SOMALIA'S PETROLEUM SECTOR: OPPORTUNITIES AND CHALLENGES

by Abdullahi Warfa Monday, September 08, 2014 The strategic plan of the Somalia government is based on the six pillars that president Hassan Sheikh committed to as a way to reverse war torn Somalia back to the international community. In his six pillars, economic and development strategy is recognized as one of the factors that could potentially generate stabilization in Somalia, and it is this reason that petroleum and Mineral resources portfolio has been created to contribute to the government’s vision for 2016. Somalia has abundant natural resources that can be sustainably exploited to generate economic growth and transform the country from predominantly being dependent on international community to self-sufficient country. However, the government recognizes that the economy has structural problems that resulted from more than 20 years of civil war and destroyed all infrastructures necessary for the government to function.    In light of this, the Ministry of petroleum and natural resources has taken steps to protect and promote the sector through the formulation of clear petroleum and mineral policy. Petroleum development Somalia is often thought of as a semi-nomadic society with little focus on agricultural activities. Consequently, the petroleum and mineral sector has not been utilized. Lack of technical capacity and inadequate foreign and local investment also contributed to the lack of sector development. There is high potential y for gas and oil discovery in Somalia and other expensive mineral resources such as uranium, heavy minerals, strontianite, phosphates, bauxite,gypsum, vermiculite, limestone, dimension stone silica and coal. Adequate and up to date geological information is very important for attracting investment in this field. Based on data collected about geological frameworks, there is ageneral conviction that full mineral and petroleum capacity of the country is yet unknown. The available data shows high potential for gas and oil and mineral resources in the country but not sufficient enough to specify the exact capacity available for production. Therefore basic geology work is required to determine and confirm the exact potential.  Modern technological advances would be needed to discover potential area and the amount of gas and oil in the country. This was the driving force for the recent agreement the government signed with the company Soma Oil and Gas - to do seismic surveying and establish the full extent of the country’s oil and gas potential.  The ministry of petroleum and Natural minerals took this step to overcome the challenges that has been present in the form of; a) inadequate geological data and information about potential oil and gas in Somalia, b) insufficient financial resources for generation and updating of basic geological data available, and c) lack of analytical laboratory technologies and human resources within the country. The development of the sector also requires capacity building, training and technological development as the country suffers from lack of enough facilities for training centers,and technical capacity and skilled personnel. Local participation and support infrastructure For long time even, before the civil war in Somalia, local participation was hindered by lack of financial and technical capacity and expertise in the sector. The Minister’s policy for this matter is to encourage joint ventures with companies that have the needed resources, with long term aim of empowering local participation. On the other hand, most of the infrastructure has been destroyed during the civil war in Somalia and the government recognizes that the sector is unlikely to develop unless improvements are made with regards to security, transport network, water, and electricity. The Ministry of petroleum is working with other government departments and agencies to put together efforts for developing an infrastructure strategy to overcome these challenges. Investment opportunity and governance of the sector The key to development and sustainable economy depends largely on number of factors including long-term political, security and macro-economic stability. Therefore, the Ministry of Petroleum is committed to creating a favorable climate that is attractive to potential investors. Such strategy includes establishing an integrated and enabling environment consistent with real practice that can provide a confidence to the investors.As matter of fact, security and Macro-economic stability tops government’s priorities in this matter.  Also, the practices and management of the sector is important to investing in the sector. The ministry’s role in this regard is to (1) provide information in relation to geological surveys to the investing companies, (2) Monitor and regulate the sector and (3) creating secure environment or investors.   Institutional arrangements and Legislative and regulatory framework The country does not have enough institutional capacity for managing all government affairs. The minister of Petroleum Hon. Daud Bisinle brought in more than 10 Somali experts in the field and working across all departments of the ministry.  These experts formulate appropriate policies to facilitate and accelerate sustainable development in the sector. They also review and scrutinize all applications for gas and oil rights and report to the ministry their recommendations. In regards to the regulatory framework, several acts have been in place but not activated. Among these acts is the Petroleum law 2008. This defines rights, duties and obligations of the government. The ministry of Petroleum and Natural resources is in process of reviewing the petroleum law and harmonizing it with other legislation. Environmental management and other related issues Petroleum and gas exploration activities cause environmental degradation and sometimes companies do not comply with international standards for occupational health and safety. Also companies often do not comply with environmental management during operations. The government will make sure companies comply and follow international standards put place to safeguard the environment.   Social issues also should be taken into consideration when exploring Gas and Oil,including empowering local people and being socially responsible, for example by avoiding child labor and other social injustices.

SOMALIA DEAL RAISES CONCERNS ABOUT RISKS ON OIL & GAS

Tuesday, August 13, 2013 The signing of the new Somali government’s first oil contract with an untested company linked to a British peer raises concerns about whether the dash for oil wealth will destabilise the east African country. Last week, Michael Howard, a former leader of Britain’s ruling Conservative party and chairman of Soma Oil and Gas Exploration , signed a contract in Somalia with Mogadishu to collect data on onshore and offshore oil . It was the first such contract by any international company. In exchange for collecting data, Soma has the right to apply for up to 12 oil blocks in an area seen by oil majors as one of the final frontiers for the commodity. The company, which has not undertaken a seismic survey before, was incorporated in the UK last month with capital of £0.001. “We have looked [at] the contract from the perspective of what’s good for Somalia,” said Abdirizak Omar Mohamed, Somalia’s natural resources minister. The newly formed government of which he is a member is the first Mogadishu administration to gain international recogntion in decades. “This investment is going to be very good for the country and we’re hoping that other investors come too,” he said. “These are people . . . who have expertise in the area of oil and gas, and people who are well respected in the UK.” The Mogadishu government had said in May that it would not sign any oil deals until contradictions within the legal framework were ironed out. It has yet to do this, but the minister said they intended to do so. “I do not think this deal was done transparently at all,” said Abdillahi Mohamud at the East African Energy Forum, a lobby group consulted by Somali parliamentarians who are considering their reaction to the deal. As the UK, Norway, Turkey, Qatar and others vie to gain influence in Somalia’s oil-rich waters, analysts fear big-power oil politics could put its fragile recovery off course. A UN panel of experts cautioned in a report last month that oil could lead to conflict between rival groups – some of which have previously been allied to al-Qaeda-affiliated jihadists – and threaten peace. “[Oil] companies should cease and desist negotiations with Somali authorities,” the UN panel said in last month’s report to the Security Council. Mr Abdillahi sees the deal in the context of regional politics. “This [the deal] is about . . .[the central government] attempting to gain the upper hand namely on [the regions],” says Mr Abdillahi. He believes there may be “many hidden agendas” and believes the deal is “political in nature”. The deal has unsettled some industry observers who had expected a public licensing round for all the oil blocks. Other more experienced companies had also been queueing up for contracts to undertake surveys. They say it is unusual for Soma, once it has gathered the data, to be able to cherry-pick the best dozen blocks. Some oil majors, including Shell and Total, have put their claims to oil blocks they signed for in the late 1980s on ice until, Shell says, “conditions allow”. Soma says it will not impinge on their areas, nor on territories that do not acknowledge the Mogadishu government, such as Somaliland and Puntland. Soma’s management can draw on an “absolutely unrivalled track record”, Lord Howard said in an interview with the Financial Times, pointing to Soma chief executive Robert Sheppard, an adviser to BP in Russia. The company can also easily raise the money, he said. “I think our agreement is very much in the interests of the people of Somalia,” he said. Asked about the preferential access to the oil blocks in return for the geological databank, Lord Howard said it is “obvious . . . that we should have a quid pro quo”. The deal has prompted some concern from the UK’s diplomatic partners about the UK’s relationship with Somalia. Mark Simmonds, UK Africa minister, hosted a government-sponsored investment event on May 8, in which the Somali president and 16 UK energy companies, including Lord Howard’s, took part. Senior UK civil servants also met Lord Howard on June 7 to discuss Somalia. “The UK is promoting transparent and accountable government [but it] hosted a conference and invited all of us,” said a diplomat who follows Somalia closely. “Then that momentum was used to promote British business interests: that could maybe have been more transparent.” Mr Sheppard, Soma chief executive, said he didn’t know “why they’ve [the government] accepted it now when earlier they might not have”. Both sides had independent legal advice and Lord Howard said that he “went to some lengths to impress on the Somali government that it was very important that they had independent legal advice”. He added that he had checked with the UK government to ensure he was doing nothing against UK policy. “I don’t think I’m there for any political influence, I don’t think I have any political influence any longer,” he said. But the reason the deal went ahead “may well be because of the leading role that the UK government has taken that [the Somali government] were well disposed towards a British company”.

MEMOIRS: - HOPES AND HYPES ON THE NEW FRONTIER:

Looking back 22 Years Articles and Memoirs Petroleum Economist. Vol 58, Issue n10, Oct, 1991, p19(2). Maria Kielmas A UN-funded study points to oil potential in Ethiopia and Somalia. Maria Kielmas talked to emerging rulers in the region about their oil policies. Wars in countries comprising the Horn of Africa put on hold the first real spark of international industry interest in the region's oil prospects. As a variety of political factions wrestle for control in Ethiopia and Somalia, only one group, the Somali National Movement (SNM), which controls the self-proclaimed Republic of Somaliland in northern Somalia, has maintained a positive policy towards foreign oil investment. Aside from the political conflict, oil exploration in the African Horn has generally been neglected because of a widespread perception throughout the industry that the region is gas-prone and both inaccessible and expensive to explore. The countries around the Gulf of Aden and Red Sea are regarded as too poor to afford the necessary infrastructure for gas development. International Study In an attempt to address the balance and provide a more considered view of petroleum potential, the World Bank and United Nations Development Programme (UNDP) devised a regional hydrocarbon study of the countries bordering the Red Sea and Gulf of Aden. Financed by the UNDP, in co-operation with the governments of France, Britain and Canada, and several oil companies, the study began work in 1988. All the countries along this coastline participated from the outset, although Saudi Arabia has since dropped out, claiming it has its own plans for Red Sea exploration. The study managed to collect all relevant technical information from both Ethiopia and Somalia before this year's fighting broke out. Results of analysis to date, which indicate that the region is definitely oil-prone as well as gas-prone, are to be presented at this month's meeting of the American Association of Petroleum Geologists, Eastern Hemisphere group, in London. Somali Movements Regional connoisseurs pick out northern Somalia as particularly prospective. Exploration here dates from the turn of the century and was conducted in the former colony of British Somaliland and was conducted by British and Italian geologists. The area rewarded explorers with numerous oil seeps and gas shows in wells drilled in the 1960s. It is geologically analogous, in parts, to southern Yemen, on the other side of the Gulf of Aden, and almost the entire area was under licence to companies by the time hostilities with the central government broke out in 1988. All of the oil companies operating in the area at the time - Amoco, Chevron, Agip and Conoco - declared force majeure, but the separatist rebel group, the SNM, maintained contact with them. The companies' view, expressed privately, was that if a separate northern Somali state could provide the usual internationally-acceptable contract conditions, then, in principle, they would be prepared to resume work when it was safe. The "Republic of Somaliland" corresponds " to the last mile" to the territory of British Somaliland, SNM spokesmen say. But this boundary cuts through permits held by Agip and Conoco. Currently under the control of the SNM the area is reportedly enjoying a degree of peace unheard of since the beginning of deposed president Siyad Barre's rule more than 20 years ago. The core of the peace is a deal struck between the mainly Isaaq clan of SNM and minority Warsengeli, Dulbahante and Gadabursi clans. Talks with oil firms The SNM also claims it has reached a tentative agreement with oil companies. Espousing pro-market policies, SNM spokesmen say they are committed to a mixed economy and foreign investment. All foreign companies are welcome to explore in the territory on condition that they do not prevent other companies from doing the same. But one of main problems to overcome before any work can begin is the clearing of more than one million land mines planted by the Mogadishu forces. The SNM has received tacit support from Yemen, where it has an office and where it has met up with oil company officials. SNM officials are now in the process of drafting their own petroleum contract terms, but, inexplicably, have no access to existing contract wordings issued by the ousted Barre government. Yet to be recognised Regional analysts believe that attempts to consolidate a separate northern state could be scuppered by Saudi Arabia, a country which has never shown much enthusiasm for oil development in noughbouring states. The Arab League has shown little desire for a new, separate country either. The Republic of Somaliland has yet to be recognised by any other state, but some observers feel this could happen by default, since it at least functions, while no other part of Somalia works at all. Representative from the United Somali Congress (USC), nominally in charge in Mogadishu, have also met with oil company officials, in particular Conoco, both in Somalia and in Rome. However, no news of any agreement has emerged from these meetings. Pectin is the biggest licence holders in Somalia proper, with four offshore blocks along the Indian Ocean shelf, extending approximately from Bander Beyle to south of Mogadishu. Further onshore blocks are held by Amoco and Phillips. Ethiopian contracts Although new petroleum legislation was passed in 1984, it took Ethiopia until 1989 to award the first licences to foreign companies. Last year, the Mengistu government awarded two permits in the Ogaden province to US companies Maxus Energy and Hunt Oil. Maxus acquired a 110 800-square km area close to the northern Somali border, comprising four adjacent blocks, while Hunt signed up for a 44 000-square km area in the southern Ogaden, abutting Kenya and Somalia. Coming back The government reserves for itself an area around the Calub gasfield - discovered by Tenneco in 1974 and where reserves are thought to be about one trillion cubic feet - continuing appraisal work with Soviet help. Vancouver-based International Petroleum acquired the 34 000 square km Danakil Block along the Eritrean coast, farming out 60% and the operatorship to Amoco. Offshore, British Petroleum holds one area of 31 000 square km and was on the point of acquiring another block further north when the fighting escalated. All work halted as the war spread on land and BP declared force majeure last summer, when one of its seismic boats was fired on by rebels from the Eritrean Peoples' Liberation Front (EPLF). The exact legal status of contracts signed with the defunct Mengistu government is unclear. This problem is further exacerbated by an emerging statist policy on the part of the various Ethiopian and Eritrean groups. Most pundits predict that after the Eritrean referendum in two years' time, a loose Ethiopian confederation will emerge, allowing the Addis Ababa government continued access to the Red Sea ports of Asab and Massawa. Squabbles The new rulers in Addis Ababa, the Ethiopian Peoples' Revolutionary Democratic Front (EPRDF), and EPLF in Eritrea, say their first priority is to tackle famine relief and food shortages. But whatever stability exists, it is threatened by continued squabbling between factions divided on ethnic, religious and ideological lines. Notwithstanding public rhetoric about dumping their various Marxist ideologies, the EPRDF and the Tigrayan Peoples' Liberation Front, which has been enjoying a measure of US support, remain dominated by former university students still committed to the notion of a centralised, command economy. In this climate, it is unlikely that there will be any quick decision about oil company contracts, even if the stability holds. And if a decision does materialise, it is unlikely to be very favourable to the foreign companies. However, the most recent reports indicate that some Somali and Oromo groups within Ethiopia, which have embraced the same pro-market policies as the SNM in Somaliland, are emerging as power brokers. They may hold the balance between religious and ethnic divisions in the country.

JACKA RESOURCES FINDS PROMISING STRUCTURES IN SOMALILAND

Wednesday, March 06, 2013 by Bevis Yeo Jacka Resources (ASX: JKA) has confirmed the presence of large rift-basin structures, which typically form structural petroleum prospects, within the Odewayne block in Somaliland. These structures were interpreted from the preliminary gravity map from the 22,000 square kilometre airborne geophysics survey that was completed in February by operator Genel Energy (LON: GENL). Two additional basins have also been identified within the licence area. The presence of numerous verified oil/condensate seeps, potentially attractive structures, and the genetic relationship to the multi-billion barrel basins of Yemen results in a highly prospective play in this emerging petroleum province. Genel, a £2 billion market cap, is funding 100% of the exploration program in the Odewayne block until May 2015. Besides the airborne survey, which covered the entire block, Genel is also funding at least 1,500 kilometres of 2D seismic and an exploration well. Mobilisation for the seismic survey is scheduled for April this year, with acquisition expected to commence in May and to be completed by end October 2013. Genel recently indicated that the block has the potential to contain in excess of 1 billion barrels of prospective resources, on which they place a 15% probability of success at this early stage of exploration.

SOMALIA INKS OIL DEAL WITH BRITISH FORMER-TORY LEADER

Former leader of Britain's Conservative party Baron Howard ________________________________________ Somalia's government signed an oil and gas exploration deal on Tuesday with a British company chaired by a former leader of Britain's Conservative party, ministry and company officials said. Soma Oil and Gas, chaired by Michael Howard, a former home secretary who preceded Britain's Prime Minister David Cameron as Tory party leader, signed the deal to carry out offshore and onshore surveys. Somalia is fought over by multiple warlords, clan militia forces and Islamist insurgents while several autonomous regions do not obey the authority of central government. The Horn of Africa nation is challenging territory for even the most adventurous of oil companies. "It is expected that this will attract further investment and facilitate exploration in an area of immense economic potential for the nation," Somalia's Ministry of National Resources said in a statement. "The company will conduct seismic surveying to assist the development of Somalia's hydrocarbons sector," the statement added. It is the first oil deal signed by the internationally-backed government in Mogadishu, which took power last September, and is propped up by a 17,700-strong African Union force to fight off Al-Qaeda backed insurgents. Several of Somalia's potentially rich oil and gas blocs are claimed by rival companies, because deals were signed by the different authorities who emerged in the long years of war that followed the collapse of central government in 1991. Soma Oil and Gas, which was set up last year with a view to carrying out exploration in Somalia, will "conduct seismic surveying in Somalia's territorial waters in areas agreed with the government and in certain limited onshore areas," the company said in a statement. It will also "collate and reprocess historic seismic data using modern techniques" to prepare "an evaluation of Somalia's petroleum potential", the company added. Howard, now a life peer in the House of Lords, parliament's upper house, said the deal reflected the "close collaboration" between Britain and Somalia. "It is our intention to assist Somalia to develop an active hydrocarbons sector that will attract significant foreign investment to the country," Howard said in a statement. A United Nations Monitoring Group report last month warned that foreign oil exploration could further inflame conflict in the region. Source: AFP

SOMALILAND: GENEL ENERGY TO EXPLORE IN 2013

Genel Energy plans to conduct seismic work in northwestern Somalia early next year and drill its first well in the second quarter of 2014 and another well in 2015, company officials said. The London-listed explorer said in August it had the rights to two blocks, Block 13 and Block 10B, in the country's semi-autonomous Somaliland region. The area shares the same geological structure with oil producer Yemen and could have 1 billion barrels of oil, the company said. It plans to spend about $400 million drilling five wells in Africa overall over the next three years. 'Somaliland provides an exciting geological opportunity, and we look forward to starting work in the region,' said company spokesperson Andrew Benbow, in an email to Reuters on Tuesday. East Africa has recently become a major hub of oil and gas exploration activity, but Somalia has largely missed out due to violent conflicts that have made the Horn of Africa country unstable. In September, Somalia elected a new federal government, its first permanent government since 1991. Somali technocrats have said they now must sort out a tangle of overlapping oil and gas exploration licences issued over the past few decades by the former federal government and the semi-autonomous regions of Puntland and Somaliland. Genel Energy declined to comment about the political situation in Somalia but said it planned to move forward with exploration, despite speculation the new federal government might upend agreements made after 1991. The Somaliland licences are Genel's only exploration acreage in the region, although it has a number of contracts in west and north Africa. Original article link Source: Reuters ________________________________________

SOMALIA: SHELL CLINGS FIRMLY TO ITS PETROLEUM CONCESSIONS

The Indian Ocean Newsletter March 01, 2013 Shell`s permit in Somalia has lain idle for decades because of “force majeure” but the company clearly prizes the acreage. Executives of the Anglo-Dutch firm Shell Exploration & Production aren`t about to let go of a concession covering five blocks that the group acquired in Somalia in November, 1988 but which has remained idle under force majeure ever since. On Feb. 25, Tjalling Wiersma and Ayca Arisoy, who serve respectively as the legal and financial chiefs of Shell EP Somalia BV sent a warning letter to the American firm Liberty Petroleum Corporation (LPC). They claimed Liberty had acquired an oil prospecting license from the regional government of Galmudug which is headed out of the capital, Galkayo, by a former war lord, Abdi Hassan Awale Qeybdiid. In the letter, a copy of which has been obtained by the Indian Ocean Newsletter, Shell warned the American company that its “offshore block covers a part of blocks held by Shell” and on which Shell claims exclusive rights. The letter specified that all activity in the area “would constitute a clear violation of Shell`s exclusive rights.” Based in Phoenix, Arizona, Liberty Petroleum Corporation was founded in 1997 by Trent and Lane Franks. The latter took over the company when his brother Trent won a seat in the House of Representatives on a Conservative Party ticket. In addition to Lane Franks, LPC`s directors are Abdul Al Tawash, Saud Al Tawash, Travis Franks and Jonas Robertson. Another firm is also seeking oil licenses from the Galmudug government, namely Britain`s LGE Monsoon whose representative travelled to Mogadishu at the end of 2012.

SOMALIA SEEKS RETURN OF MAJORS TO UPSTREAM

Peter Kemp International Oil Daily Somalia is to ask oil companies to return to concessions they left when the central government collapsed in 1991 and considers exploration licenses granted by the semiautonomous Puntland region to new companies to be illegal, according to a senior government oil adviser. Major oil companies including Royal Dutch Shell, BP, ConocoPhillips and Eni have the right to resume exploration of blocks previously licensed directly by them or their predecessor companies, such as US Amoco, which is now part of BP, and they will have 12 months to take up the offer of new production sharing agreements (PSAs), Abdullahi Haider, senior adviser to Somalia`s energy ministry, said Monday. A new licensing round is also in the cards, possibly as early as next year, based on dividing the country into exploration blocks of 5,000 square kilometers each. The oil moves come as Islamist militants have been ousted from their last main stronghold, the southern port of Kismayo, by Kenyan armed forces and a new Somali government is about to be formed in Mogadishu to replace the internationally backed Transitional Federal Government (TFG) (IOD Jun.7`12). “The security situation is improving. The last spot the militants were controlling was Kismayo and the security [there] is now being taken care of,” Haider said. After the election of a parliamentary speaker and president by the newly elected parliament on Sep. 10, a new prime minister and cabinet are to be named “within a few days,” Haider told the CWC East Africa Oil & Gas conference in London on Monday. Plans call for the speedy relaunch of oil exploration onshore and offshore Somalia, based on a 2008 Petroleum Law drawn up under the TFG. The new PSC has a seven-year exploration period and a 20-year production phase, with a five-year extension. Haider said that Somalia`s oil law required that previous explorers who had declared force majeure on their activities in 1990-91, when the former regime of Siad Barre collapsed and Somalia descended into civil war, should be offered a new production sharing contract to replace their old concession agreements. As well as the majors, US Murphy Oil, Canadian Natural Resources, Talisman and Finland`s Neste were previously present, he said. Shell has already held talks with the authorities about reviving its offshore exploration rights, Haider told journalists on the sidelines of the conference, adding that France`s Total had secured offshore rights near Somalia`s disputed maritime frontier with Kenya. In a warning of potential conflict with its southern neighbor, the award by Kenya of deepwater exploration licenses in the northern Lamu Basin to Italy`s Eni, Norway`s Statoil and the US` Anadarko was “hugely contested” by Mogadishu, the government adviser warned. Somalia maintains that around 120,000 sq km of offshore acreage allocated under license by Kenya is in Somalia`s territorial waters. “The two governments have to discuss it,” said Haider. “First we have to clarify the maritime border.” Explorers in the northeast region of Puntland, where Horn Petroleum has recently drilled unsuccessfully, are also under threat if and when Mogadishu moves to reassert its authority to control all licensing and return abandoned concessions to their original holders (IOD Aug.29`12). “We have to tell regional authorities what they have been doing is not correct,” said Haider, referring to the Nugaal and Dharoor Valley licenses in Puntland held by Horn Petroleum, an affiliate of Canada-based Africa Oil Corp. with two Australian partners, Range Resources and Red Emperor. Their acreage was originally licensed to Conoco. “The previous concession holders must tell them their agreements are null and void,” Haider told journalists on the sidelines of the conference. “If they can`t settle it [in a] friendly [way] they will have to do the courts.” The Somaliland region in the northwest has declared independence from Somalia but has not received international recognition. UK-listed Ophir Energy is among companies with offshore exploration rights in Somaliland.

SOMA OIL AND GAS MAY INVEST $ 20 MILLION TO SURVEY WAR-TORN SOMALIA

Friday, August 09, 2013 Soma Oil & Gas Exploration Ltd., a U.K.-based company focused on Somalia, plans to invest about $20 million to survey the African nation rebuilding from decades of war, Chief Executive Officer Robert Sheppard said. The company will initially analyze any data that exists even after conflict destroyed a large part of the country’s infrastructure and thwarted efforts to establish a functioning central administration and the rule of law since 1991. “At the same time we will be looking at all the seismic ships available in the world to see when we can get on schedule for seismic surveying,” Sheppard said yesterday in a phone interview from London. Work to conduct a two-dimensional seismic study should be completed in 12 to 18 months, he said. Somalia’s government led by President Hassan Sheikh Mohamoud marks the 16th administration since the ouster of dictator Mohamed Siad Barre. The nation is positioned within a region where oil and gas discoveries over the past seven years have accelerated investment in exploration. In Kenya, where Tullow Oil Plc (TLW) discovered the country’s first crude deposit last year, output of oil is expected to start next year. The 2006 discovery of crude in Uganda may lead to commercial production by 2016, while explorers in natural-gas producing Tanzania have found the biggest reserves of the resource in eastern Africa after Mozambique. Soma Oil & Gas, which was founded this year and whose chairman is former British Conservative party leader Michael Howard, announced on Aug. 6 it agreed with Somalia to gather data from offshore areas and “limited” inland acreage. It plans to build a data bank on behalf of the government. “Depending on the data we find we will decide which blocks to apply for” exploration and drilling rights, Sheppard said. Somalia plans to increase the number of oil and gas exploration blocks to 300 of 5,000 square kilometers (1,931 square miles) each, after sub-dividing the existing 25 areas, Hussein Ali Ahmed, managing director of state-owned Somalia Petroleum Corp., said in April. Somalia aims to sign as many as 30 oil and gas production contracts this year, he said.

IMPERIALISM STIRS CONFLICT IN NORTH SOMALIA

British Tony Hayward makes a deal for Genel Oil in Puntland On Monday the 5th of November 2012, Somaliland forces mounted an offensive [1] against Khatumo state forces based in Hudun town. Hudun[2] town is situated in the western parts of Sool province, in what was a relatively peaceful area of Northern Somalia. Pro Somaliland media outlets reported [3] that “the skirmishes” were the result of elements who were trying to intimidate voters in the “local elections [4]” that was held in Somaliland. However the offensive launched by Somaliland on the 5th of November proved to be just the start of what would be a prolonged offensive campaign waged by Somaliland on Khatumo State forces based in Hudun town. Repeated [5] clashes followed on the 28th of November, the 1st, 31st of December, the 23th, 24th of January, the 1st, 13th of February 2013, with the most recent one being on the 8th of March. The offensive on the 8th of March followed the press release [6] by Jacka resources on 6th March of large structural petroleum prospects in North Somalia. In three months’ time Somaliland attacked Hudun a total of nine times. Sources close to Somaliland have confirmed Somaliland is planning a new major offensive. In spite of Somaliland’s continued offensive, Khatumo remains in firm control of Hudun town. Illegitimate Oil Deals Prior to the start of its offensive on the 5th of November, Somaliland signed a deal [7] on the 30th of October 2012 with Genel Energy Plc to drill two wells for Oil in Northwestern Somalia, on two blocks assigned by Somaliland. Soon after the deal Somaliland militia headed towards Hudun and attacked the town. Hudun town is situated on the Nugaal block [8], one of the blocks to be drilled for oil. The Nugaal block is a stretch of land situated in the regions of Sool, Sanaag and Cayn (Buhoodle town) in short the SSC [9] regions, and to a lesser extend Nugaal region. The Nugaal block has been sold [10] to oil companies by both Somaliland and Puntland. Somaliland has sold the land to Genel Energy led by Tony Hayward, the former BP CEO, who headed BP during the Gulf of Mexico oil spill, the largest marine oil spill in the history of the petroleum industry. Puntland has sold the land to Horn Petroleum. However both entities do not control or have minimal control of the Nugaal Block, with the later having no physical presence at all in the SSC region. There are also claims being made by large international oil companies including Royal Dutch Shell [11], who possess old oil exploration licenses granted by the former Somali government of Major General Mohamed Siad Barre. The SSC region is not only rich in Oil but also has large reserves of Tin, Iron Ore, Zircominium, Copper, Cobalt and Chromium. The Nugaal Block is largely controlled [12] by Khatumo State and cannot be sold to any foreign company without the consent of Khatumo State, that represents the aspirations of the local population. Investors in companies who claim to have bought the rights to explore Sool, Sanaag and Cayn (SSC) from either Somaliland or Puntland should be informed about the facts on the ground, and the conflict that these oil deals have caused. Any funds disbursed to these two entities for drilling rights on the Nugaal block can be considered as an squandered investment and a lack of due diligence on the part of these companies.

Somalia’s Oil and Gas Exploration

by Eng. Abdulkadir Abiikar Hussein Somalia: High hopes to generate revenues from hydrocarbons: At the moment, Somalia intends to move forward and give hope to its citizens. In order to do that, it must earn revenue to provide the basics: build sustainable peace, improve security for everyone in Somalia and provide public services: education, health, sanitation, access to clean water and build infrastructure. Resources that can generate revenue include the development of livestock, fishery, agricultural products, minerals, oil and gas in addition to collecting taxes from property, income, payroll or workforce, corporate, capital gains, wealth, goods and services (value added tax [VAT]) and many other types of taxes. Somalia has high hopes in gaining revenue from oil and gas, currently hidden in the underground of Somalia (onshore) and below the Indian Ocean-floor (the offshore). More than two decades ago (in the eighties), there was an “oil and gas exploration rush” to Somalia, driven by the country’s huge oil and gas potential. The rush was led by Conoco-Phillips, Shell (Pectin), Amoco, Eni, Total and Texaco, who left the country in “force majeure” waiting to come back at the right time, security wise. In a recent meeting, the Minister of Resources said, “Given that the security condition of the country is improving at a rapid speed and the presence of legitimate transparent government, companies of the past and the new ones are all welcome. Somalia will be open for business sometime in 2013 and we honour the agreements of the companies who filed “force majeure” and left the country due to the civil war. We are now working to review the Petroleum Law and make it more competitive and attractive to oil companies and investors”. Somalia is aware of the recent discoveries in Kenya, Uganda, Tanzania and Mozambique and it is determined to join the race for oil and gas production. In addition to the “giant” oil companies, currently there are small companies who are aggressive risk-takers who want to start and get hold of their share before the giants come to play. The “giant oil companies” seem to be reluctant and shuffling their feet at the moment. In getting ready for business, Somalia needs to carry out institution building: establish the Somali Petroleum Authority (SPA) in accordance to Article 8 of the Petroleum Law of Somalia. SPA is the competent authority that regulates petroleum operations in Somalia by ensuring that all activities from exploration, production and marketing adhere to the requirements of the Petroleum Law. Somali Petroleum Corporation (SPC) exists already but it may need re-structuring so that it meets the high expectations of the current government. Exploration activities in East Africa and Offshore Indian Ocean: In the surrounding countries of Kenya, and Uganda petroleum was discovered by small and medium companies. An example is the recent discoveries of Tullow Oil Plc. in Uganda and Kenya. Recently, Kenya has awarded licences to companies capable of working in deep-sea offshore blocks though that had triggered anger from the Somali side. Shell, Anadarko and Eni are not only the major Western oil and gas companies operating in East Africa offshore. For example, UK gas major BG Group is active in Kenya and Tanzania. BG Group entered Kenya in 2011, acquiring an interest in two offshore exploration blocks: L10A and L10B in the south of the Lamu Embayment. In Ethiopia, Africa Oil Corp has completed farm-out agreement with New Age (African Global Energy Ltd) whereby New Age acquired an additional 25% interest in Africa’s Oil Blocks 7 and 8 in the Somali State of Ethiopia. Africa Oil Corp and Tullow Oil Plc. work together in South Omo concession. The New Scramble for Deep-sea Offshore Indian Ocean: Elsewhere in offshore Indian Ocean margin, in Mozambique US-based Anadarko Petroleum and the Italian oil and gas-company, Eni have both recently announced significant gas discoveries (giant gas fields) in their respective blocks in the Rovuma Delta. In Rovuma, Tanzania another gas discovery was announced by Tanzania’s Petroleum Development Corporation. The recent natural gas discoveries off the coast of Mozambique in the Indian Ocean are important because of the size of the reserves as well as the country’s relative proximity to markets in Asia. During the writing of this article, Statoil announced its third gas discovery in offshore Tanzania. The bulk of the Indian Ocean margin lies within Somalia and whatever discovery happens there in the Indian Ocean alerts the ears of the Somalia’s Ministry of Resources. That is why Somalia aggressively wants to join the race for oil and gas discoveries of East and Horn of Africa. Now the name of the game in East Africa offshore is gas. Due to its geographic location, Somalia should look for markets and investors from the East. Countries such as Japan, India and China will be eager to consume Somalia’s oil and gas. Historical background and starting afresh: Somalia’s oil and gas potential was the driving force that has attracted oil exploration companies to hunt for oil and gas. About 60 years ago (in early 1950s) Agip (Italian) and Sinclair Oil Corporation (American) began to study the petroleum geology of Somalia and ever since companies flocked to Somalia whenever it was possible. Sinclair Oil Corporation drilled in the south more than 50 wells (some for stratigraphic and some for oil production purposes) worked from the mid-fifties to mid-sixties without a commercial oil discovery and Eni (previously known as Agip) worked from the fifties to the eighties and abandoned Block 31 (Puntland) in force majeure. Recently, during a visit to the well sites of Hobyo-1 and Gira-1 in Hobyo and Wisil respectively in Galmudug State of Somalia, it was not easy for me to understand why no exploration have not taken place in this area after October 1956. The top plug of the well has an inscription that says: “Obbia-1, October 1956.” From 1960 to 1969 oil companies were slowly coming in to explore for oil and gas. However, on the 21st October 1969 a military regime came to power and announced Scientific Socialism as its ideology, joining Somalia to the Soviet Block during the Cold War. Thus Somalia became un-accessible until 1977 when Somalia invaded Ethiopia to reclaim “ Western Somalia”. Somalia was defeated and it turned to the West for friendship. In the eighties companies aggressively came back to carry out exploration. But in the eighties , political stability was slowly eroding away and security was gradually breaking down as the military regime grew more authoritarian using a single party system, incompetent, infected with clanism, nepotism and corruption. Most of the major clans were not satisfied and consequently established political movements to up-root the regime and ultimately on 26th January 1991 it was overthrown. Later, the President of Somalia, Comrade Siyad Barre died in exile. Unfortunately Somalia entered the darkest ages of its life: lawlessness, anarchy and the absence of a central authority. Wasn’t Somalia Drilled For Oil And Not Found?! Exploration in Somali sedimentary basins: # Sedimentary basins Area in km² Wells drilled Drilling Density = Area/wells 1 The Lamu Embayment 35,000 3 11,666 2 Mandera – Luuq 40,000 4 10,000 3 The Somali coastal 50,000 13 3,846 4 Hiiraan Sub-basin 45,000 5 9,000 5 Galmudug basin 95,000 13 7,307 6 Nugaal Valley 60,000 8 7,500 7 Dharoor Valley 85,000 10 8,500 8 The Guban 35,000 7 5,000 8 basins 445,000 63 wells N.B The last two wells drilled in the Dharoor Valley of Puntland are included. Wasn’t Somalia drilled for oil and gas and why new ventures now? Petroleum exploration has extended over 60 years. The first exploratory well, the Sagaleh-1, was completed in 1956 and likewise Hobyo-1 was inscribed to have been finished in October 1956. As of the end of 2012, a total of 63 wells have been drilled. None of these wells has been commercially successful, although some have had hydrocarbon shows. The fundamental questions of finding oil in Somalia are all positive: 1. Has oil been generated in the area? Yes. • There are some large oil seeps in North Somalia (Somaliland) and in the Southwest where Ethiopia, Kenya and Somalia meet. • In Sagaleh-1 of Agip (Puntland), oil staining was found in a porous limestone-dolomitic series of the Jurassic. • Gira-1 of Sinclair (near Wisil in Galmudug) found a small oil show in the Jurassic • In Cotton-1 of Agip, a good gas show was found at 91m of Cretaceous limestone. • Auradu Paleocene limestones showed oil stains in the Sagaleh, Cotton and Gira wells. • In Merca-1 shelf-limestones of Oligocene age of 792m showed no hydrocarbon traces but the Eocene sandstones in this well not only had good oil staining but contained gas under good pressure • Afgoye-1 of Sinclair, north of Merca also had a good gas show. • In Calub and Halala (Wardheer, Ethiopia), Tenneco Oil Corp discovered gas and these fields are not far from Galinsoor in Galmudug. • Again Tenneco discovered a non-commercial oil in El Kuran near the Bakool border with Ethiopia. 2. Are there suitable reservoir rocks? Yes. - A reservoir rock has porosity and permeability. Porous sandstone and fractured limestone are good reservoir rocks. Porous dolomitic- limestone are plenty in the sedimentary sequence of Somalia. There also basal clastics that terminated in early Jurassic. 3. Are there seals or cap rocks? Yes. - Oil and gas accumulate only where seals occur above and around reservoir rocks so as to stop the upward migration of oil and gas and form traps. 4. Are there suitable structures? Yes. - Structural traps: These traps hold oil and gas because the earth has been bent or deformed. The trap may be simple. Also, there are stratigraphic traps The Reasons why previous exploration did not reach a commercial discovery? 1. Early geologic models were incorrect – bad well location occurred in many wells. 2. Early data were of insufficient resolution – bad well location was a major problem. Many of the previous tests were drilled on old or inadequate seismic data. Better geophysical techniques and modern explorations concepts will provide improved opportunities for any exploration undertaken in the future. 3. Technological development in seismic surveying and in other areas of exploration has occurred and now exploration is more promising. 4. Favourable terms and a new petroleum law with a production sharing agreement, were passed by the parliament in 2006 and Somalia is ready for exploration, development, production and exporting. 5. Stability is slowly coming back and the country is democratically transforming. 6. Location and geographical: Not far away from the emerging markets of China and India and the production is easily exportable. Why is Somalia under-explored and neglected for so long? Somalia has been sparsely explored. The drilling density shows you that wells are spaced far away from each other. However, Somalia contains several exploration plays with world-class potential that remain to be tested. Just prior to the collapse of the “Somali State” in December of 1990, several concessions were held by major international petroleum companies and at least three key wells were scheduled to be drilled. Then the civil war broke out and companies have to flee. 1. Political reason and instability: Petroleum exploration began after the Second World War and the first exploratory well, the Sagaleh-1 was completed in 1956. From the early seventies to mid- eighties Somalia was roughly in the Soviet Block and slight exploration occurred. Things changed after 1985 when giant oil companies rushed to Somalia to take up concessions for exploration. However, in January 1991 the Somali government collapsed and the country went into a civil war. Then the oil companies declared force majeure to return back when the political condition stabilises. Then in 2006, the then President of Somalia, Abdullahi Yussuf, invited the companies with the lease to come back to resume their work. But none came back and the force majeure condition was revoked. 2. The boom elsewhere: There was a boom going in the Middle East and then West Africa and Somalia was considered as a frontier province that requires a lot of resources. Oil companies were very busy in West Africa, the Middle East and South America, mainly Brazil. 3. Low well-density or drilling density: To this day, there are 63 wells drilled in the various basins of Somalia and none of these wells has been commercially successful although some have had shown hydrocarbon shows. One of the reasons is that wells are spaced far from each other at distances of 50 – 100 km apart and in some cases spacing was 250 – 400 km. Oil and Gas Potential: Most of Somalia has a Jurassic to Miocene sedimentary section that ranges from two to five km thick and is divided into seven unconformity-or transgression-bounded sequences. Thicknesses of these sequences vary significantly within eight depositional basins. There are at least eight petroleum basins in Somalia that hold potential prospects ready for exploration and development. Some of these sedimentary basins have sediment thicknesses more than five kilometres and contain good source rocks, reservoir rocks, seals and traps necessary for oil and gas to deposit. Inland, the Jurassic to Tertiary section consists primarily of inter-bedded platform limestones and shales, locally with evaporites. This section is transitional eastward to deeper water shelf and basinal deposits along the coastal margin. Mesozoic rifts are present in northern Somalia. The early Cretaceous was a time of widespread emergence. Deltas related to major drainages developed in the Late Cretaceous and Tertiary; subsidence led to accumulation of a thick Tertiary section of deltaic and marginal marine deposits in southeastern Somalia. The main structural elements resulted from rifting of Gondwanaland during Carboniferous to Jurassic, separation of Madagascar-India in early Late Jurassic, and opening of the Gulf of Aden in mid-Tertiary. In central and southern Somalia, warping and down-to-the-coast faulting is Late Cretaceous to mid-Tertiary in age. In the north, most deformation is related to Gulf of Aden rifting in which Africa separated from the Arabian Peninsula. Mature, oil-prone source beds combined with potential reservoir rocks and structures occur in a variety of geological settings. Viable exploration plays include rift basins, regional arches, carbonate platform margins, deltaic complexes, and faulted basin margins. Conclusion: Time has come for investors and international oil companies to aggressively consider exploring for oil and gas in Somalia. The country has a lot to offer: eight sedimentary basins with columns of 5 to 6 km in several areas and a range in age from Jurassic or Triassic to Tertiary. Tectonics for the past 200 my have been extensional, leading to these thick and varied columns. Facies changes, faults, arches, and folds associated with extensional tectonics provide many possible combinations of trap, reservoir, seal and source rock. Many of the previous tests were drilled on old or inadequate seismic data. Better geophysical techniques and modern exploration concepts will provide improved opportunities to present ventures. The country is also located geographically in a strategic place in Africa having a long coastal line and it is easy to export to India, Japan and China and other emerging markets around the world. We remain optimistic about Somalia’s hydrocarbon potential whether it is onshore or offshore. But companies need to be socially responsible: transparent, free of corruption and bribery. We want companies to operate safely without causing environmental degradation like in Niger Delta or in the Gulf of Mexico. Likewise companies should contribute to the communities in which they operate by creating jobs, using local supplies and supporting community development. The aim is to make an ever-lasing difference to the quality of the communities’lives. References: 1. Barnes, S.U. ; 1976, Geology and oil prospects of Somalia, East Africa; AAPG; Bulletin; v.60; pp. 389 – 413. 2. Brady Michael J and Harms, J.C; Exploration history and hydrocarbon potential of Somalia: A technical talk; Kansas Geological Society – Technical Talk 2002. 3. Bosollini, Alfonso; 1989; The continental margins of Somalia – Their structural evolution and sequence stratigraphy; Memorie Scienze Geologiche; v. 41; pp: 373 – 458. 4. Cella, F.; Dorre, A.S and Rapolla A., 1995; Gravity study of the crustal structures of Somalia along the International Lithosphere Program Geo-transects; Journal of African Earth Sceinces; Vol. 30; pp. 263 – 274. 5. Harms, J.C and Naleye, Ali M; Petroleum exploration in Somalia; Geology and mineral resources of Somalia and the surrounding regions; First Agron; Oltremare, Firenze; Relaz e Monogr. 113, pp. 417 – 428, 1993. 6. SOEC (Somaliland Oil Exploration Company), 1954; A geological reconnaissance of the sedimentary deposits of the Protectorate of the British Somaliland: London, Crown Agents for the Colonies

CONFLICT IN NORTH SOMALIA " CONGO STYLE WAR FOR RESOURCES

By Mahdi Ali 03/08/2013 Global Research, April 09, 2013Region: sub-Saharan Africa Theme: Oil and Energy, United Nations On Monday the 5th of November 2012, Somaliland forces mounted an offensive [1] against Khatumo state forces based in Hudun town. Hudun[2] town is situated in the western parts of Sool province, in what was a relatively peaceful area of Northern Somalia. Pro Somaliland media outlets reported [3] that “the skirmishes” were the result of elements who were trying to intimidate voters in the “local elections [4]” that was held in Somaliland. However the offensive launched by Somaliland on the 5th of November proved to be just the start of what would be a prolonged offensive campaign waged by Somaliland on Khatumo State forces based in Hudun town. Repeated [5] clashes followed on the 28th of November, the 1st, 31st of December, the 23th, 24th of January, the 1st, 13th of February 2013, with the most recent one being on the 8th of March. The offensive on the 8th of March followed the press release [6] by Jacka resources on 6th March of large structural petroleum prospects in North Somalia. In three months’ time Somaliland attacked Hudun a total of nine times. Sources close to Somaliland have confirmed Somaliland is planning a new major offensive. In spite of Somaliland’s continued offensive, Khatumo remains in firm control of Hudun town. Illegitimate Oil Deals Prior to the start of its offensive on the 5th of November, Somaliland signed a deal [7] on the 30th of October 2012 with Genel Energy Plc to drill two wells for Oil in Northwestern Somalia, on two blocks assigned by Somaliland. Soon after the deal Somaliland militia headed towards Hudun and attacked the town. Hudun town is situated on the Nugaal block [8], one of the blocks to be drilled for oil. The Nugaal block is a stretch of land situated in the regions of Sool, Sanaag and Cayn (Buhoodle town) in short the SSC [9] regions, and to a lesser extend Nugaal region. The Nugaal block has been sold [10] to oil companies by both Somaliland and Puntland. Somaliland has sold the land to Genel Energy led by Tony Hayward, the former BP CEO, who headed BP during the Gulf of Mexico oil spill, the largest marine oil spill in the history of the petroleum industry. Puntland has sold the land to Horn Petroleum. However both entities do not control or have minimal control of the Nugaal Block, with the later having no physical presence at all in the SSC region. There are also claims being made by large international oil companies including Royal Dutch Shell [11], who possess old oil exploration licenses granted by the former Somali government of Major General Mohamed Siad Barre. The SSC region is not only rich in Oil but also has large reserves of Tin, Iron Ore, Zircominium, Copper, Cobalt and Chromium. The Nugaal Block is largely controlled [12] by Khatumo State and cannot be sold to any foreign company without the consent of Khatumo State, that represents the aspirations of the local population. Investors in companies who claim to have bought the rights to explore Sool, Sanaag and Cayn (SSC) from either Somaliland or Puntland should be informed about the facts on the ground, and the conflict that these oil deals have caused. Any funds disbursed to these two entities for drilling rights on the Nugaal block can be considered as an squandered investment and a lack of due diligence on the part of these companies. The Nugaal block is the most sought out by the oil companies, with prospective resources of 4.1 Billion barrels of oil. Extraction of Oil and Minerals can only be done with the support of the local population represented by Khatumo State of Somalia. The War Waged against Khatumo State and the SSC population Puntland and Somaliland have been waging war against each-other in the SSC regions for a decade [13] now, and in the last three years against [14] Khatumo State of Somalia and its predecessor SSC. Khatumo State of Somalia was created on the 12th of January 2012, in the historic town of Taleh [15]. The officials of Khatumostate of Somalia [16] have been elected and endorsed by the civil society at large including the 13 Garaads of the SSC regions (prominent elders of SSC), women associations and business groups. Since the creation of Khatumo State of Somalia and its predecessor SSC, Somaliland and Puntland have moved closer to each-other and have formed an alliance to fully eliminate any party that may challenge their claims to these regions. This alliance culminated into a coordinated [17] attack on Khatumo State forces on the 28th of June 2012 by Puntland and Somaliland on Tukaraq a small village in Sool region, situated 15 Miles from Garowe, the capital of Puntland. The presumption in the SSC regions is that Puntland and Somaliland have divided the area between themselves. Since the capture of Lasanod by Somaliland on the 5th of October 2007, there has been a relentless war against the local population. The war waged by Somaliland includes the targeting of food convoys, sexual violence [18], arbitrary excecutions of nomads [19] and their animals with mobile units of technicals mounted with machine guns. The wars waged by Somaliland in Buhoodle district alone have resulted in the displacement of 150,000 residents as reported [20] by the UN monitoring group on Somalia and Eritrea. These fleeing civilians end up in villages and cities where safety is provided by Khatumo State of Somalia or end up in refugee camps in Kenya. The displacement of civilians from their homes and livelihoods by Somaliland is the main cause of loss of life in the Northern region of Somalia. The war in the SSC region will continue and accelerate in the near future while Somaliland is trying to secure these regions for seismic surveys on the ground and eventually drilling. Despite Somaliland’s continues offensive it has been losing ground to Khatumo State that has the support of the local population. The role of the International community and the UN The UN has undertaken various governance and law programmes in Somaliland, including the training [21] of Special police units, maritime police and the donating of vehicles [22]. The aim of these governance programs is to increase the efficiency and the effectiveness of the security forces thereby “increasing security” in “Somaliland”. These programs do not take into account the war waged by Somaliland on Khatumo State and the SSC population. Increasing the effectiveness of the security means increasing their ability to wage war. At the start of 2012, Somaliland started to use its newly acquired equipment and training received to attack Buhoodle district. The UN is aware of the war that Somaliland is waging in the SSC region but is still committed to funding “governance and law” programs in Somaliland and has even increased funding for these kind of projects for 2013. Through the UN, the United Kingdom and to a lesser extend the European Union have been the biggest donors to Somaliland. The budget of Somaliland depends on the funds made available by the International community. The United Kingdom has been informed [23] of the war waged by Somaliland by the SSC diaspora living in the United Kingdom and is well aware of Somaliland’s war against Khatumo State of Somalia and its people. However it has promised increased funding [24] to Somaliland. One has to question why the United Kingdom is funding Somaliland while it is waging war in the SSC regions of Somalia. Although there has been a decade of war in North Somalia (Somaliland), there is a media blackout of the conflict. Many media outlets even portray Somaliland as an oases of Peace in Northern Somalia, with the BBC leading the way. Khatumo State and the SSC population Khatumo State of Somalia and the population living in the SSC regions are aware that the war is not only about Somaliland wanting to secede, but that it is increasingly a war for resources. Somaliland has been able to promote itself as being in full control of the SSC region to oil companies, and is actively seeking to “sell” land to these companies. The international community is keen to explore these resources. The war in the SSC regions is developing into a war for the resources of North Somalia. The human and material cost suffered by the SSC population is of no relevance to Somaliland and the oil companies. Khaatumo State and the SSC population are aware that the resources on their land can either be a blessing or a curse. Today Khaatumo State controls the majority of the SSC regions and is actively working towards the development of the region. It is the right of the people of Khaatumo State to choose their own destiny, and to develop their own land. Notes 1. ”Somaliland troops clash with rebels in Hudun”. http://somaliamediamonitoring.org. 6 November 2012. Retrieved 30 March, from http://somaliamediamonitoring.org/november-6-2012-daily-monitoring-report/ 2. Location Hudun, see: http://www.gomapper.com/travel/where-is/hudun-nugaal-located.html 3. ”Somaliland: Skirmishes in Hudun as Polling gets underway”. http://somalilandpress.com. 5 November 2012. Retrieved 30 March, from http://somalilandpress.com/somaliland-skirmishes-in-hudun-as-polling-gets-underway-38009 4. The local election held in Somaliland in 2012, was largely of tribal nature were each sub clan of the ruling Isaaq clan of Somaliland had its own party. The 4 (Dhulbahante, Gadabuursi, Issa, and Warsangali) other clans of Somaliland did not participate and were not represented during the local election. See Steve Kibble. “Preparing for local elections in Somaliland”.http://www.progressio.org.uk. Retrieved 30 March, from http://www.progressio.org.uk/sites/progressio.org.uk/files/Preparing-for-local-elections-Sld-2012.pd 5. Repeated clashes, see: “Fighting erupts in Hudun district, Sool region”. http://www.bar-kulan.com. 28 November 2012. Retrieved 30 March, from http://www.bar-kulan.com/2012/11/28/fighting-erupts-in-hudun-district-sool-region/, “Somaliland (Somalia) 1 Dec 2012″. http://www.crisisgroup.org. 1 December 2012. Retrieved 30 March, http://www.crisisgroup.org/en/publication-type/crisiswatch/crisiswatch-database.aspx?CountryIDs={F8A09CE3-0615-4CBA-9EC7-7DCC2A088A7E}, “War in Xudun” (Somali language). http://www.lasanod.com. 31 December 2012. Retrieved 30 March, from www.lasanod.com/details.php?wararPage=12&num=8520, “War in Xudun” (Somali language).http://www.lasanod.com. 22 January 2013. Retrieved 30 March, from http://www.lasanod.com/details.php?wararPage=6&num=8637, “Somaliland:Khatumo Militias Dislodged from Hudun Bases”. http://somalilandsun.com. 23 January 2013. Retrieved 30 March, from http://samotalis.blogspot.nl/2013/01/somalilandkhatumo-militias-dislodged.html, “Somaliland Army Crush Khatumo Aligned Militiamen”. somaliamediamonitoring.org. 24 January 2013. Retrieved 30 March, fromhttp://somaliamediamonitoring.org/january-25-2013-daily-monitoring-report/, “Somaliland (Somalia) 1 Feb 2013″.http://www.crisisgroup.org. 1 February 2012. Retrieved 30 March, http://www.crisisgroup.org/en/publication-type/crisiswatch/crisiswatch-database.aspx?CountryIDs={F8A09CE3-0615-4CBA-9EC7-7DCC2A088A7E}, “North Somalia: Somaliland Militia & Khatumo State Forces Clash in Hudun Town, Sool Region, Somalia February 13. 2013″. http://awdalstatenews.com. 13 February 2013. Retrieved 30 March, from http://awdalstatenews.com/north-somalia-somaliland-militia-khatumo-state-forces-clash-in-hudun-town-sool-region-somalia-february-13-2013/, “Somaliland: clashes between army and khaatumo separatist group militiamen in Hudun town”. http://beforeitsnews.com. 8 March 2013. Retrieved 30 March, from http://beforeitsnews.com/war-and-conflict/2013/03/somaliland-clashes-between-army-and-khaatumo-separatist-group-militiamen-in-hudun-town-2445388.html 6. Bevis,Yeo. “Jacka Resources finds promising structures in Somaliland petroleum block”.http://www.proactiveinvestors.com.au. 6 March 2013. Retrieved 30 March, from 7. ”Turkish firm eyes Somaliland”. http://www.hurriyetdailynews.com. 30 October 2012. Retrieved 30 March, from http://www.hurriyetdailynews.com/turkish-firm-eyes-somaliland.aspx?pageID=238&nid=33524 8. ”Nogal and Dharoor valley blocks”. http://www.africaoilcorp.com. Retrieved 30 March, fromhttp://www.africaoilcorp.com/s/Nogal.asp 9. SSC region, see: http://en.wikipedia.org/wiki/User:SSC_Somalia/Sandbox1 10. Kelly Gilblom. “Row between Somali regions slows oil exploration”. http://uk.reuters.com. 11 May 2012. Retrieved 30 March, from http://uk.reuters.com/article/2012/05/11/somalia-oil-idUKL5E8GB3LG20120511 11. Jon Kamp. http://www.foxbusiness.com. 21 March 2013. Retrieved 30 March, fromhttp://www.foxbusiness.com/news/2013/03/21/royal-dutch-shell-ceo-highlights-somalia-holdings/ 12. Political map of Somalia, see: http://upload.wikimedia.org/wikipedia/commons/9/9f/Somalia_map_states_regions_districts.png 13. For an analysis, see: Markus V. Hoehne. “Puntland and Somaliland Clashing in Northern Somalia: Who Cuts the Gordian Knot?” http://hornofafrica.ssrc.org. 7 November 2007. Retrieved 30 March, from http://hornofafrica.ssrc.org/Hoehne/ 14. Mark Anderson. “Somaliland clashes with secessionists” http://www.reuters.com. 10 February 2012. Retrieved 30 March, from http://www.reuters.com/article/2012/02/10/somalia-conflict-idUSL2E8D9BN420120210 15. Historic town of Taleh, see: http://en.wikipedia.org/wiki/Taleh 16. “What is Khatumo State”. http://www.somaliareport.com. 26 April 2012. Retrieved 30 March 2013, from http://www.somaliareport.com/index.php/post/3271/What_is_Khatumo_State 17. Abdinur Elmi Qaaje. Khatumo State of Somalia. “Joint war Waged by Somaliland and Puntland Administrations on Khatumo State of Somalia”. 28 June 2012. Retrieved 30 March, from http://lasanod.com/details.php?wararPage=3&num=7679 18 Osman Hassan. “Somaliland occupying militia gang-rape 13-year old girl in Sool”. http://khatumo.net. 30 December 2012. Retrieved 04 April 2013 from http://khatumo.net/?p=1363. Dalmar Kaahin, a pro Somaliland reports of 13 old being raped. “Somaliland: the Violent Militant, Khatumo’s “Press Release” Back Fires”. http://somalilandpress.com. Retrieved 30 March, from http://somalilandpress.com/somaliland-the-violent-militant-khatumo%E2%80%99s-%E2%80%9Cpress-release%E2%80%9D-back-fires-39179 19 “Warlord Siilaanyo & His Somaliland Killing KHaatumo Civilians”. http://www.dhanbaal.com. 26 January 2012. Retrieved 30 March, from http://www.dhanbaal.com/main/index.php?module=News&func=display&sid=1571 20 Matt Bryden, Coordinator Monitoring Group on Somalia and Eritrea. “Letter dated 20 June 2011 from the members of the Monitoring Group on Somalia and Eritrea addressed to the Chairman of the Security Council Committee pursuant to resolutions 751 (1992) and 1907 (2009) concerning Somalia and Eritrea”. Page 130. 20 June 2011. Retrieved 30 March, from http://www.un.org/ga/search/view_doc.asp?symbol=S/2011/433 21 Yusuf M Hasan. “Somaliland: UK Trained Resistant Reaction Police Unit Graduate”. http://www.somalilandsun.com. 15 March 2012. Retrieved 30 March, from http://index.php/politics/402- somaliland-uk-trained-resistant-reaction-police-unit-graduate, Colonel S. R. Roberts. “Conference on capacity- building to Counter Piracy off the coast of Somalia”. 15 May 2012. Retrieved 30 March, from http://www.imo.org/MediaCentre/HotTopics/piracy/Documents/UNPOS.pdf 22 “UNDP donates vehicles to Somaliland police, judiciary”. Retrieved 30 March, from http://www.mareeg.com/fidsan.php?sid=6272&tirsan=3 23 Alex Milan Tracy. “Somali’s demonstrate against Somaliland’s war on SSC people”. http://www.demotix.com. 5 March 2011. Retrieved 30 March, from http://www.demotix.com/news/612059/somalis-demonstrate-against- somalilands-war-ssc-people#media-612064 24 “UK increases aid to Somalia”. http://somalilandpress.com. Retrieved 30 March, from http://somalilandpress.com/uk-increases-aid-to-somalia-20537

U.S. pushes ‘secret war’ in Somalia while oil companies fish for the gold

Wednesday,31,2013 In a good week, reports from the Horn of Africa couldn’t be more upbeat. “Somalia is a good news story for the region—for the region, for the international community, but most especially, for the people of Somalia itself,” declared Johnnie Carson, U.S. assistant secretary of state for African affairs last October. This year, however, the news picture went from upbeat to grim. Foreign Policy magazine reported that the U.S. has upped its aid to Somali intelligence agencies allied against al-Shabaab, the country’s Islamist insurgency. Training camps were preparing Ugandan peacekeepers to fight Somalia militants, and Predator drones, fighter jets and nearly 2,000 U.S. troops and military civilians were being parked at a base in neighboring Djibouti. Despite billions in U.S. aid being spent on Somalia to, as President Obama observed, “strengthen the security of the United States and promote world peace,” a new U.N. report confirms that “the military strength of al-Shabaab, with an approximately 5,000-strong force, remains arguably intact in terms of operational readiness, chain of command, discipline and communication capabilities. Meanwhile, as the U.S. is pulled deeper into this costly and seemingly unwinnable war, Western oil companies from Canada and Norway are trolling Somalia’s semi-autonomous regions—Puntland and Somaliland—for potentially enriching oil exploration contracts. In some cases, Somaliland and Puntland have awarded licenses for exploration zones that overlap. The UN Monitoring Group warns: “Potentially, this means that exploration operations in these blocks, conducted by both DNO [Norwayand Africa Oil [Canada] under the protection of regional security forces, its allied militia or private forces, could generate new conflict between Somaliland and Puntland.” “It is alarming that regional security forces and armed groups may clash to protect and further Western-based oil companies interests,” the U.N. report said.

IS EAST AFRICA THE NEXT FRONTIER FOR OIL PROSPECTS

Mar 11, 2010

Nairobi, (Qaran news)- According to local lore, Portuguese travelers as far back as the late 19th century suspected that oil might lie beneath parts of East Africa after noticing a thick, greasy sediment wash up on the shores of Mozambique. More interested in finding cheap labor, though, the explorers had little use for oil.

A century later, it turns out that the Portuguese were right. Seismic tests over the past 50 years have shown that countries up the coast of East Africa have natural gas in abundance. Early data compiled by industry consultants also suggest the presence of massive offshore oil deposits. Those finds have spurred oil explorers to start dropping more wells in East Africa, a region they say is an oil and gas bonanza just waiting to be tapped, one of the last great frontiers in the hunt for hydrocarbons. "I and a lot of other people in oil companies working in East Africa have long been convinced that it's the last real high-potential area in the world that hasn't been fully explored," says Richard Schmitt, chief executive of Black Marlin Energy, a Dubai-based East Africa oil prospector. "It seems, for a variety of geopolitical reasons, that more than anything else, it's been neglected over the last several decades. Most of those barriers are currently being lowered or [have] disappeared altogether." (See pictures of oil in Africa.)

Few have wanted to pay the cost of searching for oil or gas in the region, or risk drilling wells in volatile countries such as Uganda, Mozambique or Somalia. But better technology, lower risk in some of the countries and higher oil prices in recent years have changed the equation. Wildcatters and majors such as Italy's Eni, Petronas of Malaysia and China National Offshore Oil Corporation (CNOOC) have all moved on East Africa in the past few years.

They're hoping to mimic London-based Tullow Oil, which discovered some 2 billion bbl. of oil in landlocked Uganda over the past four years. Last month, Texas-based oil company Anadarko Petroleum Corp. announced that it had tapped a giant reservoir of natural gas off the coast of Mozambique. "Anadarko's find went off like a bomb here in Houston," says Robert Bertagne, a Texas-based oil wildcatter. "It was, 'Wow, we are finding large quantities of gas, and that means we have hydrocarbons in the area.' Once you have a discovery, more people are going to go in there." (See pictures of oil fires.)

Much of East Africa's hopes are focused on a fault line running from Somalia to Madagascar known as the Davie Fracture Zone. It's there that Bertagne's analysis — using Cold War–era sea-floor mapping originally intended for use by Soviet submarines — has prompted speculation about oil deposits rivaling those of the North Sea or Middle East. There's still a lot that's unknown: North Africa has seen 20,000 wells sunk over the past few decades, while drillers have sunk 14,000 wells in and off West Africa. In East Africa, the total is about 500 wells.

That's changing. Kenya issued six exploration licenses between 2000 and 2002 and two more to CNOOC in the next four years. In 2008 and 2009, it issued 18 new licenses. "Despite a long history of unsuccessful exploration, the oil companies are investing in Kenya," says Mwendia Nyaga, managing director of the National Oil Corporation of Kenya. "The question is not if any hydrocarbon deposits exist, but where they are." (See "Borders of Sudan's Oil-Rich Region Shrink.")

It doesn't help that the region is so geologically complex — with lots of fractures and offshore oil deposits likely deep underground. Or that many of the countries likely to have deposits have seen wars and unrest. Somalia remains a no-go zone, and Ethiopia's eastern Ogaden region is beset by a violent rebel insurgency. And while Mozambique's civil war may have ended in 1992, it has taken years for the country to fully recover. (See pictures of Somalia's pirates.)

Explorers salivate in particular at the prospect of peace in Somalia. Oil reserves in the blocks licensed to two small oil companies, Africa Oil and Range Resources, could contain as much as 10 billion bbl. Nobody is talking about producing oil in Somalia anytime soon, but analysts say oil companies are less likely to be intimidated by political risk than they were in the past. They point to oil production in south Sudan, where a 20-year civil war that ended in 2005 threatens to reignite. "Definitely, there is a sense that there are discoveries to be had," says Aly-Khan Satchu, a financial adviser who runs Rich Management in Nairobi. "The reality and the perception of risk are narrowing."

By Nick Wadhams

SOMALILAND EXPANDS IT'S PETROLEUM LICENSING ROUND ACREAGE

(M e d e s h i)
October 05, 2009

HARGEISA, Somaliland--
(BUSINESS WIRE)--The Somaliland Ministry of Water and Mineral Resources (Ministry) announced today that it will add 6,221 square kilometers of onshore acreage in block SL3 to their petroleum licensing round, closing in December 2009.
The bid round now includes nine concession blocks comprised of more than 95,845 square kilometers of onshore and offshore areas. The deadline for final submission of bids is December 15, 2009 and concessions will be awarded on March 15, 2010.
Seismic, aeromagnetic data and interpretive datasets over the region are available from TGS-NOPEC Geophysical Company (TGS). The information on bid round application is also available through TGS.

Contacts
Minister of Water and Mineral Resources
Republic of Somaliland
Mr. Qasim Sh. Yusuf Ibrahim,
+ 252 2528766
MWNR.info@gmail.com
http://www.somalilandgov.com/

Posted by Medeshi on Monday, October 05, 2009

ETHIOPIA SAYS BRITISH AND SAUDI FIRMS FIND LARGE GOLD DEPOSITS

(Medeshi News)
ADDIS ABABA (Reuters)
Two mining companies have discovered gold deposits in Ethiopia that could yield up to 41 tonnes, a top government mining official said on Friday.
Gebre Egziabher Mekonen, head of the Mineral Operation Department in the Ministry of Mines and Energy, told Reuters the Golden Prospecting Mining Co., a British firm, had found a deposit of about 23 tonnes in western Ethiopia.
"Discoveries by the British firm indicated that there is a viable prospect for gold mine development in the area. But it takes up to $200 million further investment to exploit the resources roughly within the next five to 10 years," he said.
Sakaro, a mining company operating under Midroc Gold Co., owned by Saudi business tycoon Sheik Mohammed Hussein Al Amoudi, has also discovered a new deposit estimated at 18 tonnes in the Lege-Dembi gold belt, Gebre Egziabher said.
The Golden Prospecting Mining discovery is at Tulu-Kapi, about 450 km (279.6 miles) west of the capital Addis Ababa and near the border with Sudan.
The company is also exploring another site near Tulu-Kapi, which has indications of a separate reserve of 30 tonnes, Gebre Egziabher said.
Once the two proven gold deposits were developed into mines, Ethiopia's annual income from the sector could reach up to $1.7 billion a year at current prices, from the present $105 million a year, he said.
Ethiopia has earned $450.5 million from nearly 48 tonnes of gold exports in the last 10 years, according to statistics by the National Bank of Ethiopia.
The country says it has indentified possible reserves of up to 500 tonnes in different parts of the country.
Gebre Egziabher said 44 international and local companies were engaged in mineral exploration throughout the country.
The government issued mining regulations in 1993 giving foreign investors incentives such as duty-free imports of equipment and repatriation of profits.
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Posted by Medeshi on Friday, October 23, 2009

The African Development Bank at DAVOS Africa: Financing for Development Initiative

Somalilandpage.blogspot.com
4-6-2008

Leveraging Resources for Private Sector Financing

Cape Town, 6 June 2008 – The Private Sector Department of the African Development Bank (AfDB) Group organized an exclusive two-day Financing for Development round table from 3-4 June 2008 at the World Economic Forum on Africa held in Cape Town, South Africa.

The meeting brought together world-class private sector financial institutions that had a fruitful interaction with senior management of the AfDB Group and the World Economic Forum on Financing for Development Initiative.

The meeting discussed ways and means of leveraging Development Finance Institutions (DFIs) capital to catalyze greater private sector investment. The gathering also enabled participants to discuss the African Financing Partnership, the optimal mix of concessional and non concessional lending and private sector views on the effective use of development finance institutions’ resources to catalyze private sector investment in Africa.

The Financing for Development initiative is aimed at developing a public-private financing partnership between multilateral development banks, bilateral development finance institutions, global investment entities, and commercial financial institutions.

The first day of the meeting highlighted the AfDB’s role in catalyzing further Public-Private Partnerships. Interactive discussions focused on engaging the private sector in increasing non-sovereign financing and funding at sub-sovereign levels, establishing investment climate capacity building as a central priority, “learning by doing transaction” programmes, using transactions as critical vehicles, strengthening investment project pipelines through project development support and providing advisory services to governments on Public-Private Partnerships (PPPs) structuring.

Issues related to financing infrastructure projects in Africa were examined and two AfDB Group projects were showcased, namely, the Mmamabula Energy Project in Botswana, presented by CIC Energy Ltd, and the Lekki Toll Road in Nigeria presented by Lekki Concession Company. At the end of his presentation, Mr. Opuiyo Oforiokuman, CEO/Managing Director, Lekki Concession Company Limited, said "Closing the huge gap that exists in the provision of essential basic infrastructure in Africa requires access to long term finance on affordable terms. Raising such finance, however, has proven quite a challenge over the years. It is important, nevertheless, that we don't give up hope, lest we allow poverty to be institutionalized here. The World Economic Forum brings together many of the people, both from Africa and beyond, who can truly make the difference. We therefore look forward to a positive outcome from this key event."

Participants also had the opportunity on the second day of the meeting to focus on the Bank’s initiative on the ‘African Financing Partnership’, a facility developed in partnership with institutions such as the entrepreneurial development bank of the Netherlands (FMO), Proparco, a subsidiary of the French Development Agency (AFD) and the German Private Sector funding agency (DEG). Other DFIs have shown interest in participating in this Partnership, whose main purpose is to harmonize procedures and help member institutions to increase their operations without increasing the processing costs, while maintaining the highest quality standards. The most important issue discussed during the breakfast session was how to seek ways in which the public sector division of labor could better complement and leverage private sector financing.”

Source: AfDB, June 06, 2008

Somalia/ Somaliland Petroleum Potentials Fact!.

Somalilandpage.blogspot.com

The Somali Republic gained independence on July 1, 1960. Somalia was formed by the union of British Somaliland and Italian Somaliland. Rebel forces ousted the Barre’s regime in 1991, but turmoil, factional fighting, and anarchy ensued. The Somali National Movement (SNM) gained control of the north, while in the capital of Mogadishu and most of southern Somalia the United Somali Congress achieved control.
In 1992, responding to the political chaos and humanitarian disaster in Somalia, the United States and other nations launched peacekeeping operations to create an environment in which assistance could be delivered to the Somali people. By March 1993, the potential for mass starvation in Somalia had been overcome, but the security situation remained fragile. On October 3, 1993 U.S. troops received significant causalities (19 dead over 80 others wounded) in a battle with Somali gunmen. When the United States (in 1994) and the UN withdrew (in 1995) their forces from Somalia, after suffering significant casualties, order still had not been restored.
A Transitional National Government (TNG) was created in October 2000 with the three-year mandate of creating a permanent national Somali government. Although they declared their independence, the TNG does not recognize Somaliland as independent republic but has been unable to reunite the country. Peace talks began in late-2002 and are ongoing. Somaliland has refused to participate in these talks saying that while it would welcome peace in former Italian Somalia, Somaliland is an independent country awaiting international recognition.
Somalia's economy, one of the world's least developed, has been further hampered by the country's ongoing internal strife. Reliable economic data is scarce, and the TNG cannot manage the national economy while it struggles to gain control over the country. Livestock production (cattle, goats & sheep) is the mainstay and largest foreign exchange earner of the Somali economy. An outbreak of Rift Valley Fever (RVF) in southern Saudi Arabia and Yemen (the first reported outside Africa) in 2000 led six Gulf States - Saudi Arabia, Bahrain, Oman, Qatar, Yemen and the United Arab Emirates - to ban livestock imports from the Horn of Africa. Middle Eastern countries are considering lifting the ban on livestock in early 2004. Another significant portion of the Somali economy, foreign remittances, have fallen significantly following the US government's closure of the Al-Barakat transfer company, which has been accused of transferring funds on behalf of Osama bin Laden and the Al-Qaida terrorist network. Remittances from abroad are estimated to be $200-$500 million annually.
While the TNG is in the process of reestablishing Somalia's Central Bank. Somalia is unable to receive IMF, and other multilateral aid due to the lack of institutions/financial infrastructure in place.


OIL AND NATURAL GAS
Somalia has no proven oil reserves, and only 200 billion cubic feet of proven natural gas reserves. Somalia currently has no hydrocarbon production. Oil seeps were first identified by Italian and British geologists during the colonial era. Exploration activities were
focused in northern Somalia, and several foreign firms, including Agip, Amoco, Chevron, Conoco and Phillips, held concessions in the area. The firms all declared force majeure following the collapse of the central government.
Exploration activity remains hindered by the internal security situation, and the multiple sovereignty issues. In February 2001 Total signed an exploration agreement with the TNG. The twelve-month agreement grants Total the rights to explore in the Indian Ocean off southern Somalia. Hassan Farah, TNG's Minister for Water and Mineral Resources, stated that the government would provide security during the exploration activities. Several factional leaders have denounced the agreement, and stated that the TNG did not have the authority to sanction the agreement, nor the power to guarantee the safety and security of the exploration operations.
In May 2001, Somaliland signed an agreement with U.K.-registered Rovagold and two Chinese firms, CPEC and CPC, for the right to explore for oil. Dubai-based Zarara Energy also signed an exploration agreement with Somaliland. The Somaliland government has said it will honor, until they expire, the existing contracts foreign companies signed with the Barre regime that are in their territory. None of the firms have resumed operations in Somaliland.
Somalia's petroleum consumption was an estimated 4,000 bbl/d in 2001. The organization officially responsible for all petroleum product distribution and retailing is the cooperative Iskash. The state-owned Iraqsoma Refinery Corporation operated a 10,000-bbl/d refinery outside of Mogadishu, but it has been inoperative since 1991. Total is involved in the downstream sector in Somaliland. It rehabilitated and manages the operations of the oil terminal in Berbera, Somaliland's primary port. Total also supplies fuel to airports located in Berbera and Somaliland's capital of Hargeisa.

Somaliland Government Signs Agreement with UK Oil Company

Somalilandpage.blogspot.com

Jun 01, 2008 at 02:27 AM

Hargeisa.

The Somaliland Ministry of Water and Natural Resources has confirmed that the government of Somaliland has signed an oil exploration agreement with Asante Oil (UK) Limited.

According to the Director-General of the Ministry of Water and Natural Resources, Eng. Ahmed Ibrahim Suldan, Asante Oil (UK) Limited recently purchased the report from the seismic survey conducted in Somaliland by TGS of Norway, and has subsequently agreed to begin drilling towards the end of 2008.

Speaking to reports from the Republican at his office in Hargeisa, Eng. Ahmed Ibrahim also refuted recent rumours that Range Resources and African Oil which are currently conducting similar exploration in the Puntland region of Somalia may encroach into Somaliland territory.

Eng. Ahmed Ibrahim, Director-General of the Somaliland ministry of Water and Natural Resources described these rumours as baseless and stated that the government of Somaliland will protect the natural resources of the country, and described the current exploration in Puntland as merely an attempt by Range Resources and African Oil to sell shares in their companies in order to generate money.

Eng. Ahmed Ibrahim described the recent survey by TGS in Somaliland as extensive one which drawn lots of interest at the recent petroleum convention in San Antonio, Texas.

Source The Republican