Mogadishu wants to take control of Puntland's oil and gas

[Tallaabo]

Somalia’s Federal Government Says Regional Oil Permits Invalid

 

 

Tuesday, October 08, 2013

 

 

 

Somalia’s federal government, seeking to reassert control over the war-ravaged country, said oil exploration licenses issued by regional governments in the Somaliland and Puntland regions of country are invalid.

 

Genel Energy Plc (GENL), Africa Oil Corp. (AOI) and Ophir Energy have won licenses to search in Somalia’s semi-autonomous regions, although work has been slowed down by security concerns as the nation has to fight al-Qaeda-linked Al-Shabaab militia.

 

“Any contract that was given or awarded by a federal member state is not valid,” National Resources Minister Abdirizak Omar Mohamed said today at a conference in London. Companies holding those licenses “should start negotiations with the federal government.”

 

Mohamed also urged Royal Dutch Shell Plc (RDSA), Exxon Mobil Corp. (XOM) and other companies that stopped work at the start of the civil war in 1991 to return to Somalia. The nation plans to start seismic exploration next year and hold a tender for licenses after the survey is completed.

 

Although it has no proved reserves, drillers are betting Somalia has geology similar to Yemen across the Gulf of Aden, which split from Africa about 17 million years ago. The Middle East country holds 2.7 billion barrels of proved oil reserves.

 

Shell “has engaged with the government of Somalia -- these discussions are of a preliminary and exploratory nature,” Julia Dudley, a London-based spokesman at the company, said by e-mail. Shell “expressed interest in appraising opportunities for future projects in Somalia.”

 

Federal Control

 

Somalia’s government is working on the new petroleum legislation, including a change to the constitution regarding natural resource ownership, Mohamed said. The nation’s parliament would have to ratify the proposals, which would enforce the federal government’s authority.

 

“Our legal contracts with” Puntland “were subsequently acknowledged and recognized by the Somalia transitional federal government,” Alex Budden, a vice president at Africa Oil, said in an interview in London.

 

The Canadian company last year drilled the nation’s first oil well in at least 20 years. It didn’t find oil or gas reserves.

 

“We are not pushing forward exploration activities,” he said. “We want to see how this situation resolves. We are still able to meet our legal commitments.”

 

Puntland suspended cooperation with the Somalia federal government, partly because of the central authority’s failure to share resources, it said in August.

 

Civil War

 

Eni SpA (ENI), BP Plc (BP/), ConocoPhillips (COP), Chevron Corp. and other companies also had interests in Somalia prior to the civil war. All left the nation because of security concerns. Shell is monitoring “the security and operating environment in and surrounding Somalia,” Dudley said.

 

“We will honour those rights, but we also like to change the terms of their contracts” to production sharing agreements from concessions, Mohamed said. “The country is becoming safer now. We want them to come and explore.”

 

The history of pirate attacks on key shipping routes near Somalia may require increased security for offshore exploration. Still, there were no “successful pirate attack or hijackings” this year, Mohamed said.

 

Soma Oil & Gas, a London-based company started this year, plans to invest about $20 million in the seismic research off Somalia, Chief Executive Officer Robert Sheppard said in London. The company is seeking bids from survey contractors and plans to start the work early next year.

 

“The geologic structure offshore is pretty compelling,” he said. “We are already working with the government and other people to make sure that we have sufficient security for the seismic operations.”

 

http://www.bloomberg.com/news/2013-10-07/somalia-s-federal-government-says-regional-oil-permits-invalid.html

[Tallaabo]

Xasan and his HAG cousins are going to be super rich oil sheikhs thanks to Puntland's and Jubbaland's vast resources;)

[Tillamook]

Yeah, that's if cambuulo was oil...

 

And by the way, the article says the fed gov has invalidated exploration rights issued by Puntland and somaliland. As far as we Jubaland is yet to go down that path, so what's up with the misinformation T?

[Homunculus]

Interesting.... I' surprised by the inclusion of Somaliland in this proclamation, The government in Mogadishu were always skittish in dealing with SL. The SFG can't enforce anything, but they can hinder SL and PL in the exploitation of their resources.

 

 

Again I feel that this is an issue of another minister overstepping his mandate.

[Che -Guevara]

Dear Somalis, the secessionist just wants to stir trouble. Tabs, stop playing with headline and post the article as is.

[Saalax]

Didn't one of the agreements between Somaliland and Somalia in the Turkey was Somalia can never interfere in the

resources of Somaliland? It seems they have broken some of the agreements.

[malistar2012]

 

A new dawn in Somalia , finally we have Government

[uchi]

Why isn't this ***** not going directly to Puntland & SL and discussing this issue?

 

God I hate Somali's sometimes.

[N.O.R.F]

Interesting. This could get messy.

[IsseRiyole]

What Gov? as a True Puntlander we have no business to do with Mogadishu gangs ,they better staty their neck of the wood ,cz they are not welcome to say or mingle Puntland Issues, we are different breed of people ,we don't relate we don't mingle ,stay your corner and leave us alone.

[Mad_Mullah]

A real government that can't leave it's headquarters without Ugandan/Burundi protection

 

Yes that includes Jubbaland.

 

[Cadale]

isku d,ir tactic by the op. isku xishood tallaabo:p

[YoniZ]

I wonder who give advice to this government!

 

How can you tell someone in Hargeisa, contracts (concerning SL regions) signed in the final years of Siad Barre regime ought to be honored without reservation. At the same time, contracts given by the current elected admin in Hargaisa are invalid.

 

Even if Mogadishu and the South are safe and under full control of SFG (which is not). There still should be some respect to the regions avoided chaos and served as safe haven for the fleeing civilians in the past two decades.

 

Unless the above SFG mentality changes, I see no near solution to the chaos.

[ElPunto]

In other federal countries, regions/states control oil resources and make decisions. The federal government gets its cut. These folks have no desire for a real federal government. Nor quite frankly do they have a solid idea what governing really is all about.

[Gheelle.T]

Their (Hassan and co) first one year in office was consumed by the JL debacle and now they are turning their guns at PL. I heard that they were complaining about the reception given to Faroole by the Yemenis and they have filed complain letter to the Yemenis Foreign Ministry. If true, then I would advise them to pile up their office supplies