Did Puntland state sell 67billion$ worth of assets for 10 million dollars?

[KEYNAN22]

Atleast according to Taipan financial news.

 

Resource Stocks: Blood in the Streets

 

You may remember Somalia as the scene of the Black Hawk Down incident in 1993. That's when vicious rebels attacked and killed 18 American soldiers in the streets of Mogadishu.

 

Nearly 14 years later, the country is still raging with violence, as tribal warlords battle radical Islamic insurgents for control of the region.

 

On April 20, USA Today reported that 113 people had been killed in the streets of Mogadishu. And Reuters reports that a mass exodus is underway as more than 320,000 people have fled the city in recent weeks.

 

To make matters worse, Somalia's rugged coast is under siege by a band of bloodthirsty pirates.

 

On February 25, 2007, Somali pirates seized a U.N. vessel that was delivering 1,800 tons of food to refugees. And on April 4, pirates, armed with assault rifles, hijacked a 900-ton cargo ship and held it for ransom.

 

Bottom line: Somalia is in a state of absolute chaos.

 

Of course, commonsense would suggest people stay as far away from Somalia as possible. But because of the global oil crisis, Somalia is starting to look like the "promised land" to desperate oil executives.

 

Resource Stocks: The Promised Land

 

Back in the late 1980s, Somalia was considered one of the hottest oil explorations spots on the planet.

 

And in a 1991 World Bank study, the world's leading geologists put Somalia at the top of the list of prospective commercial oil producers.

 

That's because Somalia used to be attached to Yemen, before the Great Rift ripped up the Saudi peninsula from Africa, thus creating the Red Sea (about 300 million years ago).

 

According to the U.S. Department of Energy (DOE) Yemen has proven oil reserves of roughly 6 billion barrels.

 

And based on Somalia's similar terrain and close proximity to Yemen, experts believe that Somalia is also brimming with sweet crude.

 

The Los Angeles Times calls Somalia's oil reserves a "prospective fortune." And the Energy Bulletin calls Somalia "oil rich."

 

"It's there. There's no doubt there's oil," explains Thomas O'Connor, the principal petroleum engineer for the World Bank, who headed an in-depth study of Somalia's oil prospects.

 

And make no mistake: Big Oil is hungry for Somalia's black gold. In fact, they've been after it for years.

 

Resource Stocks: Big Oil Heads for the Hills

 

In fact, as early as 1986, Conoco, along with Amoco, Chevron, Phillips and Shell all obtained exploration licenses from Somalia, reports the Los Angeles Times.

 

You can be sure, Big Oil was chomping at the bit to drill Somalia's black gold. And they had it right in their hands!

 

But guess what?

 

In January 1991, Somalia's dictator, Said Barre, was assassinated by murderous tribal warlords, and Somalia was thrown into absolute chaos.

 

Big Oil had to pull back on their exploration plans. Of course, the oil lobby put the heat on the first President Bush to do something. And in 1990, Bush sent troops into Somalia.

 

Unfortunately for Big Oil, Somalia didn't much like the U.S. presence, and in October 1993, under the Clinton Administration, tribal warlords launched a deadly attack on the U.S. Marines in Mogadishu's Bakara Market.

 

In what became known as the "Black Hawk Down" incident, 18 American soldiers were killed by a mob of vicious thugs.

 

Much to Big Oil's despair, support for troops in Somalia faded fast... and in March 1994, the Clinton administration withdrew the U.S. military.

 

With violence raging, and the Said Barre government gone, Big Oil's Somalia contracts were deemed worthless.

 

Somalia has been a hornet's nest ever since.

 

Consequently, Somalia's oil-rich fields have been virtually untouched and unexplored by modern technology.

 

Bottom line: Somalia is now brimming with "sweet crude" just waiting to be turned into big profits!

Of course, Big Oil has been standing on the sidelines waiting for order to be restored for nearly 14 years.

 

But remember: Crisis breeds opportunity, and those who hesitate are lost.

 

That's exactly what has happened in Somalia...

 

You see, one tiny 90-cent oil exploration company found a way to exploit Somalia's chaos for a lucrative deal that could make you a bundle. In fact, it could hand you a 789% return in the next six months. In the long run, it could make you 60 times your money. Maybe more.

 

I'll tell you how to buy shares of this stock in just a moment, but first, let me show you how they literally snatched Somalia's oil fortune right out from under Big Oil's nose.

 

Resource Stocks: Steal of the Century

 

As I mentioned, Somalia has been in turmoil since Said Barre was assassinated in 1991.

 

The country basically split into pieces... with different tribal warlords controlling different parts of the country. In fact, according to Foreign Affairs magazine, Somalia is the only country in the world without a functional central government.

 

Back in 2004, the United States and the U.N. helped Somalia organize a Transitional Federal Government (TFG) in an effort to unify the country.

 

After all, stabilizing Somalia is important for the United States oil interests.

 

Now, almost immediately, the TFG announced to the world that Somalia was essentially open for business.

 

Prime Minister Ali Mohamed Gedi told reporters the country was prepared to offer oil, gas and mineral concessions to foreign companies, although this invitation came with a warning: all firms were to do business only with the TFG, and not make deals with the various tribal factions.

 

"Foreign companies should desist in attempts to deal with local authorities... without prior written consent from the federal government," Prime Minister Gedi said.

 

"Any violation of this will result in negative consequences and the responsibility will lie with the culprits. Until the government puts in place specific legislation for natural resources management, such as a national hydrocarbon law, it will be categorically impossible to give concessions."

 

Now, with all the uncertainty, Big Oil played it safe, and stayed away from Somalia.

 

Big mistake!

 

You see, while Big Oil was standing on the sidelines waiting for the chaos to settle down...

 

A tiny 90-cent oil exploration company, whom I'll call Oil Raider (not its real name), signed a shocking oil deal with the Republic of Puntland, one of Somalia's tribal regions.

 

How big is this deal?

 

Well, Puntland occupies the northeast tip of Somalia. It is right on Africa's Horn, directly across from oil-rich Yemen! Because of its location, experts believe Puntland is sitting on the bulk of Somalia's oil wealth.

 

In fact, based on oil exploration conducted in the Puntland region during the 1980s by Conoco, it is believed that Puntland hosts a BILLION barrels of recoverable oil !

 

And get this: Not only did Oil Raider secure an oil deal... it landed an EXCLUSIVE CONTRACT for 100% of the oil AND minerals in Puntland, including oil, coal, uranium, silver, iron ore, copper, lead, natural gas... everything!

 

And here's the stunning part: The deal only cost the company $10 million...

 

Think about that...

 

With oil prices at $67 per barrel, the petroleum side of this deal could be worth $67 BILLION.

 

And that doesn't even include the potentially massive supply of uranium, silver, copper and other commodities that Puntland is sitting on.

 

Oil Raider is tiny, with a market cap of $90 million. And now, with a mere $10 million investment, it controls natural resource assets potentially worth $67 billion!

 

That's 670 times (67B/100M = 670) their current market value.

 

I think you'll agree: The upside is absolutely staggering!

 

And it only gets better...

 

Because Oil Raider has acquired some of the old Conoco sites, drilling could begin very soon. A lot of the legwork and due diligence has already been done.

 

But while Somalia is in a state of chaos, the Puntland region is a relatively peaceful oasis that sees very little violence.

 

Somalia Watch reports that Puntland is a "stable, peaceful, self-governing regional State with a well functioning public administration firmly in place." And the U.N. Refugee Agency (UNHCR) agrees, stating that in contrast to the turmoil in Mogadishu, Puntland remains stable.

 

In addition, my source in East Africa personally conducted a trip into the heart of Puntland, where he met with the oil minister, the finance minister, and a tribal elder. He also visited Oil Raider's newly acquired sites and reports that there is no fighting in the area.

 

That means oil operations will not be subject to the same level of instability that the rest of the country is experiencing.

 

I'll tell you how to grab a few shares of this tiny 90-cent oil exploration company in just a moment. But first, let's take a look at how these guys landed such a lucrative contract.

 

Resource Stocks: A Suitcase Full of Crisp, Cool Cash

 

Now, you can be sure... some folks were not happy about this deal. In fact, my sources in Somalia tell me that many people believe the Puntland region got robbed.

 

The agreement is so unfavorable to Somalia that oil and gas industry experts were bewildered when its news was announced late last year.

Dr. Ali Abullaahi Barkadle, a Somali resource and management consultant living in Melbourne, Australia, says, "The Puntland contract gave an unfair advantage to [Oil Raider] by lumping together mining and oil concessions and giving the whole state -- roughly 212,000 square kilometers -- to a single company was unheard of."

 

He continues, "It seems the negotiators had a very limited understanding of the mining and oil industry or were in need of quick money."

 

Omar M. Abdi and Salah Fatah, correspondents for the WardheerNews Group, a Somali news portal, state, "We wonder if any other country has been robbed of its wealth as belligerently as the [Oil Raider] did to Somalia. An interesting analogy to this deal, in our opinion, is when the Dutch bought the island of Manhattan in New York in early 18th century from the native Indians for a bunch of beads amounting to 60 Dutch Guilders, which was later converted to about 24 US dollars."

 

And international commodity expert and best-selling financial author J. Christoph Amberger agrees: "[Oil Raider] negotiated the most one-sided deal in years. How they did it, I have no idea. They literally took Somalia's oil fortune for pennies on the dollar. I wouldn't be surprised to see early investors capture a 100-fold gain on this. It's got post-communist Russia written all over it."

 

Now, you may be wondering: How did Oil Raider get the Puntland government to give them potentially $67 billion in oil reserves for a mere $10 million?

 

Well, Somalia is a poor country. Long-range vision isn't a luxury they can afford. People are desperate and surviving day to day.

 

So... $10 million in the short term is simply too good to pass up. And there apparently was some additional "incentive" involved in the deal. In fact, my sources in Puntland indicate that in addition to the official $10 million... a suitcase full money found its way into the hands of the Puntland negotiators.

 

Didn't anybody object to this unfair deal? They sure did. In a letter to the Australian Stock Exchange, Somali Prime Minister Ali Mohamed Gedi stated that the deal between Oil Raider and the Somali state of Puntland was invalid because ONLY the country's Transitional Federal Government (TFG) could negotiate the sale of mineral and petroleum rights.

 

But then... Mr. Gedi had a remarkable change of mind!

 

In fact, within days of vehemently opposing the deal, Prime Minister Gedi fully endorsed the deal!

 

Now, what caused the Prime Minister to suddenly reverse course and endorse the deal?

 

Again, there's no proof. But my sources believe that a fat envelope full of cash probably found its way into Mr. Gedi coat pocket. (Watch the movie Syriana, and you'll see exactly how these backdoor deals happen!)

 

But regardless of why Gedi changed his mind... the fact of the matter is this: Somalia sold its financial future for a short-term cash infusion. Of course, Oil Raider did throw in a 10% royalty payment against future revenues.

 

But still, the Puntland deal was lopsided. Savvy oil industry veterans showed up in Third World Somalia and took a clan of tribal warlords to the cleaners.

 

Is that fair?

 

Nope. Not by a long shot. And the people of Somalia could have done a lot better if the deal were negotiated with the long-term in mind.

 

But that's the way things go, and the reality of the situation is this: Crisis breeds opportunity.

 

People with the guts to exploit crisis situations get rich.

 

People who hesitate end up empty-handed.

 

So, this leaves you with a choice: You can shake your finger at Oil Raider... or you can step in and claim your share of the profits.

 

Before you make your decision, let me be clear:

 

This situation is, hands down, the most lucrative opportunity I've ever seen, bar none.

 

In fact, it reminds me so much of PetroKazakhstan (PKZ) that it's scary.

 

Remember how PKZ stepped into the chaos surrounding the collapse of the Soviet Union and handed early investors 14,000%?

 

While most oil firms stood on the sidelines, PKZ boldly staked its claim to Kazakhstan's oil riches.

 

Of course, after the heavy lifting was done, Big Oil stepped in and acquired PKZ... making early investors rich.

 

In fact, folks who got into PKZ early pocketed 140 times their money when China National Petroleum Corporation acquired the company for $55 per share.

 

And here's the good news for you: The tiny 90-cent stock I'm recommending today offers similar riches.

 

In fact, I believe a bidding war is on the horizon that could send Oil Raider's stock price soaring.

 

Resource Stocks: A Highly Strategic Location

 

As I mentioned, Oil Raider secured an exclusive contract for 100% of the oil, gas and natural resources in Puntland.

 

As you can imagine, Big Oil is pretty upset. And I don't blame them. Think about it: They had Somalia all locked up before dictator Said Barre was overthrown in 1991.

 

Big Oil knows Somalia is worth a fortune; they already had it right in their hands once... and now, tiny 90-cent Oil Raider has snatched it away.

 

But make no mistake: Both Big Oil and the U.S. Government want Somalia's oil reserves back.

 

You see, not only is Somalia's oil worth a billion...

 

...but Puntland/Somalia provides a highly strategic military location because it's situated on the coast, just miles from Saudi Arabia, and overlooks the daily passage of oil tankers and warships on their way to the Persian Gulf.

 

Whoever controls Puntland/Somalia... can block or protect the flow of oil to the West.

 

Resource Stocks: Takeover Bid on the Horizon

 

Now, because Oil Raider is publicly traded, Big Oil firms like Exxon and Chevron can simply conduct a takeover bid... and Somalia's oil fortune is theirs.

 

Big Oil is not shy about spending money to get what they want. And years of rising gas prices have filled their pockets with cash.

 

For a company like BP or Chevron, spending a few billion for a hot property is not a problem -- especially a property that practically guarantees a fresh and plentiful source of oil and gas.

 

In fact, in 2005, Chevron spent $17.3 billion to purchase Unocal. Conoco spent $35.6 billion to acquire Burlington Resources. And PKZ was ultimately taken over by China National Petroleum Corporation for $4.1 billion, or $55 per share!

 

And here's the thing: At the time, PKZ was sitting on roughly 500 million barrels of oil in Kazakhstan. Oil Raider is sitting on potentially 1 billion barrels in Somalia!

 

That's twice the oil PKZ had... and PKZ was acquired for $55 per share!

 

Imagine if Oil Raider were purchased for $55 per share?

 

People who get in now at 90-cent per share will become millionaires practically overnight.

 

And make no mistake: Now that Oil Raider has signed a deal with Somalia, Big Oil is ready to pounce.

 

How much will a Big Oil firm like Exxon or Conoco pay for Oil Raider? Let's take a look:

 

Resource Stocks: This 90-cent stock is worth $30 per share -- here's why:

 

Oil Raider has 100% rights to Puntland/Somalia's oil and minerals. And get this: They also own a uranium mine in Peru!

 

With uranium prices hitting $100 per pound, Oil Raider's uranium mine alone could be worth a few billion dollars.

 

But let's be conservative in our calculations and set Oil Raider's Peruvian uranium mine aside for the moment.

 

Let's also set aside the gas, coal, copper and iron ore they acquired in the Puntland/Somalia deal (potentially worth billions), just to play it conservatively.

 

Instead, let's focus on the Somali/Puntland oil...

 

As I mentioned, Puntland (located directly across from oil-rich Yemen) is sitting on an estimated 5 billion barrels of oil. But we don't know for sure exactly how much oil is there.

 

So, to be ultra-conservative, let's cut that number way down, and say that Puntland is only sitting on 500 million barrels of oil, just like PKZ. Fair enough?

 

Now, oil's average market price over the last year is about $50 per barrel.

 

That makes the Puntland oil reserves worth approximately $25 billion, which means Oil Raider controls $25 billion in oil.

 

Now, my sources tell me that Oil Raider has to split revenues with a silent partner.

 

So let's cut the $25 billion in half, and say Oil Raider is sitting on reserves worth $12.5 billion.

 

At 90 cents per share, Oil Raider has a market cap of $90 million. (As you may know, the "market cap" is just a measure of a company's market value. It's the value of all outstanding shares of stock, and basically determines how much the company would sell for on the open market. In this case, Oil Raider could be purchased for $90 million.)

 

Think about that...

 

Oil Raider has a market cap of $90 million. Yet its oil assets alone are worth potentially $12.5 BILLION!

 

That makes Oil Raider look like a serious bargain to Big Oil titans like Exxon and Conoco.

 

So... how much would Big Oil pay for $12.5 billion in oil reserves?

 

Well, in a bidding war, there's no telling how high the price could go. Remember, Big Oil is desperate for fresh sources of oil, and bidding could drive the price to $2.5 billion or even higher. That means Big Oil would be getting $12.5 billion in oil for $2.5 billion -- a very good deal.

 

But let's stay conservative and say Big Oil will only pay $1.5 billion, or $30 per share, for Oil Raider.

 

Could it go that high?

 

Absolutely. Remember PetroKazakhstan?

 

China National Petroleum Corporation paid $55 per share for PetroKazakhstan, handing early investors 140 times their money.

 

So a target price of $30 for Oil Raider would certainly be realistic. But let's get even more conservative...

 

Resource Stocks: Ultra-Conservative Target Price -- $8 by October 2007

 

Listen: I've made money for my 37,000 readers by being realistic, by being cautious.

 

And I'd rather err on the conservative side.

 

So, let's assume oil prices are going to drop -- in half -- down to $30 per barrel. Of course, most experts believe that oil will move higher, ultimately topping $100 per barrel.

 

But let's just look at a worst-case scenario and say oil will drop to $30 per barrel.

 

That means we need to cut our target price as well... to $8 per share by October 2007.

 

You can get in today for a mere 90 cents per share...

 

But you must act quickly because things are heating up fast. Listen to this:

 

Resource Stocks: It's Happening Right Now!

 

As I mentioned, the Clinton administration withdrew U.S. troops from Somalia after the Black Hawk Down incident in 1993.

 

Since that time, the U.S. has had little to do with Somalia.

 

Why bother with a bunch of bloodthirsty warlords, right?

 

But here's the thing: The U.S. has been silently building a presence in Somalia. You'd have to dig deep to find the facts. But they do exist. For example:

 

According to the Washington Post, in January 2007, the U.S. Military entered Somalia for the first time in nearly 14 years. And The New York Times reports that U.S. troops have returned to Somalia to support local warlords who have been fighting radical Islamic insurgents for control of Mogadishu.

 

In addition, the U.S. has been pouring massive resources into the Somalia over the last few months.

 

According to William Church, director of the Great Lakes Centre for Strategic Studies, the CIA has been funneling between $100,000 and $150,000 monthly into Somalia. And military equipment has been donated to Somali forces by Select Armor, a private company based in Virginia... just a stone's throw from the Pentagon.

 

In February 2007, President Bush announced that the U.S. Department of Defense has created a new Africa command, called AFRICOM, to coordinate U.S. interests on the continent.

 

Why has the U.S. suddenly renewed its interest in Somalia?

 

You guessed it -- oil!

 

Big Oil has a very powerful lobby in Washington. And oil is very important to the future United States. After all, our country depends on oil for nearly everything, including transportation and national defense.

 

And no matter how many bills Congress passes for alternative energy sources, we will never cut our dependence on oil -- never. It hasn't happened in the past 30 years and it won't happen in the next 30 years.

 

Make no mistake: Big Oil and the U.S. Government want Somalia's oil reserves in friendly hands. They want the region relatively stable. They want the path cleared so Big Oil can launch drilling operations. And they want Somalia/Puntland's strategic location overlooking the Gulf.

 

Of course, Oil Raider still controls the Puntland oil reserves. But according to my sources, Big Oil is getting ready to make a play for Oil Raider.

 

And here's the kicker...

 

Resource Stocks: A Legendary Billionaire Is Loading Up!

 

Until April 2007, Oil Raider was trading for about 3 cents per share... with a market cap of $90 million.

 

But on April 16, 2007, Oil Raider completed a 20-for-1 reverse stock spilt. This lifted its stock price to 50 cents per share, while keeping the market cap at $50 million... and it's doubled since then!

 

According to Business Week magazine, reverse stock splits are becoming common and are typically used by small companies looking to attract big buyers.

 

While the reverse split doesn't impact the value of the stock, it does make Oil Raider's stock price much more appealing to a broader range of investors, including mutual funds and institutional traders.

 

It also makes it more appealing to a potential Big Oil suitor... and sets the stage for a competitive bidding war.

 

And sure enough, on April 18, 2007, just two days after the reverse split, Oil Raider attracted their first major institutional investor.

 

In fact, Tudor Capital, a $16.1 billion investment firm managed by the legendary billionaire trader, Paul Tudor Jones, gobbled up 9.8 million shares at 50 cents per share.

 

I can assure you, Tudor Capital's interest is a strong signal that Big Oil is gearing up for a takeover bid. Something is clearly happening behind the scenes, and I believe this tiny stock is in play...

 

Get in now at 90 cents per share, and you could realistically sell your stake for $8 per share by October 2007. That's a 789% gain in six months. In the long run, you could see a staggering 60 times your money, maybe more.

http://www.taipanfinancialnews.com/resourcestocks0507.html

[KEYNAN22]

Range Resources LTD, Share Development Index.

 

http://www.rangeresources.com.au/Share-Price.27.0.html

[Peacenow]

You beat me to it Keynan. The company in question is called Range Resources.

http://www.rangeresources.com.au/

And yes Tudor Capital did buy into it. It is a hedge fund out of London. These hedge funds are very shrewd. They must know something. If that is so and there is oil. Then the deal has got to be declared invalid. But who will do this. What of authority.

[KEYNAN22]

Latest company announcement, 18th June 2007.

 

Slide presentation, scroll down.

 

http://www.rangeresources.com.au/fileadmin/user_upload/asx/ASX_Announcement_-_Presentation___18-06-07_.pdf

[Sophist]

peace now! what is the Tudor's website?

[KEYNAN22]

Peacenow wrote:

If that is so and there is oil. Then the deal has got to be declared invalid.

Absolutly! this deal must be declared invalid sooner than later. If the big oil companies conduct a take over bid on Range Resources LTD then it will be extremely hard to revoke this presposterous contract.

[Jacaylbaro]

and how do you know if the big companies like Conoco are sub-contracting these small ones just as a start point.

[KEYNAN22]

Thats a possibility.

 

Btw there is a certain Mr Liban Boqor who is a Key Non-Executive Management director in the company appointed May 2006, does anyone have more info on this traitor, and his background?

 

How can anyone working inside that company (being full informed with a holistic understanding of the situation) endorse such a deal against his own country?

[Peacenow]

Originally posted by Sophist:

peace now! what is the Tudor's website?

Their website is www.tudorfunds.com

Because it is a hedge fund, they are essentially private pooled funds. So they are not required to submit full disclosure. Only to their investors

You can get more information on the people behind the fund on

http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=61704

 

Originally posted by KEYNAN22:

quote:Peacenow wrote:

If that is so and there is oil. Then the deal has got to be declared invalid.

Absolutly! this deal

must be declared invalid sooner than later. If the big oil companies conduct a take over bid on Range Resources LTD then it will be extremely hard to revoke this presposterous contract.

It will be very difficult, that is true. But because it simply must be done. There are a number of things a authority can do. That is to say, if there is any authority or central government that is prepared to act. And secondly that it is competent.

It can approach the world press and tap into the Africa sentiment there is now in the world's media. If it is unfair and unjust, they will be people prepared to listen.

[KEYNAN22]

Here is their Annual report for the year ended 30 of June 2006

 

http://www.rangeresources.com.au/fileadmin/user_upload/Financial_Reports/Annual_Report_2006.pdf

 

If you scroll down to page 21 on their Income statement, you'll see that the company had a loss of 10 million 744 thousand dollars.

 

But the funny thing, if you scroll further down to their Balance sheet at page 22, you'll see that they have calculated their Total assets as = 21 billion 591 million 851 thousand.

 

Remind you this is a company that has a current market value of 90 million dollars and a loss in 2006 report of almost 11 million dollars.

 

Guess where those assets come from? Yes, its the estimated/realistic value they can yield of the somali resources in short time. Can you focking belive this? This little shi#t company (with a market value of 90 million) has a whole states resources listed as its own assets in the balance sheet of the annual report, absolutly fantastic.

[Peacenow]

So it is basically built on a pile of sand. If they have listed those assets down. Then it is basically a forward looking statement. Hence maybe that is why the market looks down on their value.

But then again, you only need a estimate of 'probable reserves' to satisfy the market. Difficult if you have hardly produced anything in the first place.

[Peacenow]

So it is basically built on a pile of sand. If they have listed those assets down. Then it is basically a forward looking statement. Hence maybe that is why the market looks down on their value historically.

 

But then again, you only need a estimate of 'probable reserves' to satisfy the market. Difficult as nowhere in Somalia has produced anything in the first place.

[Gordon Gekko]

I made an earlier post on this a little while ago highlighting that RR has got a little boost as of lately with Tudor Capital and UBS buying in to it.

 

Buy RR. I think theyll develop nicely if they get their IPO on AIM.

[Xudeedi]

Dear Gerdon, to get an IPO means that this OIL Raider has already secured contract with an investment bank like Morgan Stanley or Merill Lynch that underwrites their stocks, basically buying them by taking a high risk and then selling it to outside investors. However, the so called deal that the Oil Raider signed with the warlords in Puntland is technically defunct because they have no authority inside the territories where the bulk of this potential oil resides. The last conflict between the Puntland militia and the local army attests to this fact. Again, your suggestion coincides with the author of the posted article that big Oil Company either Chevron or Shell will overtake the OIL Raider in a takeover bid, an event he reckons will surely come to pass and which will drive up the value of the stocks of this mysterious company.

 

The Deal is NUll and Void. Until a government of national union is established ,which I think will not come any time soon, people who think they can profit from Somalia's crisis, esp. in the Energy sector, will be proved wrong. Just Imagine the recent showdown between a powerful Ethiopia and ONLF. ONLF , as we all know, pre-warned the Chinese Oil company from proceeding with the deal. They got their first severe punishment only during the exploration phase.

[Xudeedi]

Puntland – On Life Support?

Salah Fatah

July 07, 2007

 

 

Bosaso City, the financial capital of Puntland, used to be one of the safest places in all of Somalia until recently, when a rash of murders, rapes, robberies and kidnapping of children for ransom became all too common. What is even more alarming about this crime spree is the fact that many people are convinced that some of the perpetrators are the very people tasked to maintain law and order. It is no secret that the Police department is largely disgruntled due to lack of payments of their salaries, sometimes months on end, among other reasons.

 

While the current escalation is causing a great deal of anguish and uncertainty amongst the citizens, it was predictable and directly attributable to an ongoing rampant corruption, negligence and misplaced priorities. The blame for the deteriorating security situation is squarely on Cade Muse and his administration. It is their responsibility to safeguard the wellbeing of all of Puntland’s communities so long as they choose to remain part of his administration. On the other hand, the stakeholders are not entirely blameless as long as some of them remain silent and continue to offer tacit support – perhaps out of consideration for a senior clan member deeply embedded with the administration (a case of strange bed fellows).

 

With that said, the question remains: Is Puntland today as important to all of its member communities as it was a decade ago? I believe the time has come to reassess this partnership. The status quo is not acceptable and may even be to the determent of some communities given their legitimate grievances including lack of developmental support as well as unfair distribution of resources amongst the partners. Additionally, conflicts in the recent past drove home the point to certain communities, that Puntland can not be considered a reliable partner where matters of security are concerned.

 

It seemed like a good idea at the time! Absent any representative national government, creating Puntland as a regional administration that protects and serves the interests of its constituents was and remains to this day, the next best thing. The hopes and aspirations of the people were riding on this new administration for a peaceful and prosperous region that plays a lead role in quelling the deadly internecine conflicts throughout the country, as well as contributing to the restoration of the Somali nation. These were indeed lofty goals and an ambitious undertaking, towards which Puntland’s previous administrations made tangible progress. They were successful in providing stability throughout the region and at the same time created a business friendly environment that attracted merchants from as far as the northwestern states of Somalia and Ethiopia. These are significant achievements by any standard and the key ingredients for building a viable society.

 

It was entirely unexpected that rather than building on the successes of their predecessors, the painful, slow process of unraveling the hard earned progress began soon after the current administration took the reigns. They have shown a propensity for entering into questionable contracts with obscure companies at a tremendous disadvantage to Puntland. These deals raise some troubling questions regarding their failure to seek appropriate input from experts and ignoring professional and legal advice when offered. Therefore, one can only surmise that there must be more to these contracts than meets the eye!

 

The selling out process, and there is no politically correct way to characterize this, covers the most important national resources, i.e., fisheries, minerals, hydrocarbon assets and the mother of all giveaways, a contract signing away exclusive rights to all life stock exports from Puntland to a foreign merchant at the expense of the people of Puntland. I was able to obtain a copy of this contract, which I would like to share publicly; it illustrates the handy work of unrestrained greed and a glaring lack of accountability (see attached pdf).

 

Finally, the haste in which these damaging deals were made leads one to believe that a looting scheme is afoot, designed to line the pockets of individuals before a national government with enforcement capabilities is in place. It is evident that crime, corruption, cronyism and incompetence have taken their toll – perhaps causing the Puntland administration to crumble under their cumulative weight. Whether or not it can survive the current downward spiral is anybody’s guess.

 

Salah Fatah

E-Mail:sfatah2@yahoo.com

 

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