Published On: Sat, May 12th, 2012

Somaliland: Amended production sharing agreements signed

HARGEISA — Somaliland Minister of Mining, Energy and Water Resource Hussein Abdi Dualeh has announced the execution of an amendment to the production sharing Agreement (PSA) with Ophir Energy plc (Ophir) and Ras al Khaimah Gas company LLC (RAKGAS), for the exploration of Block SL9 and SL12 respectively.

The Amendment includes the awarding of additional acreage to Ophir and RAKGAS in lieu of signature bonus, the payments of surface rent, a participating interest and an improved work program.

Speaking during the signing ceremony Mr. Dualeh said, “we are pleased to continue our partnership with OPHIR as we look to develop the oil and gas industry in Somaliland and we are looking forward for future cooperation.”

Calling it a “highly prospective and unexplored region” Jeff Clarke, Ophir representative, welcomed the deal saying his company was pleased to be working with the Somaliland government and RAKGAS.

The company (OPHIR) had earlier conducted and acquired 2D seismic data offshore after completing an Aeromagnetic survey onshore in Q1 2008. The group says they will complete and process a further 750KM of 2D data as they commence towards drilling in Somaliland.


Established in 1984 RAK Gas LLC is the state natural gas utility of the Emirate of Ras al Khaimah in the UAE.

Ophir Energy plc was founded in 2004 in the UK and is the incorporated holding company of a group of companies with oil and gas exploration assets in a number of African states.

Goth Mohamed Goth


May 12, 2012

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  1. osman5 says:

    As it looks oil exploration prospective in Somaliland is interesting getting very interesting.
    I'm under the impression the government of Somaliland is granting more land to foreign firms in lieu of bonus that isn't smart way of conducting business. Numbers are not adding up in my books..I've got the feeling there's a snake in the grass.

    The thing, if is these firms have already signed a contractual agreement for exploring oil in Somaliland, thus, they have no choice but to complete the the 3D data follow by drilling as everything else gets ironed out..
    Why are they asking fore more land before they submitted the 3d data? how would you be able to stop them if they decide to ask an additional land in the future, when they see an actual oil and the normal greed gets kicked in? we shouldn't be showing them any sort of flexible..that's my point..

    Somalilander government has to stand on a firm ground and let these gougers finish up what they started then allow them to renegotiate if the feasibility studies are promising.

    Osman Qaal

  2. mohamed cheers says:

    All I can think of initially, with Somaliland still struggling to be fully recognized as Sovereignty
    Republic, I can only think that the Somaliland Minister for Mining,Energy and Water really should be well equipped with the necessary expertise and full knowledge and experience of how big Oil Companies deal with contractual business agreements of this nature and magnitudes? I dont know much about these small Oil Companies and would rather focus towards big Oil Companies. I think the ways the GCC Oil & Gas was conducted is, in my view, the best shots for all the wouldbe joint ventures.

  3. Kayse says:

    You can sign all the papers in China`s paper factories but they mean nothing, nada, waxna, till this coutry sees real oil

  4. Dhugtame says:

    Everything boils down to negotiating skillfully and seeking legal and oil expertise where it is lacking. We must not sell ourselves cheap whether to oil company or Djibouti.

  5. Ahmed Dhegaweyne says:

    "Awarding of additional acreage to Ophir and RAKGAS" While we haven't seen any boots on the ground, is nothing more than selfish landholding. I would like to see wheels in motion and active operational work on the formerly awarded areas with equipment and staff employed. There should be time line as to when the drilling should start. No more land rights unless substantial results are seen.

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