interest and penalties.

    BP claims to be one of the largest foreign-owned investors in Turkey, operating the country’s second-biggest chain of petrol stations as well as the Baku-Tblisi-Ceyhan pipeline carrying Azeri crude oil to the Mediterranean.

    Murat Lecompte, BP’s spokesman in Istanbul, said the fine related to petrol sales by a dealer named Bilnam that BP supplied between 2006 and 2008, operating in the duty-free area next to the borders where many trucks stop to refuel.

    Trucks entering Turkey have to pay special consumption tax and value-added tax if they buy more than 550 litres of fuel.

    The measure is intended to stop smuggling, a perennial problem in Turkey where petrol taxes are among the world’s highest.

    The finance ministry claims the 550-litre limit also applies to trucks leaving Turkey, whereas BP contends that because of a policy of promoting exports the regulations set no limit and outbound trucks can fill up tax-free – reclaiming VAT afterwards.

    It is the second time in a month that Turkey’s finance ministry has imposed a tax fine running into hundreds of millions, and comes while controversy is still raging over a penalty of TL826m levied on the Dogan media group, which is now in open conflict with the government.

    But Turkey badly needs to boost tax revenues in a year when it will be hard hit by the slump in economic activity.

    It will also be required to improve tax collection if it wants to seal a new financing package with the International Monetary Fund.

    But the finance ministry’s zeal in pursuing corporate taxes contrasts with prime minister Recep Tayyip Erdogan’s public rejection of measures he said the IMF had demanded to clamp down on income tax evasion.

    Mr Lecompte said the fine, levied on BP rather than Bilnam, had taken the group “totally by surprise” and that it felt applying the 550-litre limit retrospectively was a misinterpretation of the regulations.