Great Day in Puntland - African Oil to begin exploring for oil soon!!!

[Thankful]

Originally posted by Che -Guevara:

This is great indeed-ThankfulSP qouting Garoweonline without throwing accusations at it

Accusations or facts? I will quote Garoweonline because it is the new Puntland Government Website, I just wanted everyone to know who owns it.

 

It's a shame that the real Puntland government site is not being utilized. But lets not ruin this amazing day. I am confident that the people will benefit from this deal. President Faroole made the right decision.

[Jacaylbaro]

Originally posted by The Zack:

quote:Xafiiska la taliyaha Madaxweynaha ee arrimaha saxaafada Puntland

AKA the President's son

[N.O.R.F]

Where is Pilgrim to give us the real deal insights on this?

[General Duke]

^^^ you don't need the pilgrim you got the execs of the company with the admin in picture form. One does not care how we get there as long as the wells in Ufayn & Conoco get drilled, this is a new dawn lads. The old admin will be vindicated in it's pursuit of the Oil and Puntland is light years of the rest in this.

[N.O.R.F]

Is this the REAL DEAL? Waxbaa la kala saxeexanaayey for years now.

[Som@li]

Hmm, the shares are going up,Something is up.

[Jacaylbaro]

are u a share holder Dabshid ?? ,,

[Bokero]

Hey Duke and the rest.... please see the article i wrote on oil and minerals in Africa... if i were you i wouldnt explore anything until somalis have the capacity and know-how... plus a poltical settlement...otherwise our current predictment will be a child play please my read my article below

 

Natural Resources and Conflict: a briefing paper

 

In the modern history of developing countries natural resources have played an ominous role, rather than stimulating broad-based economic development, been a hindrance, creating a false sense of security and distortion; rather than reducing poverty and promoting democracy, it has concentrated wealth and power in the hands of a few; rather than contributing to social development, it has exacerbated inequality and higher levels of corruption. Worse still, in many countries natural resources have fuelled violent conflict. Over the past 60 years 40% of civil wars can be directly associated with natural resources; since 1990, there have been at least 18 violent conflicts fuelled by the exploitation of natural resources and other environmental stressors . This can be illustrated by the example of Nigeria where revenues generated by oil over the past 25 years have constituted a figure of six times that of the global aid budget received during the same period. Yet, Nigeria is poorer now than it was before oil production began and oil producing regions of the Niger Delta are seeing local grievances morphing into intractable conflicts and a huge international criminal syndicate.

With world demands for natural resources such oil, metal and timber growing at a phenomenal rate (e.g. from 2000 to 2007 the worlds daily demand for oil increased by 9.4 million barrels) resource-rich countries are in greater position than ever to extract better terms and use these resources as bedrock for development. The central challenge however remains; to paraphrase Joseph Stiglitz; how do we deal with the phenomenon of rich countries with poor people? The first place to begin is to understand the nature of the problem and the impact it has on the incentive structures of the host countries.

 

Rich countries poor people

Beyond its impact on conflict natural resources have had adverse economic and environmental impact. Studies show that since 1975 the economies of resource-rich countries have grown at a slower rate than countries that could not rely on the export of mineral and raw materials. Even when resource induced growth takes place it rarely yields growth that is to the benefit of society at large. For example Equatorial Guinea in 2007 had a real growth rate of above 22% but 70% of its population live below the poverty line. Angola, a country endowed with fertile lands and a rich sub-soil has consistently over the last decade registered a growth rate of above 13% of GDP but 40% of its population live below the poverty line. Resource exporting countries are also confronted by intense volatility, for example in the last 24 months oil prices fell from $147.27 to $32.40 per barrel. Boom and bust cycles such as these have devastating impact on the economy and stability. During the boom period “irrational exuberance” dictates policy, leading to overinvestment in white elephant projects and reckless risk taking. During the busts draconian budgets cuts are hurriedly introduced which in turn has a negative impact on the poor.

There are two further negative impacts natural resources can have that are worth mentioning; one is on the environment and the other on politics. On environment the impact of mining, especially alluvial mining has been devastating. Mining turns lush forests into a lunar landscape, with loss of biodiversity, erosion, formation of sinkholes and contamination of soil, surface water and ground water. Furthermore contamination resulting from leakage of chemicals affects the health of local population. Deforestation, which constitutes 20% of global carbon emissions is a common impact associated with mining, logging and charcoal production. Perhaps the most devastating impact of natural resources is on politics. It creates a set of incentives for governments to be unresponsive and unaccountable to their population (Niger and Uganda are examples of natural resource induced presidential term limits removals). Governments of sub-soil rich countries amass giant fiscal revenues that render them deaf to the cries and the needs of their populations. Such fiscal might allows such states the ability to buy out or repress their political opponents and makes them doubly hard to dislodge. Resource rich countries are also inhospitable environment for democratic growth; the majority of resource rich countries are either non-credible democracies or are straight forward totalitarian regimes.

 

From curse to blessing

At the theoretical and practical level many instruments have been developed and tested such as, sovereign wealth funds, transparency mechanisms, and institutional capacity development to mention just a few, with little success. However there are examples of countries (Botswana and Chile) that have succeeded in preventing the adverse impact of the natural resources, and this should assure us that there are solutions for this intractable problem. What complicates what is already complex task is that natural resources management goes to the core of national sovereignty, governments are sensitive to any external intervention in what they deem to be an exclusive realm.

However, experience shows that tackling these issues requires concerted and multifaceted approach that encompasses governance, macro and micro economic stability, capacity enhancement, and creative approaches that ensure the sector provides jobs. The issue employment is crucial to unlocking the mystery of rich countries poor people. In many of these countries natural resources such as oil accounts for more than 80% of government revenues, while the sector employs on average less 10% of the country’s workforce. This has serious ramifications; it leads to high inequality and concentrates wealth and power in the hands of a few. This not need be the case; the sector with a bit of creative thinking has the potential to unleash high level of employment. One area that offers potential for unleashing job creation and local private sector development is the local content provisions within capital intensive natural resource sector. These provisions give greater preference to nationals and national suppliers, however many countries have failed to deliver on the scale of local content captured by national firms. In Nigeria the oil sector constitutes 20% of GDP and 65% of budgetary revenues but about 80% of the value of work on oil and gas sector is carried out abroad . In middle income countries like Trinidad and Tobago where the energy sector assumes 40% of GDP only 10% is captured by local firms across the value chain . The value attached to this less exploited sector of the natural resource exploitation is enormous. Even with low share of the market Shell Group of Companies paid $9.2 billion for procurement from low and middle income countries in 2005. A slight increase in the market share in the supply chain for the local private sector could act as the necessary jolt to get stagnant economies moving and more importantly incentivising peace, by removing causes of conflict such as inequality, while instilling the dignity that comes from work.

One thing that hasn’t worked is sectorial approach in dealing with this problem. The linkages between different sets of problems (conflict, bad politics, fiscal excess, volatility, export-inhibiting exchange rates, corruption, disforestation, shortage of arable land etc), associated natural resources are so strong that working on one area will be insufficient to solve the problem.

Preventative action prior to any natural resource exploitation stands the best chance of successes, mainly because it allows for a window period to enacted necessary measures to prevent conflict and mismanagement before entrenched interests develop. Countries that have avoided misery-inducing consequences of natural resources have two common characteristic:

- transparent and effective public institutions

- Democratic system that is responsive to citizens.

These are prerequisite for more technical aspects of the recipe, such as stringent environmental laws, maintaining macroeconomic stability, diversification of the economy, and guarding against currency appreciation.

[General Duke]

Bokero Adeer your article means nothing t the argument here. Puntland will not waste time waiting for anyone.

 

North Adeer, this is not a new deal, the new admin wanted to review the agreement and make amendements if required. The review process is over and the exploration will continue. The first phase has been completed, now it's the drilling phase and the wells have been chosen.

[Fiqikhayre]

Cabinet passed the new agreement today, we will wait for Parliament to rectify it too in the coming days and weeks to come inshallaah. Guul.

 

Golaha Wasiirada PL oo ansaxiyey heshiiska Africa Oil.

 

9 Dec 9, 2009 - 9:02:03 AM

 

Kulan maanta 09 Dec,2009 isugu yimaadeen golaha Xukuumada Puntland kasoo uu gudoominayey Madaxweyne Farole ayaa lagu falanqeeyey wax ka badalida qodobo muhiim ah u ah heshiis horey loola galey shirkadda shidaalka Africa Oil.

 

Kulankaan oo la qaban jirey maalinta Khamiista ayaa waxaa sharaxaad badan ka bixiyey Madaxweynaha Puntland iyo Agaasimaha hayáda shidaalka macdanta Ciise Dholowaa herarkii ay soo martey wax ka badlida heshiiskaan horey dowladii Cadde Muse ula gashay shirkadaha shidaalka ka baarayey Puntland.

 

Golaha Wasiirada Puntland ayaa suáalo kadib u codeeyey in wax ka badalida qodobadda muhiimka u ah in shirkadahaan dib uga howlgalaan Puntland kuwaasoo ku gudbiyey cod buuxa.

 

Codbixinta Wasiirada ayaa ka dhigeysa in qodabada laga badaley ama lagu kordhiyey heshiiska shirkadda Africa Oil la horgeeyo Barlamanka Puntland maalmaha soo socda.

 

Madaxweynaha Puntland ayaa sheegey in dowladiisu ku guuleysato dib u saxida heshiiskaan taasoo uu balan qaadey markii uu qabtey talada isaga oo sheegey in 8 Jan 2010 soo bandhigi doonaan waxqabadka halka sano oo ay talada hayeen.

 

Mud.Farole ayaa saxiixi doona heshiiskan wax ka badalidiisa hadii Barlamanka Puntland ansaxiyo taas oo suurgalineysa in shirkadda Africa Oil dib u bilowdo howlihii shidaal baarista ee Puntland.

 

Sarakiil ka socota shirkadda Africa Oil oo malantii shaley booqasho ku yimid Puntland ayaa qaybtooda sixiixey heshiiskaan iyaga oo sheegey in bogg cusub u furmey dhinacyada heshiiskaan ka dhexeeyo.

 

Dhinaca kale waxaa maalinta berri ah la filayaa iney soo gaaraan magaalada Garowe Wafti ka socda ururka goboleedka IGAD.

 

Puntland ayaa maalmihii lasoo dhaafy waxaa soo booqanyey wufuud ka socota wadamada saxiibka la ah Somalia iyo xubno ka socda hayádaha caalamiga ee ah.

 

GAROWE ONLINE

[Bokero]

Duke

 

I suspected that much...reason, facts and experience has never swayed you before... these are complex issue and require thoughtful responses...but greed i suspect will win the day!!!

[Bokero]

its not matter of waiting for anybody!! ask yourself does puntaland have the know-how to negosiate? do they have the expertise to ensure maximum benefit? i know the people who are dealing with they have hazy past..be careful

[ElPunto]

^It's early days yet anyway. Let's see what they find. You can't negotiate in the absence of hard data.

[General Duke]

Bokero, Adeer Puntland is not more ignorant than the Arab Camel herders of the Gulf and they at least have used their Oil welath to better their lives, while Somali's are dating to travel to the deserts for lack of opportnity.

 

We need this deal, it will not be a panacea but it sure will be better than begging as all Somali's do now. Oil and Gas are commodities the world needs, your whole argument is to keep the stats quo and that I'd unacceptable. Who dares wins and Puntland and Somali's shall win.

[Fiqikhayre]

Puntland actually spent lawyers on the agreement that cost the state $100000 dollars in excess, so who is saying that things were not thought through.

 

Did this Bokero guy actually read the details of the new agreement or did he just bulk in? The last agreement had a few flaws that I nevertheless supported because I am in favour of exploration but the new agreement is spot on because the new admin has actually spend much more money from their pocket to better the agreement on the States side and because the new admin is fully in line to make this the best deal possible for its citizen and government alike this will easily pass Parliament as it is in full advantage on our side and because this government wants to make the process as transparent as possible.