Somaliland to drill for oil in 2014 The Telegraph

[GAROODI]

Somalilandsun - Genel Energy reported progress on a number of fronts yesterday, with a "substantial" rise in oil output expected next year.

Genel, run by former BP chief executive Tony Hayward, is the largest oil producer in the Kurdish semi-autonomous region of Iraq.

It also has exploration acreage in Morocco, Malta and Somaliland, with drilling expected to start in the final quarter of this year.

The interim figures were in line with City expectations. Revenues in the six months to June rose 30pc to $160.6m (£106m) and pre-tax profit soared to $109.1m from $22.3m. However, the profit figure was flattered by a $54.5m one-off accounting credit after changes in the way depreciation was measured. When this is stripped out, profits rose 148pc. The group still has a net cash position of $867m and Julian Metherell, finance director, raised the possibility of a dividend next year.

The Kurdish Regional Government (KRG) has been in dispute with Iraq over revenue sharing on oil produced in the region. Genel has been trucking oil out to Turkey because the Iraqi central government has banned exports through a Baghdad-owned pipeline.

However, a pipeline built by the KRG is now just 15km from the Turkish border. Genel is likely to be granted export capacity though the pipeline by the KRG and this will allow for the efficient export of oil.

Oil production is expected to rise to between 45,000 barrels and 55,000 barrels of oil equivalent a day for the full year from 44,500 barrels in 2012. The company says this will generate revenue of between $300m and $400m.

Genel has had substantial exploration success this year and has added about 500m barrels of contingent resources. There is also a potential gas deal between Turkey and the KRG which would boost Genel following significant gas discoveries in the first half.

Yesterday Genel raised its estimates for its gas reserves at the 100pc-owned Miran and 44pc-owned Bina Bawi fields to between 8 trillion and 14 trillion cubic feet. Talks are in progress about an export deal that would see the KRG supplying up to 25pc of Turkey's gas requirements.

The exploration programme in Africa starts in the fourth quarter in Morocco, with drilling in Malta expected in the first quarter of 2014.

Most of the world's easy oil has been discovered and oil companies are looking to under-explored areas for new reserves. Next year, Genel will drill its first well in Somaliland, the breakaway East African territory that declared independence from Somalia more than 20 years ago after a bloody civil war. There is talk that the geology in the country is similar to that of Yemen, where oil money generates 75pc of government revenGenel oil blocks in somalilandues.

For obvious reasons, Somaliland is under-explored with little activity since the oil majors left in the 1980s. This means there is a good chance of finding oil. However, the fun will really start following any discovery. Somalia is likely to want a slice of the revenues so thrashing out an agreement may be challenging.

Political difficulties appear to be getting resolved and a gas agreement between Turkey and the KRG will be very positive for Genel following recent gas finds. Diversification away from the KRG is welcome and the company's balance sheet remains robust. The shares are trading on a 2013 earnings multiple of 31.5 but this falls to 15.2 in 2014 and then just 9.8. Questor keeps a buy.

[GAROODI]

Heard the pirate head saying bacaaaaaaac the other day.

 

"Somaliland is creating conflict in the region. Somaliland cannot give land to foreign companies to explore oil when the land does not belong to Somaliland," he said or in other words "we found water in our 2 state region so pretty please don't take out petrol because we would continue to lose" lool. Pirates are lucky to have two states left if they move the somaliland flag will fly over Garowe and bosaso. Both are 20 odd miles away from the somaliland border.

 

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[Dr_Osman]

Typical garoodi doing a ku dayo on puntland but then posts a video from 6 years ago to distract people at the huge copying happening AGAIN. When will it end Garoodi, when will your pedofile region stopped the copying and do something that is unique on they're own.

 

First it was the petroleum, then the golaha samatabixinta, then hargaysa all of a sudden deciding lets build a road right after Bosaso completed a few and now the sanad gurrads mimicking puntland to the T and even doing the puntland army war cry.

 

When will your pedofile region end this facade and be themselves and not try comparing itself to whatever Puntland does. Garoodi, you need to stop copying Puntland and do something that is ingenious for yourself and your region. Puntland is going to be opening up soon a car manufacturing plant(rumours i am hearing in suuqyada), I hope your childish region doesn't do a ku dayo on it.

[GAROODI]

^^^ if you say so Osman haha

[Dr_Osman]

Garoodi, Puntland is two states? lol. Even after the UNFPA told you, that Puntland is more populous, your still referring to Puntland as a small clan. Your just being childish as usual and throwing a rant because you can't accept the truth.

 

Puntland is 4.5 million people and Somaliland is 2 million, and you have the audacity to talk about population when your known by all somalis as the smallest. Let me tell you if Puntland is wasteland why is it we are now agriculturally no longer depedent on anywhere besides Puntland. Its your region who still exports from ethiopia. So who is the wasteland me or you adeer macaane

[GAROODI]

Lol @ adeer macaane. Bari is a desert wasteland you have to be blind not to see that. Other then Bari and nugaal and parts of mudug what does your state control? Nothing. It's no longer in eat Sanag or east sool. As for being self suffient as far as I am aware they still live off fish in Bari never heard of vegetables since they ran from mugdisho