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Beijing to Roll Out The Red Carpet for Silanyo
December 25, 2010 · 36 Comments
Hargeisa (JMG)-CNOOC is traying to win oil concessions directly from Somaliland after initially negotiating with Somalia’s central government. Which has no say in the breakaway region.
Somaliland president Ahmed Mahamed Silanyo is due to fly to China early in the new year in the wake of a visit to the breakaway region last April by a Chinese delegation that included two offials from the China National Offshore Oil Corp (CNOOC).
The Chinese company wants to pick up acreage in Somaliland where CONOCO identified oil and gas reserves in the 1980s. CNOOC made an initial attempt to debut in the province in 2005 by negotiating a production sharing contract covering the Mudug area in Somaliland with the Transitional Federal Government (TFG) in Mogadishu.
However, the agreement remained a dead letter because Somaliland doesn’t recognize TFG authority.
As a result, CNOOC switched its strategy early this year in favor of making direct contact with authorities in the province. If the company is awarded concessions it will find itself operating in both a legal minefield and an insecure environment.
American companies active in the country until the late 1980s stili believe themselves to be owners of their concessions and consider the acreage has simple been placed under force majeure (NO. 562).
In addiotion. The Somaliland government has no geological data on its subsoil. The results of driiling campaigns in the 2980s have been retained since the early 2000s by a small British concern. Fugro Robertson, which has refused to turn them over to the Somaliland government.
To make up for that lack of information, Somaliland retained TGS Nopec in 2009 to acquire 5.300 KM of Seismic and magnetic data as well as 34,700 km of aeromagnetic data.
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By Abdiqani
Readers Comments (36)
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Our President should also offer the Chinese access to our Berbera Port. The Chinese are already competitiveness against India, Japan and South Korea in the strategic further Gulf Arab oil and sea trade access.
Already the Japanese have established their first ever historical foreign naval base in Djibouti and not since WW2! And in return offering soft-loans (grants), educational and infrastructure development to Djibouti.
Dear bros & sis, lets also not forget Berbera Port and take the opportunity in developing and upgrading our port infrusture. The evidence is there check out recent Chinese development in ports in Pakistan, Sri Lanka, Bangladesh and Myanmar (Burma).
Good suggest NAS, and furthermore, the Chines are the only people who do the job entrusted as good as possible and disciplined. Those USA Oil Companies who claim they have the right to concessions after 20 years should not be listened, because they abandoned Somaliland due to the pressure from OAPEC and their greediness, because they still think that the concession of overall former Somalia will be achieved. Our Government must change the course and deal with China for all energy and infrastructure issues. We don't need those who left us in the cool, and their Arabs masterminders.
Boqoljireh Honestly am not prejudicial against China but man think how your SL is going to
surpass the surrounding berlin wall of the West/Arabs. Just think without recognition SL is in
whirlwinds. So what's needed is how to balance your existence behest these big forces.
That ofcourse needs careful planning and smartness. Wish you good luck.
Cheers.
The SL president's official trip to Beijing and at later dates maybe to the US/UK inorder to sort out
the competitions of the SL Oil Industry developments etc. I would urge that the SL Govts. should
be capable to handle all the various complicated aspects concerning The Chinese and the West
interests etc. If need be I would prefer the BP and Aramco to be the top contenders for the SL Oil
Industry developments. However the SL Govt. should create a local national Company like ADNOC
of the UAE. All agreement arrangements should be exactly like the GCC agreements etc. Since
SL is rich in undeveloped resources the Chinese Indians and all other international companies
including the Arabs could venture for any viable business enterprises.
Cheers.
I am not sure who the source of this article is, but it has erroneous information or it permeates disinformation, perhaps inadvertently. For instance: the article states, “If the company is awarded concessions it will find itself operating in both a legal minefield and an insecure environment.” The fact is Somaliland gained its independence before Somalia’s, so Somalia doesn’t violate the Organization of Africa’s unity chart. That is, Somaliland is simply reverting to its original borders. Hence, any legal bidding concerning the oil concessions will be handled by the Somaliland government. In other words, Somalia has no saying whatsoever.
As for the “insecure environment” the article mentioned, the evidence speaks for itself. Somaliland is far more secure than many nations in Africa and around the world.
But I highly doubted if the oil-hungry Chinese companies would negotiate fairly. Chinese companies are known to build few schools, stadiums, and highways that crumble within few years in order to entice the African countries to award contracts to the Chinese companies. Once, you sign these contracts, there is no way of annulling them; you will stuck with them.
It seems like an article that appeared on African Intelligence. They have alot of misleading information. It's true Silaanyo will fly to China in early January and China is hungry for oil and other minerals.
Silaanyo will also fly to Washington perhaps the US firms will then talk to him as well and try to convince him their case.
What is the source of the above article? Can the writer also please proof read his article before he publishes? "….driiling campaigns in the 2980….? What is that? We are not English, but can we avoid the obvious?
Exactly Ali Dheere, I don't see any benefit from China either, They do everything by them selves they will rarely employ locals, rent facilities from locals.. all they do is exploit public lands and pay some money to the goverment officials… having said that, we should not forget about the western investors who found out these illusive oil in our country in early last century… this could easily intiate foriegn interventions which could possibly lead to tribal wars and internal conflicts which we can not handle at this early stage.
Hassan Kossar
the oil is in sanage and sool region . so it belongs to ssc people. cheers
My family is from the Sanaag and we consider ourself Somalilanders. Always have and always will be.You should also know that both Habar Yonis and Habar Jeclo tribes live in the SSC. In addition, a portion of the Dhulbhante tribe are united with SL. So our resources belong with the people of Somaliland. There is no SSC only PSS (parts of Sool and Sanaag). ONLY speak for what actually belongs to you.
NICE
The Sanaag and Sool Counties or Regions including the parts of (PSS) are Isaak majority
Harti minorities.. Hassan revise your historical knowhow. However since SL have taken the
Western democratcisation systems the future holds exactly like the Western style habitat demographics of
free movements between all the SL Counties/Regions whereas individuals could settle any where within the State depending on their livelihood interests and the stupidities of tribalism used in the wrong direction will become an oblivion back stage and something of the bad past.
Cheers.
Correction: Isaak majorities.
No it belongs to your fathers the SNM never forget that boy did n"t your mother teach you that.
Ayanle kugu xintay SNM bay kaga dhegtay…hadda xalku Snm ma jooge wuxu jooga
J/Somaliland (the SL Republic)…didn't your mom teach you that!.
Your sickness will take you no where..get over it or its gonna make you miserable as always.
Cheers.
thanks to chine for buting red carpet for somalilad prisednt of upcoming
It is my understanding that most of oil is in Sool-near Holhol-that were Conoco, and this Dhulbante. So how can we deal with this issue. And I am sure Chinese do not want repeat the something that had happened in Ogadanania. So, guess my question is does Somaliland Government has solution for this problem. its my understanding using force its never permenent solution.
China never delt with Ogaden region, that was a Malaysian company with Chinese workers. China is aggressive and if there is oil, it will arm the Somaliland army and persue it. No problem, the little SSC militia will be wiped out in hours.
Yes SNM on them that would good so they know that they can not f… with sl.
Sorry if I can't follow yr scripted language style.
Cheers.
Does SNM know that dhulbahante belongs Darood, and they are majority of all #5 somalia
Please, please, please!!!
I think there needs to be basis history lessons to a number of ignorant individuals. Like what one of heroes says "a little knowledge is very dangers"
Lets all be clear….Somaliland and Somalia has NO proven oil reserves. However, leading petroleum geologists have stated that there is potential.
Remember dear bros & sis, in the late 1980's The World Bank had funded, with the backing of the UK, France, USA and even Saudi Arabia (however, the Saudis mysteriously withdrawn their backing) a three year in-depth study of OFF-SHORE oil prospects in Somalia northern coast of the Gulf of Aden AND not on-shore (land) in (the then) Somalia….and present day Somaliland and northern parts of Puntland.
This explains why the World Bank funded research had to Siad Barre granting the vast majority of oil blocks to western and in particular American 'Super Majors'.
To this day we donot know whether there is commercial deposits of oil and gas in our coast (within the boundaries of our EEZ) and in our land. What my advice to fellow Somalis is not to be ignorant about the topic and arrogant about prematurely believing there is billions of barrels of oil!!!
It's my believe that only not much Natural Gas Offshore prospects are in Somalia whereas the rich oil and gas prospects are embeded all over Somaliland in both OFF/On shore. This is no secret. God knows better. Cheers.
The vast majority of area which there is a great potential of oil is the Sool region where most of the Somalis that reside, DON'T surport "Somaliland" . Therefore the chances of the Isaaq tirbe getting money out of off our oil (Dhulbhante) is not nearly impossable. and also i ilke to say i believe that all somalis are the same and we should forget about tribelism however sometimes some peopled on't leave with no chioce.
The thing about China is that we have to be very carefull same with other fooren investors that invest in oil/gas mining sector because unlike other sectors they see more short term and dont give a damn. IF there is oil and gas reservs in Somaliland/Somalia it could be the best thing that could have happen to us but more likely the worst. It's no surprise that the areas of most conflict are those with a lot of natural recorses. If the Somalis cant even unite with no oil/gas how would they react if they knew that there is billions of dollar underneath their feet?
The Chinese don't contribute to the local economi and do not hire ppl. They bring their own work force and live in their own area. In Zambia there is like 80 000 chinese that work in the copper field. If we inteed to neghosiet with the Chinese then by God the government must be strong and have clear goals of what we intend. They have to stay frosty bcz if they hear "we'll give you 2 bilion dollars" and the real valeu would be like more of 100 and say yes like other African leaders then we are finished. The best way is to have multiple competitors that are competing of diffrent lucrative contracts. And not one company that is given the whole contract. The government should impose strict enviremental laws and by God i truly hope that the God given recorses would benefit the poor and not some crazy elite.
Well said Omar. Oil in Somaliland (if found) could be a curse instead of a blessing and Chinese reputation in investment and development in Africa is not impressive. Allah knows best.
I have worked for well known oil company for 24 plus years and those Petroleum Giants or companies who invested and produced at early stage were western companies and no conflect of interest has ever arose. If Somaliland negotiates properly, there is a light at the end of the tunnel, if not we are in trouble. Chines polutte the environment and abstains from recruiting the endigenous people and that is the fact we see in Africa now, but if our government negotiate proper and creates a consortium of experienced group of multy purposes, we can deal with china, otherwise we are in trouble once again. With regards to legal issue, we have already formed in early ninties and team of International Lawers who compiled a very good report succeded to take us out of the high seas and declared Somaliland case is free from any confusion or conflect with the Africa borders and anything else. I have seen a booklet they prepared but unfortunately lost somewhere.
This article is propoganda and misleading just like the so called "somaliland" are dreaming to be independently.
We all know that United Dhulbahante will overpower the Isaaq clan. Also Note,,, Dhulbahante are Darood… the largest clan in Horn of africa.
Dhulbahante means Landlord
Hey Landlord, you are funny. Get a stand up comedy job.
the west is now coming around to the fact that somaliland is a partner it can do business with than that failed state in the south.As for the oil in Sool and Sanaag, the two regions are also inhabited by Isaaq tribe and they will have the final say in how the mineral riches in the areas are best exploited.LONG LIVE SOMALILAND
Please people let’s not be ignorant about this issue of oil & gas in Somaliland/Somalia. To this day there is NO proven reserves of oil in the entire of Somaliland and Somalia!….THAT IS A FACT!
So in the mean time let’s stop being ignorant and arrogant in falsely believing that we have proven oil reserves!!!!
What about sahiil region? I think it has potential gass and oil.
the dervish dhulbahante held the powerful British at for 20 years.isaaqs would be a piece of laxuux lol
"One myth that must be dispelled is that, what was formerly North-Somalia held oil or other natural resources not present in other regions of the former Somali republic. This is simply not true. It was always speculated that Somalia was endowed with natural resources and in particular oil. Though this is probably true, it is most likely that oil will be found in a variety of regions (both the north and south). Moreover, it is likely that significant oil is deposited along the long coastline of Somalia."
Somaliland's oil is near Berbera and two blocks are near Las Anod but they contain small amount. The big one is near Berbera.
A bunch of blah blah blah. I can't believe mentally sane people would be referring the SNMland as a sovereign country. I would advice you guys to voluntarily check yourselves in mental institutions. Weather you like it or not, SOMALIA IS INDIVISIBLE and you will just be dreaming out of stupidity if you think you can give concessions of holhol and the sool region of somalia to foreign governments.