Unbelievable negotiation by Somaliland!

[Somalia]

Sadly, it would appear that there is a real danger that it will be others who benefit from Somaliland’s oil and gas. A case in point is that of Block M10A and 35 “Berbera Block” in Guban Basin (an area of 16,270km2), the licence in this particular case states that London registered

Ophir Energy as the Operator has a 75% interest, Ras Al Khaimah Gas Company (RAKgas) (JV Party) 22.5% and the Government of Somaliland 2.5%.

 

http://somalilandpress.com/2-5-has-ophir-energy-got-somaliland-over-a-barrel-24623

 

2.5%!

 

I thought Puntland's negotiation was flawed but what on EARTH is this?

[Valenteenah.]

Maybe it's a typo.

[Somalia]

Of coouurse it is, of course, yes yes, of course..

 

[NGONGE]

Can't be a typo, Val. The numbers add up. Fi shay!

[Valenteenah.]

Maths and negotiating lessons are due markaas. Way u dhacday Ophir Energy.

[Siciid1986]

This results from the previous government.

 

 

Ophir Energy and Dahir Rayaale

 

In April 2003, Rova Energy Corporation Limited (Rova) entered into the Berbera Production Sharing Agreement (Berbera PSA) with the Government of Somaliland. Rova was a special purpose company established to acquire and develop the Berbera PSA. In return for providing early funding, Mvelaphanda was awarded an option to acquire 75% of the issued share capital of Rova. The remaining 25% was held by a private individual. Ophir acquired this option from Mvelaphanda in October 2004 and in March 2005 exercised its option to acquire 75% of Rova. In February 2007, Ophir and the private individual agreed to exchange Ophir’s shareholding in Rova for a direct interest in the Berbera PSA. This was subsequently ratified by the Government in March 2007 (with the transaction completing in May 2007). Ophir then became a direct participant in the Berbera PSA holding an interest of 75% and is the designated operator.

 

In 2008 Rova agreed to sell its 25% interest in the Berbera PSA to UAE based Ras Al Khaimah Gas Company (RAKgas). Ophir and RAKgas currently participate in the Berbera PSA through a joint venture governed by a Joint Operating Agreement (JOA).

The Berbera PSA originally consisted of four sub-blocks that were designated as 35/36 (onshore) and M10/M10A (offshore). In 2006, the Group elected to maintain the 35 (onshore) and M10A (offshore) sub-blocks and relinquish 36 and M10.

Only three wells have been drilled in the original Berbera Block, two of which were located offshore in block M10, where they encountered minor oil shows. The third well, the only onshore well in the block, was a 243m deep stratigraphic well. Three wells, drilled adjacent to the western edge of block 35 (Dagah Shabel 1-2-3) over the period from November 1958 to November 1959, all encountered good oil shows. The M10A/35 PSA, located in northern Somaliland, is predominantly onshore but also extends offshore into the Gulf of Aden. The block encompasses an area of 16,270km2 with a water depth of approximately 0 to 1,000m

[Somalia]

^ Those looks better.

 

The ones I posted are new agreements and so it looks to me Silaanyo is a better negotiator.

[omar12]

Somaliland should wait till the goods appear, then nationalize everything

[Qandalawi]

^Boy that's not how the world works and no one is too damb to take that shit. Unless you are mad dictator that want to lead a rogue state.

[omar12]

haha i know, but it would be funny to see.

[Naxar Nugaaleed]

I mean with the numbers posted here, that best thing might just be to "nationalize" after discovery especially after an election just for cover. seriously though, the people who would sign an agreement like that should be take to the back and shot

[omar12]

thank you! in the international stage somalilands reputation would get a black eye. But my god 2.5% is humiliating.

[Abdul]

Do they have a reputation?