Puntland: AfricaOil update

[Peace Action]

Originally posted by Burn Notice:

quote:Originally posted by Land_Soldier:

Burn Notice,

 

Are you aware that explotation of natural resources in conflict areas, is likely to fuel the conflict?

 

And hasnt this been the case in Puntland, where many died because of the conflict on natural resources?

Land Soldier

 

With the exception of the Galgala conflict, Puntland has been a peaceful region of Somalia...the company is honouring its agreements with the government elected by the people to explore for resources...nothing sinister as some on here profess

 

Do you want foreign investment in Somaliland? I never realised "development" was a dirty world..someone needs to tell China to stop producing and utilising the worlds resources

 

I find the continual killing on innocent people by Al Shabab more despicable than anything Africa Oil could ever do

Well said. :cool:

[General Duke]

Well said, Ufain & Conoco will be the turning point in modern Somali history..insha Allah

[Land_Soldier]

There have been so many clan fights since the run on oil and natural resources.

 

This has created instability. You guys try to ignore the real cause of these conflicts.

[General Duke]

^^^Cowke adeer spare us the rubish. 99% of Puntlanders agree with the exporation and exploitation of our natural resources, we are tired of the status quo.

[Amistad]

If Tullow is involved with this, as they saying they are this quote is direct from their own website, it seems very legit.

 

02 Sep 2010 Tullow acquires a 50% interest of the East African Rift Basins of Kenya and Ethiopia.

 

Tullow Oil plc (“Tullow”) announces the acquisition of a 50% operated interest in six adjacent licences covering the East African Rift Basins of Kenya and Ethiopia, an area of 97,000 sq km.

[Amistad]

http://www.africaoilcorp.com/i/pdf/Annual_Information_Form_2010.pdf

 

seems as though they dont recognize Somaliland borders

 

Africa Oil

 

RISK FACTORS

The Company’s operations are subject to various risks and uncertainties, including, but not limited to, those listed below.

POLITICAL AND COUNTRY RELATED RISKS

INTERNATIONAL OPERATIONS

Africa Oil participates in oil and gas projects located in Somalia, Kenya and Ethiopia, all emerging markets. Oil and gas exploration, development and production activities in emerging markets, are subject to significant political and economic uncertainties which may adversely affect the Company's operations. Uncertainties include, but are not limited to, the risk of war, terrorism, expropriation, nationalization, renegotiation or nullification of existing or future concessions and contracts, the imposition of international sanctions, a change in crude oil or natural gas pricing policies, a change in taxation policies, and the imposition of currency controls. These uncertainties, all of which are beyond Africa Oil’s control, could have a material adverse effect on Africa Oil’s business, prospects and results of operations. In addition, if legal disputes arise related to oil and gas concessions acquired by the Company, Africa Oil could be subject to the jurisdiction of courts other than those of Canada. Africa Oil’s recourse may be very limited in the event of a breach by a government or government authority of an agreement governing a concession in which Africa Oil acquires an interest. Africa Oil may require licenses or permits from various governmental authorities to carry out future exploration, development and production activities. There can be no assurance that Africa Oil will be able to obtain all necessary licenses and permits when required.

INTERNATIONAL BOUNDARY DISPUTES

As a result of ongoing political disputes, the legal international boundaries between Somalia (which includes Puntland, a semi-autonomous region within Somalia) and its neighboring countries are in dispute. In September 2007 the Company was advised that the Ministry of Water and Mineral Resources of the Republic of Somaliland was claiming ownership of the Nugaal and AhlMedo Valley basins, including some or all of the area that comprises the blocks in which the Company has the right to acquire an 80% interest, granted by the Government of Puntland. The Republic of Somaliland and Somalia have disputed their respective borders since May 1991 when the Republic of Somaliland was established.

The Company disputes the claims of the Republic of Somaliland, however, the outcome of this dispute cannot be predicted with any certainty.

POLITICAL INSTABILITY

Africa Oil is highly exposed to significant political risk in Somalia. The political climate in Somalia is characterized by strong internal political tension, turmoil and factional fighting. The political tensions sometimes escalate into violence or the threat of violence.

Throughout much of 2008 and 2009 Somalia experienced heightened instability. The Transitional Federal Government (“TFG”), which was the primary ruling party in Somalia, was dissolved in favor of a coalition government which includes representation of both the TFG and the Alliance for the Reliberation of Somalia (“ARS”). On January 31, 2009, Somalia elected its new President who has vowed to unify all factions of Somalia and bring peace to neighboring countries. The Company continues to work and cooperate with government leaders in Somalia, however, there can be no certainty as to if, or when, the current political instability will be resolved.