An Energy Self Sufficient Somaliland

[Jacaylbaro]

PART ONE

 

 

Somaliland has recently elected a new government after years of delay, the anticipation has not only caused a political turmoil but it has also damaged Somaliland’s inevitability. The energy industry is not a sector that depends on international recognition it’s an industry that relies on getting the go-ahead from that right group.

 

The option that has not been fully examined by any government that Somaliland ever had is a NOC (national oil company). Most countries have one even if they do not produce oil, what’s remarkable is the fact that Somaliland doesn’t even have an agency that handles this vital energy source.

 

For many years the people of Somaliland have been constantly fed with news regarding foreign oil companies that will invest eminently, but the promises always ends in disappointment.

The time is ripe for the new government of Somaliland to seriously consider creating an NOC that comes under the new Ministry for Minerals Water and Energy or at least begin with an agency that will examine and oversee the national energy resources.

 

Foreign investors want to produce large quantities of oil and gas in order to get a good return. The Somaliland government’s first priority should be to develop Somaliland into a self sufficient energy producing country, to achieve this there is no need for hundreds of millions of dollars worth of investments, on the contrary the level of invest can be minimal in fact smaller than that of the proposed Berbera Cement Plant.

 

 

Obstacles

 

Even though most ordinary citizen believe that lack of foreign investment is the biggest obstacle to the development of energy sector in Somaliland, it’s actually the very difficult Geology that Somaliland is made of that keeps investors away. An example of this challenging geology is Somaliland’s most promising basin the Guban Basin which is situated in an inhospitable area of the Golis Range , places that have similar geology such as Oman requires a very high level of technology and therefore a substantial investment.

The Norwegian Geophysical Company TGS-Nopec made a very important seismic mapping campaign in Somaliland (land and sea) this achievement cannot be understated due to the fact that they used new seismic mapping technology that would give clearer vision of what lies beneath the surface. Even though it’s not known who owns the rights of the data it’s nevertheless a milestone for Somaliland.

 

An overhaul of the new blocks made by the former government and the numerous contradicting deals made with different companies is a must. Its obvious that the announced licensing round that would take place on the 19th of February 2009 was not warmly receipted by organisations whom the biding was suppose to concern, alongside the political turmoil and confusion that was raging back then, it was the lack of coherence between the old and new blocks that probably caused the biding fiasco.

 

Many unrecognised countries receive foreign investment and Somaliland is no exception, in Somaliland’s case the investment is directed to the livestock and the telecommunications industries. Limited foreign investments to the energy industry have trickled down to projects such as the LPG plant operated by SOMGAS in Somaliland.

 

The bottom line is that Somaliland needs to become more self sufficient and it has achieved this in many other areas, why not add energy self reliance to the long list?.

 

 

Mohamed Ibrahim

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Mohamed Ibrahim holds Bsc, Msc is an independent oil &gas consultant and an expert in the East African oil&gas industry. He can be reached at moh.ibr.consultant@hotmail.com

[rudy-Diiriye]

ayaamhan jac jacleehi baad 2 much iskaka digtey!! lol

[Naxar Nugaaleed]

This should be a none issue for Somaliland.. Its energy consumption is next to nothing. FYI, should it consider this, its lack energy resources should guide it to consider advancing green sources of energy. Perhaps after a few street lights and infrastructure should they need to worry about forming such an agency...