Friday, August 2, 2013
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.
Friday, March 12, 2010
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
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
Friday, October 23, 2009
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
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.
Read Medeshi News feed here: http://feeds2.feedburner.com/medeshi/lhmK
Posted by Medeshi on Friday, October 23, 2009
Saturday, June 7, 2008
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
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
Sunday, June 1, 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
Subscribe to:
Posts (Atom)
