Oil can be a boon for Somalia The African nation has a real chance to set in stone the foundations of a better country for its people By Nima Khorrami Assl, Special to Gulf News Published: 00:00 April 30, 2012 Be the first to commentShare on twitterShare on facebookShare on emailShare on printMore Sharing Services18. Image Credit: Dwynn Ronald V. Trazo/©Gulf News Situated within an ‘oil window’, Somalia is certainly a prospective for gas and oil production. Ever since the fall of the Somalia’s pro-US president, Mohammad Siad Barre, in 1991, the country has been in a state of chaos and disorder. In the absence of a central authority, tribal conflicts, warlordism, and a resurgent militancy in the form of Al Shabab have come to dominate and define the political reality of Somalia. Economic stagnation and lawlessness, moreover, have given rise to one of the oldest profession’s in human history, thereby turning a dangerous majority of the bright yet hopeless Somali youths into the world’s most prominent pirates. And as if this is not depressing enough, an unfortunate geography combined with a lack of state-planning have brought food insecurity and malnutrition to the proud inhabitants of this ancient land. That Somalia has not received a single piece of positive coverage over the past 20 years, therefore, ought not to be surprising. After all, this is the “most comprehensively failed state” where human suffering starts at birth. However, Somalia’s fortune might be about to change. This anticipated alternation, in turn, is not because Al Shabab’s power and influence is ebbing. Nor is it due to the approaching expiration of the Transitional Federal Institutions mandate which some claim will help to support a more inclusive political process. Rather, it is in the renewed international interest in Somalia as an oil producing nation that one can trace a fast-changing geostrategic role for Somalia; one that will no longer be confined to counter-terrorism and anti-piracy efforts. After British Prime Minister, David Cameron, hosted an international conference on Somalia on February 23, The Observer revealed that London has been in a “secret high-stakes dash for oil in Somalia” in return for British humanitarian aid and security assistance. The revelation and British Foreign Minister William Hague’s comments during his visit to Somalia, where he talked about “the beginnings of an opportunity to rebuild the country”, cast a question mark over London’s, and indeed the entire western world’s humanitarian endeavours with some commentators going as far as dubbing the summit as ‘aid for oil’. Article continues below To be sure, there is nothing new or unique about Britain’s apparent interest in Somali oil. Instead, this is a continuation of US policy between the 1950s and the early 1990s when giant American oil companies, such as Conoco and Chevron, had obtained the right to explore Somalia in three major phases. The American government, especially the Administration of George H.W. Bush, had a national security interest in these projects as it was keen on “developing crude oil sources in the regions away from the Strait of Hormuz”. As a matter of fact, some analysts allege that the key reason behind Washington’s decision to dispatch US troops to Somalia in 1991 was less about safeguarding aid shipments and more about protecting Conoco’s multimillion-dollar investments there. Conoco had made “very good oil shows”, and that it was adamant to stay on though it eventually cited force majeure and the whole issue of Somali oil was suddenly put to rest. Alternative energy Situated within an ‘oil window’, Somalia is certainly a prospective for gas and oil production. In other words, there is no doubt among western policymakers that there is oil in Somalia but they just do not know how much. Their assumption is backed by various studies conducted by the World Bank and the Texas-based Hunt Oil Corp. According to a 1991 World Bank study, ‘the geological parameters’ in the Puntland are “conducive to the generation, expulsion and trapping of significant amounts of oil and gas”. After its successful exploration efforts in southern Yemen in the mid 1980s, Hunt Oil too reached the same conclusion claiming that “the estimated one billion barrels of Yemeni oil reserves were part of a great underground rift, or valley, that arced into and across northern Somalia”. Following in the footsteps of the US government, thus, Britain, China, India, Canada, and Australia have now a national security interest in exploring Somali oil. This is, among other things, due to the fact that the sub-region of Gulf is set to undergo a prolonged period of strategic uncertainty and political instability, and that involvement in the future Somali oil industry would be ‘a boon’ for the their economies. To this end, Horn Petroleum Corporation, a subsidiary of Canada’s Africa Oil, began its oil exploration operations in the arid north-east of Somalia in February, drilling two wells to a depth of 3,800m for the very first time in 21 years. Chinese giant corporation, China National Offshore Oil Corporation (CNOOC), has also been granted legal permission from Somalia to drill for oil, which, in and by itself, is yet another proof of China’s desperate need for alternative energy sources other than those from the Middle East. Similarly, India has started making approaches to get a piece of the Somalia oil. New Delhi has proposed to train the future Somalia army, increased its trade ties with Somalia, and integrated Somalia into its e-network “to prop and increase” Somalia’s IT capacity. British Petroleum, finally, is in talks with the Putland authorities to gain exploration rights and has already unveiled an initiative to support job-creation projects in the coastal regions of Somalia. Given Somalia’s geostrategic location and proximity to strategic waters in the Horn of Africa, there are good reasons to be optimistic that if adequate amount of oil is found, Somalia could, over the medium term, become a major trading hub and an attractive destination for foreign investment. There is no public infrastructure to speak of and the means of transportation are literally nonexistent. Discovery of oil as well as its need for large-scale infrastructure projects, in essence, will catalyse what human suffering over the last 20 years has failed to do: a genuine push by the international community to put an end into Somalia’s social, political, and economic problems. For the first time in many years, therefore, the Somali nation has a real chance to set in stone the foundations of a better, more prosperous country for its future generations. For this to happen, nonetheless, Somali politicians and tribal leaders must show a high degree of pragmatism, seeking to cooperate in the national, as opposed to tribal, interests or else risk disintegrating Somalia into two separate states. Somalia is fragmented into a multitude of ethnic lines with plenty of transitional governments who could very well be tempted to use their newly-found wealth to advance their own specific agendas and score political points against one another. There is also a need to establish a legal framework in order to determine oil revenue-sharing procedures, and reduce the likelihood of corrupt practices by officials. Needless to say, there is an important role for the international community in all these, since Somalis themselves lack the required legal and financial expertise for such undertakings. Most importantly though, the international community should waste no time in mediating between Kenya and Somalia who seem to be in a disagreement over the location of their boundary line in the Indian Ocean. At stake are their “legal claims to sell rights for exploration and collect revenue from any discovery”, and hence their disagreement can easily turn into a full-blown conflict should it remain unresolved. http://gulfnews.com/opinions/columnists/oil-can-be-a-boon-for-somalia-1.1015422#.T52yYSmV7bw.twitter

Che -Guevara;822776 wrote: You do understand Range Resources can make invest in Somaliland as well. The point is these people will go to any place where they think is gonna make them money. It really doesn't matter where. yeah, companies love throwing away millions to drill just "anywhere"...brilliant hopefully you're at least able to lift heavy things

AfricaOwn;821343 wrote: Isn't putnland part of Somalia? If these talks are between SL and Somalia then wtf are they complaining about? LOL

Beer-Gaal;820182 wrote: Yes Imaam Faroole has one more year to stay in power. tks BG

Has Farole's presidency been extended for an additional year to Jan 2014? Anyone ? Anyone ?

Dr_Osman;820147 wrote: BREAKING NEWS!!..New constitution of Puntland unanimously approved. Posted by pi English on April 18th, 2012 Garowe(Puntlandi)—New constitution of Puntland was unanimously approved on Wednesday by representatives from across Puntland , Puntlandi Learns. Referendum conference on the constitution which has been continuing at Puntland’s parliament house in Garowe ended today after great majority of envoys voted for “ YES”. 477 out of 480 envoys vote for “ YES” to the constitution and six voted “ NO” , “This was great achievement of Puntland”, says interim committee of election.Almost all representatives from Puntland regions voted YES:- • Bari : 92 Yes :1 No • Mudug: 51 Yes: 2 No • Nugaal: 53 Yes: 0 No • Sanag: 84 Yes : 2 No • Sool: 83 Yes • Puntland Gov. 99 Yes: 1 No • Punsaa 05 Yes • Diaspora 05 Yes Celebrations and jubilations followed immediately after referendum committee announced the result. Mohamed Hassan Barre , Head of election committee says this achievement comes after hard work and commitment by Puntland people. From today onwards, Puntland has new functioning constitution which allows multi political parties and democratic elections. Puntlandi.com Landslide

kingofkings;819996 wrote: seriously when will PL put two bullets between their their eyes. i'd like to see that

kingofkings;819781 wrote: :eek: where will he flee to; the west:confused: i hope the terrorist is arrest by the cia or interpol if that's true then what a disgusting human being

General Duke;818812 wrote: Burn Notice, the whole of Somalia is moving in the right direction. Puntland new constitution, the new federal constitution, the leaner, smaller Parliament and the ending of the transition in Mogadishu are great signs of progress being made. Yes its truly remarkable that the world is focusing on Somalia for issues outside of poverty, piracy and anarchy. Somalia is coming back and that is marvelous. Indeed GD...transformational

General Duke;818770 wrote: It's good to see you my friend. Cheers GD What are your thoughts on the gathering to ratify the new Puntland constitution? I believe it is the final dotting of the i's and crossing of the t's to allow the big boys (most likely BP) to sign up for the offshore exploration Exciting times indeed..great to see the world focusing on Somalia

Mario B;818773 wrote: What if, I sometime ask myself, there is no oil, how are we ever going to ever recover from that!? All I know is "Somalilanders" will be celebrating all the way to the nearest mafrish, as for the rest of us we might need something stronger... NO need to fret Mario Hill is VERY happy that the drill to date shares the same geology as the prolific Yemen oil fields..just a matter of time

General Duke;818674 wrote: Its a new world... Good to see PL leading the way GD

General Duke;812672 wrote: He was born and raised in the City. I have been told he is there for personal reasons. Thanks GD I didn't know that Cheers

General Duke;812509 wrote: Cade Muse started the development projects that are the hallmarks of Puntland development. The expansion of Bossaso port, building the runway and the livestock quarantine and export site.. He is also the leader who signed the agreement that started the Oil exploration. However he will always be remembered for his gracious exit when he lost the election to Faroole. An example to all and a man who will be remembered in Puntland with affection. Hi Duke Any idea as to why he is in Mogi?

Al-Shabaab Crumbles and Defects in Puntland The armed fighters in Puntland’s Galgala hills have been undergoing a massive series of defections the past few weeks, losing officers and other key personnel to Puntland State security forces. This week, the largest-yet loss of manpower has befallen the Al-Shabaab divisions based around the oasis town of Galgala. Earlier this week, a group of heavily-armed men turned their weapons into Puntland authorities and pleaded for immunity. This has been the trend ever since the leader of the Galgala militants, a weapons trafficker known as Said Mohamed ‘Atom,’ pledged his organization’s allegiance to Al-Shabaab and the wider Al-Qaeda network. Atom’s supporters, many of whom were local clan militia with personal grievances, have lost confidence in the organization, which they now view as fighting a never-ending parochial battle. Local and state authorities said that an immunity deal still applies, and that when peace is forged, the displaced people of the region will be returned to their homes in Galgala. The traditional elders of Galgala and the surrounding areas all back the Puntland State authority and have pledged their own sons to fight the militants. Residents of the region, as well as displaced natives near Dissident Nation sources in Bosaso stated that they are expecting an imminent collapse of the Galgala insurgency. Hirsi Fiqi, Editor Didn't we have Atom supporters on here??? -~----------~----~----~----~------~----~------~--~---

General Duke;808356 wrote: Yusuf was a decorated hero in 1964 war as well 1978. He was sick for a long time and now has peace. Sad news Visionary who only wanted peace for his people

faarah22;807463 wrote: " anyone know this guy??" are you addressing me burn? you or the BB in general Faarah

lol...who me??? nah.... I'll leave that to Rueters and Bloomberg you stick with the propaganda Raxenreeb and Galaga news

you're un-biased feedback pls Nassir LEAKS, — March 21, 2012 1:08 — 0 Comments Somaliland to Cede Disputed Territories to Puntland Just hours ago in a phone call to our Nairobi contact, we were made aware of a groundbreaking piece of information that may change the landscape of Northern Somali politics. Somaliland’s president may cede key territories to Puntland in a deal over oil exploration. In an exchange that would effectively give Puntland total control of the Nugaal Valley basin, we’ve heard from our network in Kenya that Somaliland’s president is in negotiations with the Puntland leadership to hand over the disputed Sool and Sanaag provinces to the authority in Garowe. Currently, Puntland controls a small strip in eastern Sool as well as the eastern half of Sanaag Province. The rest of Sool is disputed by Somaliland and a new movement known as Khatumo, meanwhile the western half of Sanaag is ruled from Hargeysa, the capital of Somaliland. Puntland is currently well on its way to making progress towards the highly prospective Nugaal Valley basin, which is speculated to have billions of barrels of oil. Somaliland’s leadership is thought to have abandoned its hopes of exploring the volatile region, instead choosing to allow Puntland to finish the job in a deal that would distribute revenues to the regions of Somaliland. Puntland has stronger support from locals in the region due to clan ties, and will have an easier time delegating with locals on exploration goals. This latest development stems from Somaliland’s recent reintegration into the Somali political process following the February 23 London Conference on Somalia. It’s a process that will soon see Somaliland presenting its own federal authority with which to take a role in the post-transitional Somalia. Furthermore, President Faroole of Puntland has made direct promises that oil revenues would be distributed to all of Somalia’s future federal states and the central government, easing worries that oil exploration would become a factional tool. Since the spudding of the Shabeel-1 well, Puntland’s bravado and forwardness about its claim to the disputed Sool territories has grown much stronger in frequency. This latest line of information is coming from inside Somaliland. Hirsi Fiqi, Editor DissidentNation.com

faarah22;807398 wrote: oil leak are small price to pay for the untold riches awaiting somalia if this thing materializes. besides accidents happen in every sector, so dont get discouraged. safety will be increased. let the oil flow. Agreed...blah blah blah anyone know this guy?? Puntland Leader Makes Bold Promise of Oil to Feuding Clans During the second day of Puntland State President Abdirahman Faroole’s peace negotiations in the troubled village of Rako Raaho, just over the hills south of the Dharoor Valley, he addressed the topic of exploration in the region to a crowd of elders. An audience consisting of high-ranking traditional elders from the Karkaar Province’s feuding clans, outside elders, negotiators, and Puntland government figures received the president’s speech. Faroole gave a surprising, but relevant address on oil exploration in the region to the elders, thought to be an incentive for the cessation of hostilities between the feuding clans. A very joyous result is coming from the current oil drilling program, a result that will allow all of the people of Puntland to prosper. The past week has seen the longest peacemaking mission undertaken by the current president of Puntland. The last step in the current peace process is being finalized. President Faroole additionally stated that the feuding clans ought to make this peace process the last one. The president closed his speech by repeating his call for unity among all Somalis, and that the wealth of Puntland belongs to the entire nation. Bold references to oil riches in front of an audience of this caliber is very telling of the actual progress being made in the Dharoor Valley drilling program. http://dissidentnation.com/puntland-leader-makes-bold-promise-of-oil-to-feuding-clans/

Qandalawi;807131 wrote: Diversity is good, different companies should get the offshore contract, not everything for Range. Besides, I thought the Chinese were or other Asian companies were doing the Offshore. Range will farm out around 80%-90% to bigger companies .ie BP, Shell, Tullow

Carafaat;806298 wrote: Loool, it doesnt take much more then some market gossip for increased trading in share. And these little comppanies dont have that much daily traded volume. So its quite easy to manipulate the markets, and media and puntland goverment seem to help with the buzz. Burnt Money, you call Bilan BinLaden? she must have terrorized your business there. ZZZZZZZZZZZZZZZZZZZZZ...come with something original or funny pls

i'm feeling generous today Carafaat so here's a free lesson "don't look at how things ARE but how they MIGHT be"...you will live a happier and more prosperous life ...take the time to look over my years of posting and you will know what i mean :

thanks GD fortunately most puntlanders are as forward thinking as you which is why the project has moved forward and a historic commercial find will soon be announced...listen to the opening ceremony on youtube...fantastic words by ALL involved

I'm so popular today no point arguing with an ***** GD...they only bring you down to their level and beat you with experience