Genel Energy’s Departure From Somaliland And The Reasons Behind It

[Carafaat]

September 8th, 2013 Comments Off

 

London (Somaliland.Org) Genel Energy, which has been conducting oil exploration work in Somaliland for the past 18 months has stopped all its work and left the country. There has not been any official announcement from either Genel Energy or the Somaliland government in relation to this sudden development. However, all the contractors and workers of Genel Energy have been informed that the work has stopped and that all their contracts have been terminated. More seriously, all expatriate Genel staff and management have been ordered to leave Somaliland, according to people close to both the Somaliland government and Genel Energy.

 

Genel Energy was due to start the first phase of a major exploration work within the next ten days and all the preparations have been concluded, according to government officials who did not wish to be named, as they were not authorised to discuss the matter.

 

The company has cited security as the reason for leaving Somaliland, however, this has been disputed by different government officials and security experts. Somaliland security officials stated that there have been security issues in the past and that Genel has worked together with Somaliland and British security services, who fund and train Somaliland security officials, each time an issue arose, and the problems were resolved. On this occasion, however, the security officials stated that neither they or their British counterparts are aware of any security threats.

 

A high ranking government official stated that Genel Energy’s reason for halting its operations and leaving the country are political and not security. ‘Genel Energy is in breach of its contract with the Somaliland government and it has chosen to align itself with Somaliland’s detractors. The government is looking into the matter and will take whatever appropriate actions that’s necessary, and will ensure that, be it now or in future, those companies that behave in this manner will not be able to benefit from their actions’ added this official.

 

‘If certain countries think that Somaliland can be forced to reunite with Somalia through economic pressure, they are ill informed. They do not know the Somaliland people’ said an expert on Horn of Africa Mr Ali Saleh, who argued that Genel Energy’s sudden and surprise departure was due to external political pressure. Mr Salah went on to say that the most likely source of the pressure on Genel Energy was the British government in conjunction with the Somalia interim government. ‘They want to force Somaliland to its knees through political and economic pressure, so that it accepts the British led road map for Somalia.

 

Most government officials refused to go on the record discussing this matter, however, when we asked an official from the President’s office if there have been external pressure on the company to leave Somaliland. He stated: ‘There have been ongoing Somalia-Somaliland talks in different countries, mainly Britain and Turkey. There have also been conferences aimed towards restating peace in Somalia. The government of Somaliland attended the bilateral talks, never the less, refused to take part in certain conferences and initiatives for Somalia. This has upset some countries’ said the official. He added that Genel Energy is joint owned by Turkish and British investors, the two principal coordinators of the Somalia efforts. And this latest incident is against the agreements that were reached in turkey, therefore, Somaliland will have to reconsider its further participation in these talks.

 

Another senior government official who refused to be identified, as per regulation, stated that Somaliland has been through this before, mainly from Arab countries, when they sanctioned the export of Somaliland’s life stock and that did not achieve its purpose. Therefore, this latest effort will also fail.

 

When asked what action Somaliland will take in response, the senior official stated that they will reconsider their continued participation in the Somalia-Somaliland dialogue. He added: “We might also look to China, Russia or Iran or some of these other knowledgeable and resourceful countries to assist us in exploring our energy sector” concluded the senior officer.

 

© Somaliland.Org 2013

[Carafaat]

Somaliland Oo Shaacisay Inaanay Nabad-gelyo Xumo darteed Genel Energy uga baxin Dalka

September 7th, 2013 Comments Off

 

 

HARGEYSA (Somaliland.Org)-Wasiirka Arrimaha Gudaha Mudane Cali Maxamed Waran-cadde ayaa sheegay inaanay shirkadda shiidaalka ka baadhaysay goboladda barri ee dalka ee Genel Energy aanay Somaliland uga bixin culays iyo turaan-turooyin kaga yimid dalka gudihiisa.

 

Wasiirku waxa uu sidaasi ka sheegay maanta oo uu hortagay Golaha Wakiiladda Somaliland oo ansixiyay Wasiirnimadiisa.

 

“Arrinta shirkadaasi ma aha mid ka timid xaggeena (Somaliland), nabad-gelyo xumo Somaliland ka timidna ma aha. Shan cisho ka hor waxaan tagay Burco tuulooyin bay ka cawdeen xaga shaqaale hoosaadka ka cabanayay, arrintaasna si wanaagsan ayaanu u dhammaynay oo mabsuudna way ahayd shirkaddu,”ayuu yidhi Wasiir Waran-cadde oo wax laga weydiiyay inuu ka war-bixiyo asbaabaha dhaliyay in shirkadda Genel Energy ay shaqaalaheeda Ajanabiga ah kala baxdo Somaliland.

 

Mr. Cali-Waran-cadde waxa uu tilmaamay in aanay jirin wax sabab ah oo ay u daliishan karto inay nabad-gelyo xumo uga baxday dalka, hase yeeshee waxa uu ku dooday inay xukuumadda uu ka tirsan yahay ay masuuliyiinta shirkadda Genel Energy wax ka weydiinayaan Axadda Beri waxyaabaha ku aj-buray qaraar ay ku gaadheen inay shaqaalahooda ajanabiga ah ee hawsha sahaminta shiidaalka laf-dhabarta u ahaa ay kala baxaan Somaliland.

 

Wasiirka daakhiligu waxa uu iftiimiyay inay beesha caalamku ay ku sii qul-qulayso Soomaaliya oo aanay ka jirin nabad-gelyo isla markaana la baaxaa-degaysa qaraxyo aragagixiso.

 

Cumar Maxamed Faarax

Somaliland.Org/Hargeysa

cumarmfaarax@hotmail.com

[YoniZ]

Carafaat;976607 wrote:

September 8th, 2013 Comments Off

 

Somaliland security officials stated that there have been security issues in the past and that Genel has worked together with Somaliland and

British security services, who fund and train Somaliland security officials, each time an issue arose, and the problems were resolved. On this occasion, however, the security officials stated that neither they or their British counterparts are aware of any security threats.

 

‘If certain countries think that Somaliland can be forced to reunite with Somalia through economic pressure, they are ill informed. They do not know the Somaliland people’ said an expert on Horn of Africa Mr Ali Saleh, who argued that Genel Energy’s sudden and surprise departure was due to external political pressure. Mr Salah went on to say that

the most likely source of the pressure on Genel Energy was the British government in conjunction with the Somalia interim government. ‘They want to force Somaliland to its knees through political and economic pressure, so that it accepts the British led road map for Somalia.

How do you explain the above contraditions!

[Somalia]

Blaming lack of security in the volatile Oodweyne region of the self-proclaimed Somaliland region (where clans fight over desert land) on His Excellency President Hasan Sheikh Mahamud and the Republic of Turkey will get you nowhere.

 

I believe Somaliland must address the core issues here; internal tribal warfare, lack of political consensus and low security. Today the local town of Burao is demarcated with two clans on each side of town. Early this month an uneasy truce was reached between elders, lets hope they can manage to preserve the peace necessary for the Somaliland people to grow.

[GAROODI]

^^^^

 

As long as oil is beneath our feet and not water it will be a safe deposit bank for the people this is the 21st century there is no shortage of buyers given we have the product. The percentage share between the government and company was never disclosed. We could get a better offer In the future.in the mean time continue to increase budget year on year. The Somalilander leading the venture with ganel energy could also go solo. If Rockafella could do it almost a hundred years ago why can't private investment in SOMALILAND today.

[Che -Guevara]

Mogadishu is a bogeyman for some in Northern Somalia. This is internal politics and nothing to do with Xamar.

 

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[Mad_Mullah]

Is it a fact that Somaliland has oil? I thought these companies were there to see if they did?

[Suldaanka]

What I am hearing is different. I hear that there is a dispute and Hirsi is in the middle of it. He is meddling in the operational affairs of the team.

[Carafaat]

Che -Guevara;976637 wrote:

Mogadishu is a bogeyman for some in Northern Somalia. This is internal politics and nothing to do with Xamar.

 

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If you listen to the public reactions in this video, most folks are emphasizing the need for more transparency, strengthening good governance and creating more public awareness before/when entering into accords with foreign companies. Irrelevant if this withdrawal is caused by external or internal pressure on the company.

[Carafaat]

Could this withdrawal have anything to do with the recent exploration contract that Somalia's government awarded an to another UK company?

 

 

Somalia allows UK company to explore for oil and gas

 

By NEVILLE OTUKI

 

Posted Tuesday, August 6 2013 at 20:09

 

The deal with Soma Oil and Gas Exploration Ltd did not specify the area of exploration.

 

The government described the move to award the contract as strategic. Autonomous Puntland has previously issued similar licences.

 

Somalia on Monday granted a UK-based oil company rights to explore oil and gas in a move that could intensify competition with Kenya in the Indian Ocean area.

 

The deal with Soma Oil and Gas Exploration Ltd did not specify the area of exploration. Sona chairman Michael Horward was former Conservative Party leader and Home Secretary.

 

“Under the agreement the company will conduct seismic surveying to assist the development of Somalia’s hydrocarbons sector,” reads part of the announcement sent to newsrooms by Somalia authorities.

 

The government described the move to award the contract as strategic. Autonomous Puntland has previously issued similar licences.“The agreement reflects the strength of the relationship between Somalia and the United Kingdom,” read the statement.

 

An oil find is likely to complicate Somalia’s political situation as regional factions and states are also eyeing stakes in the sector. In a July UN report to the Security Council’s sanctions on Somalia and Eritrea it was observed that Somalia’s constitution gives considerable autonomy to regional governments to enter oil deals.

 

Federal officials, however, argue that only the central government can distribute natural resources

.

[Carafaat]

It seems the battle between the oil giants for our natural resources has started.

 

Somalia deal raises concerns about oil risks

 

http://www.ft.com/intl/cms/s/0/b9fd1418-034d-11e3-b871-00144feab7de.html#axzz2eMB1wma2

 

The signing of the new Somali government’s first oil contract with an untested company linked to a British peer raises concerns about whether the dash for oil wealth will destabilise the east African country.

Last week, Michael Howard, a former leader of Britain’s ruling Conservative party and chairman of Soma Oil and Gas Exploration , signed a contract in Somalia with Mogadishu to collect data on onshore and offshore oil . It was the first such contract by any international company.

In exchange for collecting data, Soma has the right to apply for up to 12 oil blocks in an area seen by oil majors as one of the final frontiers for the commodity. The company, which has not undertaken a seismic survey before, was incorporated in the UK last month with capital of £0.001.

 

“We have looked [at] the contract from the perspective of what’s good for Somalia,” said Abdirizak Omar Mohamed, Somalia’s natural resources minister. The newly formed government of which he is a member is the first Mogadishu administration to gain international recogntion in decades.

 

“This investment is going to be very good for the country and we’re hoping that other investors come too,” he said. “These are people . . . who have expertise in the area of oil and gas, and people who are well respected in the UK.”

The Mogadishu government had said in May that it would not sign any oil deals until contradictions within the legal framework were ironed out. It has yet to do this, but the minister said they intended to do so.

“I do not think this deal was done transparently at all,” said Abdillahi Mohamud at the East African Energy Forum, a lobby group consulted by Somali parliamentarians who are considering their reaction to the deal.

 

Despite the threats from Islamist militants, the Somali capital is bursting back to life. As the UK, Norway, Turkey, Qatar and others vie to gain influence in Somalia’s oil-rich waters, analysts fear big-power oil politics could put its fragile recovery off course. A UN panel of experts cautioned in a report last month that oil could lead to conflict between rival groups – some of which have previously been allied to al-Qaeda-affiliated jihadists – and threaten peace.

“[Oil] companies should cease and desist negotiations with Somali authorities,” the UN panel said in last month’s report to the Security Council. Mr Abdillahi sees the deal in the context of regional politics. “This [the deal] is about . . .[the central government] attempting to gain the upper hand namely on [the regions],” says Mr Abdillahi. He believes there may be “many hidden agendas” and believes the deal is “political in nature”.

 

The deal has unsettled some industry observers who had expected a public licensing round for all the oil blocks.

Other more experienced companies had also been queueing up for contracts to undertake surveys. They say it is unusual for Soma, once it has gathered the data, to be able to cherry-pick the best dozen blocks.

 

Some oil majors, including Shell and Total, have put their claims to oil blocks they signed for in the late 1980s

on ice until, Shell says, “conditions allow”. Soma says it will not impinge on their areas, nor on territories that do not acknowledge the Mogadishu government, such as Somaliland and Puntland. Soma’s management can draw on an “absolutely unrivalled track record”, Lord Howard said in an interview with the Financial Times, pointing to Soma chief executive Robert Sheppard, an adviser to BP in Russia. The company can also easily raise the money, he said.

 

“I think our agreement is very much in the interests of the people of Somalia,” he said. Asked about the preferential access to the oil blocks in return for the geological databank, Lord Howard said it is “obvious . . . that we should have a quid pro quo”.

The deal has prompted some concern from the UK’s diplomatic partners about the UK’s relationship with Somalia. Mark Simmonds, UK Africa minister, hosted a government-sponsored investment event on May 8, in which the Somali president and 16 UK energy companies

, including Lord Howard’s, took part. Senior UK civil servants also met Lord Howard on June 7 to discuss Somalia.

 

“The UK is promoting transparent and accountable government [but it] hosted a conference and invited all of us,” said a diplomat who follows Somalia closely. “Then that momentum was used to promote British business interests: that could maybe have been more transparent.” Mr Sheppard, Soma chief executive, said he didn’t know “why they’ve [the government] accepted it now when earlier they might not have”.

 

Both sides had independent legal advice and Lord Howard said that he “went to some lengths to impress on the Somali government that it was very important that they had independent legal advice”.

He added that he had checked with the UK government to ensure he was doing nothing against UK policy. “I don’t think I’m there for any political influence, I don’t think I have any political influence any longer,” he said. But the reason the deal went ahead “may well be because of the leading role that the UK government has taken that [the Somali government] were well disposed towards a British company”

[N.O.R.F]

The information filtering through is that Genel made the decision to ‘evacuate’ it’s staff. This was taken unilaterally with no consultation with the Somaliland government. It is rumoured that one of the reasons for this sudden move out of the country could be an internal dispute between Genel and those it subcontracted to do the exploration.

 

The government has sought clarification from Genel and the issue of political influence from outside hasn’t been ruled out.

 

This has nothing to do with the locals or any perceived lack of agreement with them. Agreements were made with the locals in June and July. Everything was going according to plan with the camp set up, people moving out there, deliveries of water and diesel starting last week.

 

I’m sure we will hear more soon.

[Dr_Osman]

This was never going to happen and if any of you thought it was then your totally silly. This just like that other garbage project somcable. It's been sent where it belongs the BIN. It's just another failed project

[Wiil Cusub]

Genel Pulls Out Somaliland Staff

Move Follows Twin Bombings in the Capital, Mogadishu

 

Anglo-Turkish oil company Genel Energy has started pulling its employees out of northern Somalia following a sudden spike in violence.

 

By Justin Scheck, Alexis Flynn

 

ANKARA — Anglo-Turkish oil company Genel Energy PLC has started pulling its employees out of northern Somalia following a sudden spike in violence in the volatile Horn of Africa nation, the company said Monday.

 

“In the face of a deteriorating security situation we are temporarily suspending our seismic operations,” said a Genel spokesman.

 

Somaliland authorities weren’t immediately available for comment.

 

Genel’s decision to halt its early-stage oil exploration campaign in Somaliland, a breakaway northern region noted for its relative stability, comes in the wake of a twin bombing Saturday in Mogadishu that killed 20 people.

 

A car bomb and a suicide attacker struck a restaurant in Somalia’s capital in the worst violence since an assault on a United Nations compound in June. The Somali militant group al-Shabaab, which has struck Mogadishu multiple times in recent months, claimed responsibility for the attack.

 

Helmed by former BP PLC Chief Executive Tony Hayward, London-listed Genel began prospecting for oil in Somaliland after acquiring a set of licenses in the area last year.

 

It doesn’t produce any crude oil in Somaliland, whose decision to grant exploration rights to companies like Genel has incurred the wrath of Somalia’s recently elected central government.

 

Mogadishu maintains that any licensing of oil exploration is the sole responsibility of the federal government. However, Somaliland — which built up a degree of autonomy during two decades of civil war — says that it has the right to attract investment in the areas that it controls.

 

source Wall Street Journal - ‎

[Wiil Cusub]

Dr_Osman;976698 wrote:

This was never going to happen and if any of you thought it was then your totally silly. This just like that other garbage project somcable. It's been sent where it belongs the BIN. It's just another failed project

Whole Somali projects are silly sins Alshayadiins are in the corner and society is divided in to tribal lines.

 

Diktoore if you are happy with this effect is not limit on SL