[vox_mundi]

Cyberattacks targeting oil sector, researchers say

A series of cyberattacks has been targeting the oil and gas sector in what appears to be an effective variant of the so-called Nigerian email scam, security researchers said Monday.

Spain-based Panda Security claimed in a new report, "Phantom Menace", that 10 companies had been hit by the campaign, getting them to pay for non-existent crude.

According to Panda, the fraudsters offer a large amount of high-quality Bonny light crude oil from Nigeria, which is sought after due to its low sulfur content, "at a very competitive price."[/b]

The criminals are able to provide fake "documentary evidence that the product exists" and subsequently request the buyers make a deposit of $50,000 to $100,000.

"However, once they pay the money they are met with the nasty surprise that there is no oil," the report said.

Panda said it has identified the attackers but is unable to report the matter to authorities because none of the companies affected have come forward. Police can’t begin investigating because none of the firms affected are prepared to report the crime – preferring to keep quiet for fear of harming their corporate reputation.

Researchers at Panda managed to trace the attack back to a single actor operating from a suburb of Nigerian capital Lagos, by tracing the FTP connection used to send out the stolen data.

"Panda Security stands ready to identify the individual to authorities, but without any credible reports being volunteered by the alleged victims, the authorities are unable to launch their investigations or make any arrests," the company said in a statement.

It added that it hopes the report "will shed light on the potential damage of the Phantom Menace and encourage companies to take the necessary steps against the perpetrator."

Pdf: http://www.pandasecurity.com/mediacente ... ker-en.pdf
http://www.infosecurity-magazine.com/ne ... ights-oil/

FBI Cyber Notification: Chinese Cyber Espionage Against U.S. Government and Business Networks

The FBI is providing the following information with HIGH confidence:

The FBI has obtained information regarding one or more groups of cyber actors who have compromised and stolen sensitive business information from US commercial and government networks through cyber espionage. Analysis indicates a significant amount of the computer network exploitation activities emanated from infrastructure located within China. Any activity related to these groups detected on a network should be considered an indication of a compromise requiring extensive mitigation and contact with law enforcement.

[ROCKMAN]

"...preferring to keep quiet for fear of harming their corporate reputation."

Bullsh*t! This is not a cybercrime...it is a CRIME. A crime committed by both sides…sellers and buyers. For decades $billions in Nigerien oil have been stolen. I’m not talking about some local pulling a bbl of oil off a storage tank but full tanker loads of millions of bbls. Oil, just like your car or home, has a title. And just like those real properties a title can be verified. That’s the “legal paper work” they refer to. No legitimate refiner will buy oil without a verified title search. Otherwise they are subject to being sued by the oil’s legal owner.

We refer to such stolen production as “hot oil” and it’s even done in the US today but on a much smaller scale. And like any stolen item it’s sold on the black market at a discount…60% being typical. And just like drug money hot oil has to be “laundered” to make it legit so a refiner will buy it. I’ll skip the details of that since my sinuses are killing me and the noise of the keyboard really hurts.

Basically it’s one crook screwing another crook. I’ve got zero sympathy. I really hate folks who steal oil. Especially when it was my oil as has been done in the past. LOL.

[vox_mundi]

HOT OIL. Production of petroleum in violation of state or federal regulations or in excess of quotas became a serious problem, particularly in Texas, as soon as attempts were made to stem the overproduction and consequent price decline that followed the development of the vast East Texas oilfield, discovered in October 1930. Adoption of a proration plan by the principal oil states in 1931 caused such a frantic rush of drilling that the governors declared martial law in the Oklahoma and East Texas fields and sent national guardsmen to shut down the wells.

To evade the state proration laws and the federal regulation of interstate oil transportation imposed under the National Recovery Act, many independent producers resorted to trickery to increase their output.

Their methods included tapping underground pipes or reservoirs, loading trucks by moonlight, disguising oil trucks as moving vans, piping oil to moonshine refineries, and using dummy refineries that shipped oil labeled as gasoline.

One producer kept at the top of a derrick a lookout who shut off the illegal flow whenever investigators approached; another built a concrete blockhouse over his controls; several provided guns and cash for private guards delegated to deal with state agents, or cheerfully paid $1,000 fines that represented only a fraction of a day's profit.

The flow of hot oil reached its peak in late 1934 and early 1935. In this period illegal production from the East Texas field alone was estimated at 55,000 barrels a day by the Railroad Commission of Texas, at 90,000 to 150,000 barrels by some oilmen and federal officials. This throwing of excess oil on the market, which caused sporadic price wars and threatened to wreck production control, brought an investigation by a congressional committee.

Enforcement of quotas was achieved gradually after a new interstate compact, drawn in Dallas in February 1935, was ratified by the legislatures of the oil states and strengthened by passage of the Connally Act, which reimposed federal control of interstate oil shipments after court invalidation of that provided in the recovery act.

http://www.alixpartners.com/en/Publicat ... WdYAA.dpbs

Over the past year, global oil and gas companies have been repeatedly reminded of their exposure to risks associated with corruption. In February 2012, the securities and exchange commission (sec) charged three oil services executives with allegedly bribing customs officials in nigeria to obtain illicit permits for oil rigs in order to retain business under lucrative drilling contracts.1 more recently, several companies faced investigations involving alleged improper payments to customs officials in Kazakhstan.2

http://nigerianrc.org/blog/chinwe-ezeig ... s-sector-0

On September 25, 2013, Sanusi Lamido Sanusi, Central Bank of Nigeria Governor sent a letter[1] to President Goodluck Jonathan accusing Nigeria National Petroleum Company of non-repatriation to the Federal Account of US$49.8 billion constituting 76 percent of the crude oil sales proceeds from January 2012 to July 2013. This figure has subsequently been reconciled with the relevant government agencies and reduced to US$12 billion[2]. However, CBN still requests proof of payment for this amount.

These allegations and counterclaims raise questions about the accountability processes in Nigeria’s financial management system.

http://www.bbc.com/news/world-africa-24175264

The proceeds from stolen Nigerian crude oil sold each year on international markets are being laundered in world financial centres, a new report says.

The London-based think-tank Chatham House said Nigeria's oil was being looted on an "industrial scale".

Africa's biggest oil producer should be more proactive in sharing intelligence so foreign governments can help crack down on the organised crime, it said.

Losses account for 5% of Nigeria's total oil output, the report said.
A conservative estimate - with 100,000 barrels a day believed to be the minimum amount stolen - lost revenues to the Nigerian government this year will be $3.6bn (£2.2bn), Christina Katsouris, co-author of the report Nigeria's Criminal Crude: International Options to Combat the Export of Stolen Oil, said.

[ROCKMAN]

vox- Great story...thanks. Two points:

First: "In February 2012, the securities and exchange commission (sec) charged three oil services executives with allegedly bribing customs officials in Nigeria to obtain illicit permits for oil rigs in order to retain business under lucrative drilling contracts". Which is a big reason Chinese companies have such a huge advantage over US companies: not only is it not illegal for Chinese companies to brib but it's actually encouraged and at time subsidized.

Second: Now you know why the Texas Rangers are the law enforcement division that watches over the oil patch. You might take a chance to mess with Texas but you'll never want to mess with the Rangers. LOL

[Subjectivist]

It's not just an international problem, most oil wells in Ohio are stripper wells where the owner drives a circuit in a tank truck gathering what the pumps have put in a surface tank at each bore. A few years ago there was a problem with thieves going around collecting before the owners got there.

[ROCKMAN]

Years ago I spent more than a few nights sitting in the dark with a camera and a 12 guage wating for such thieves. But now we have automatic game cameras with night vision. Not nearly as exciting. LOL.

[rockdoc123]

The situation in Nigeria is exacerbated due to the high levels of corruption in the government.
A couple of years ago Schlumberger tried to sell the government a complete pipeline monitoring solution that included acoustic monitoring to identify leaks or hot taps and air survellance. Although there seemed to be lots of support at certain levels it was not approved by the government. The thought being that individuals in the government are getting money from the folks who are stealing oil.