Asante Oil, Ahsante!

[Jacaylbaro]

Will Norwegian Footballers Score Big in Somaliland?

 

 

Hargeisa (Observer): Listen to any Somaliland citizen, nomad or savvy qat-chewing urbanite and they will all tell you that there is oil in abundance under the soil. Chevron and Conoco were here before Siad’s demise, and they are still claiming force majeure after all these 17 years. They must know something is the common refrain.

 

Unfortunately, Somaliland has been disappointed many times. Carpetbaggers and itinerant wheeler dealers have come waving phony money and inflated credentials. The promises these dealers made with eager bell-boy turned ministers have all turned out to be the pipedreams they really were. No oil exploration and no real drilling, just no name companies trying to sell Somaliland concessions to third parties.

 

Now come the Norwegians! Norway is one of the world’s wealthiest nations. Most of its wealth is derived from the North Sea oil fields. Norway has done extremely well with its oil money. They have transformed their really cold fjords into habitable, highway accessed lands. Oil has been good to Norway.

 

On 21 August patrons and the CEO of a new oil firm called Asante Oil made a fine presentation at the Maan-Soor. This was unlike anything Somaliland has seen before. Transparent, upfront and with clarity, principals of Asante Oil explained to the public that they have purchased exploration and commercial exploitation rights to two concessions for at least 25 years. The concessions named SL13 and SL14 an area west and south of Burao described as a Jurassic rift basin. They explained who they were, their prior investments and experience and openly stated the signing bonus they promised to the government of Somaliland, namely a borehole drilling rig and assistance to line ministry with some social welfare projects. Some of the people in the audience were taken aback a bit, Asante must be hiding something.

 

Considering all that we have seen before Asante Oil appears patently different. Firstly, they were being guided by a well-informed Somaliland geologist. Secondly, they were not peddling their concessions to other companies; rather they were willing to do the exploration and exploitation themselves. The managers also seem, at least on paper, well qualified, with many years of experience in oil exploration.

 

Asante was founded just six months ago in London. The Chief Financial Officer of Asante Oil is the Norwegian footballer Christian Eidem who according to the Indian Ocean Newsletter owns 11% of the company. Kjell Siem, another Norwegian sports football personality, former manager of the club Valegenera and current manager of the South African Premier Soccer League, is also a part owner. The major stockholder of Asante is Kjell Rokke the owner of the conglomerate Aker, who is reported to own 40%. The CEO is, however, Tor B. Lund, former manager in Libiya for Statoil/Hydro.

 

In their presentation Asante indicated that they were also interested in more concessions. They explained that they have commissioned TGS-NOPEC to acquire marine seismic data and aeromagnetic data covering 34,000 km.

 

According to the company plan, Asante is ready to go. Ibrahim Mohamed Hassan, a Somaliland geologist will start establishing Asante’s Somaliland operation in the next couple of weeks. Seismic data acquisition will start late 2008 early 2009 and exploration and drilling will follow.

 

Somaliland has been waiting for a serious oil prospecting company for many years. The big American companies who signed deals with the former regime are sitting on their force majeure clauses. Asante may trump them all.

[Coloow]

"Asante Oil"

 

Something fishy about the name- don't you think?

 

Somaliland needs water and not oil.

 

Don't go for champagne when you can't quinch your thirst.

[Jacaylbaro]

Somaliland’s Petroleum Ambitions Make Headway

 

24 August 2008, Hargeysa, Somaliland - A company of Norwegian oil executives from Asante Oil in Norway began an official 5 day Somaliland visit last Wednesday (20 Aug) after they flew into Hargeysa’s Egal international airport and were met by the Director General of the ministry of Water and Minerals (MW & M), Mr Ahmed Ibrahim Sultan and other ministry officials.

 

Speaking to reporters in airport VIP lounge, Mr Sultan briefly explained that the Norwegian delegation have come to finalise a work program with the ministry and complete outstanding details in the oil exploration agreement which the Norwegians signed last May’08 with the ministry.

 

Asante Oil has been licensed by the ministry to explore and extract natural gas/oil resources in blocks SL13 and SL14.

 

The Norwegian delegation comprised of Mr. Jarand Rystad (delegation head), Mr. Christian Eidem, Mr. Tor B. Lund and Mr. Muhamad I.Hassan, head of Asante Oil office in Somaliland.

 

The head of the Norwegian delegation, Mr. Rystad explained to reporters on Thursday (21 Aug), in a joint press conference held with the MW & M at Maansoor Hotel in Hargeysa, that Asante Oil is on its final leg in preparations to start its drilling operations by 2009, once the acquisition of the seismic data taken by TGS-Nopec is finalised by end of 2008.

 

Asante Oil executives gave a brief description of the company’s history, exploration plans, drilling program and highlighted costs already spent on their S/land acquisition amounting to millions of dollars.

 

The Norwegians said that their exploration agreement with the ministry did not involve any payments of signature bonus fees partly because this was covered by the company which part-funded the TGS-Nopec 2D seismic [offshore/onshore] survey carried throughout S/land during 2007/8.

 

Furthermore, in place of bonus fees, Asante Oil has guaranteed to carry out a social development programmes in connection with the agreement in which Asante Oil will provide one water-borehole rig and it’s maintenance for the people living in SL13/14 regions and at same time provide vocational training in oil industry job related employment for locals.

 

The minister of Somaliland’s MW & M, Mr Qassim Sheekh Yusuf revealed during Thursday’s Maansoor Hotel joint-press conference that the ‘Production Sharing Contract’ agreement made with Asante Oil will go before the council of ministers and the country’s parliament for final approval in the coming months.

 

The only other companies to have been licensed by the MW & M who own oil/gas exploration and extraction acreage in Somaliland are the Perth based Ophir Energy, a subsidiary of South Africa’s mighty conglomerate ‘Mvelaphanda Holdings’ and Britain's Prime Resources Ltd.

 

Along with Asante Oil, Ophir Energy and Prime Resources part-funded too last year’s TGS-Nopec’s 2D seismic survey carried out in Somaliland’s offshore/onshore. Both, companies are expected to begin drilling in 2009, according to MW & M.

 

Moreover, unconfirmed sources close to the ministry in Hargeysa disclosed that Ophir Energy, already, has recruited an Australian drilling ‘project manager’ who’d worked extensively in African oil exploration - to deliver its 2009 seismic and drilling program for its acreage in Somaliland. And said Ophir will probably begin its drilling operations 3-4 months ahead of Asante Oil and Prime Resources start their drilling operations in Somaliland next year.

 

The source, who asked not to be quoted, said Asante Oil, Ophir Energy and Prime Resources will definitely all be conducting their drilling programs by the coming year and much of this depends on how well and smooth the coming presidential elections in March 2009 turn out in Somaliland.

 

Asante Oil is made up of Mr. Christian Eidem, chairman and founder is the Norwegian professional footballer Christian Eidem who owns 11% of the equity, while another football personality, Kjetil Siem, is also an investor in it. Siem is a former sports journalist on Norwegian television who has now become an Internet businessman. He had managed the Norwegian club Valegenra until he moved to South Africa last year, taking up the post of CEO of the local Premier Soccer League (PSL) on a three year contract.

 

Jarand Rystad, is chairman of the board of the Oslo based investment fund Zoncolan SA, owns 17% of the Asante Oil capital. Another Asante Oil shareholder is its founder-shareholder Tor Lund, also a London based Norwegian and former head of Statoil Hydro’s Libyan activity and who has also worked in Angola and the Middle East. However, Asante’s leading shareholder, with 40% of the equity, is the fishing magnate Kjell Inge Rokke, the owner of the Aker conglomerate. Dyslexic and considered useless by his teachers when he was at school, Rokke went to make his fortune in the United States (Seattle) by trading in fish. He subsequently went back to Norway where he now owns a yacht and a private Boeing.[1]

[Suldaanka]

Mr. Christian Eidem is founder of Grassroots Soccer an NGO which is active in a number of African countries. If they can bring that NGO into the country that would be a possitive thing for the Somaliland youth.