Business
Somaliland Expects Agreement With Ophir Energy ‘Within Weeks’
November 25, 2011 · 23 Comments
Somaliland, the semi-autonomous region in northern Somalia, expects to conclude a project- sharing agreement with Ophir Energy Plc, amid efforts to develop the territory’s potential oil deposits, an official said.
The accord is currently being approved by Somaliland’s Council of Ministers and will be followed by the granting of approval to begin seismic surveys, Mining, Energy and Water Resources Minister Hussein Abdi Dualeh said in an interview.
“The process should be finalised within a few weeks,” Dualeh said by phone from Hargeisa, the capital, today.
Somaliland announced earlier this month that it will abandon efforts to reengage investors who left more than two decades ago at the outbreak of civil war in Somalia. Instead, the region initiated an “open door policy”, inviting potential investors to approach the government about onshore and offshore oil exploration. Tullow Oil Plc, the London-based explorer with the most licenses in Africa, expressed an interest in a licence and “indicated that they plan to visit Somaliland,” Dualeh said.
Tullow officials are due to arrive in the country on Nov. 28 for further talks, he said.
Ophir, along with companies including U.K.-based Asante Oil and Prime Resources, hold exploration licenses that have been issued since 2003. Ophir is expected to complete seismic surveys by May 2013, Dualeh said.
“Once this is done, we expect to them to go to the next exploration period, which would require Ophir to drill some wells,” he said.
Independence
Somaliland’s previous attempts to encourage exploration in the region foundered because of perceptions among investors that the country has the same security concerns as Somalia. The former British colony declared independence from Somalia in 1991, following the ouster of former Somali dictator Mohammed Siad Barre. No sovereign state has formally recognized the area as independent.
Investor concerns about security are misplaced, said Hassan Mohamoud, a spokesman for Asante Oil, which has a staffed office in Hargeisa.
“The communities are aware of the benefits that come with oil and they are the ones inviting companies to explore,” Mohamoud said in an interview yesterday. “The risk is minimal.”
Source:Bloomberg
Email this story
By Mo Guled
Tags: Ophir Energy, Somaliland, Somaliland Gas projects, Somalilandpress
Readers Comments (23)
Somaliland
Somaliland: Grand Opening for a New State of The Art Coca Cola Bottling Plant In Hargeisa
Hargeisa-President Ahmed Mohamed Mohamud (silanyo) today cut the ribbon to a new modern beverage production plant which is owned by Coca Cola Company ...
Somaliland-Ethiopia Relationship
Overpowering Gratitude Vs Vexing Misgivings By Ahmed I. Hassan Author’s Note: This is the chapter on Somaliland-Ethiopia Relationship in a book titled “Somaliland: The Legacies of Non-Recognition” which ...
SOMALIA: Turkish Airlines diverts to Nairobi after security scare in Mogadishu
MOGADISHU — A carrier operated by Turkish Airlines left its Somali passengers stranded in the wrong airport after landing in Kenya rather than their intended ...
UN envoy in Somalia concerned over violent clashes in Hargeisa
Photo: Special Representative Augustine Mahiga (UN Photo/Stuart Price) NAIROBI — The United Nations envoy in Somalia, Augustine P. Mahiga, today expressed concern over recent violent clashes ...
SOMALILAND: President urges citizens to uphold peace and stability
HARGEISA — The Somaliland National Independence day celebrations that was widely marked within and outside the country, had an added flavor when the State House grounds witnessed ...
Your Say
IN MEMORY OF DR. ABDISHAKUR JOWHAR – FRANZ FANON OF THE SOMALI PEOPLE*
BY BASHIR GOTH “He lit up a room. If you can imagine the sun, his face was like the sun, that smile, the arm around ...
- Somaliland media: Spreading the word
- SOMALILAND: Where is the Justice in our Justice System?
- Unionist are Dead — Long Live SOMALILAND
- Apprehending Ratco Mladic: a reminder of a war criminal working as jury
- Dr Jowhar: We lost a friend, a Hero
- GEESI LOO HANWEYNAA – A tribute to my hero Dr. Jowhar
- 10 Years after Timor’s Independence, Where Is the Justice?
- Why Hiil Qaran Party Will Not Have a Significant Impact on the Politics of Somalia
- Sunday 20 May: Join in Commemorating late Dr Jowhar
- Qurbomeer State should stop smearing the reputation of Lula A Osman
Somalia: Federalism, Division and The Dual Track Policy
OPINION | MAY 20, 2012 Photo: Alternative to federalism and Somaliland/Somalia ideology – the three branch Somalia (three branches of government in three different parts of ...
Somaliland National day – for the sake of a decent life and principle of the future
OPINION | May 18, 2012 By Abdirahman Maeeg In a wonderful day like this day, our talk should have significance from a different angle; it is an ...
Somaliland, the semi-autonomous region of Somalia…perhaps the source bloomberg is mixed up
between Somaliland Republic and semi-autonomous Puntland of Somalia. Something is fishy here.
Cheers.
Bloomberg is good source and the least biased American media house. All the others are useless and it is for this reason that millions are turning to media like Al Jazeera, Bloomberg (business/finance) and even other foreign owned media including Press TV which is now banned by Western nations because they hate the truth and they tell African leaders "we will give you little expired food aid if you give more freedom to the press". Thats the new West, they cant take the pressure, they know they are history.
Somaliland should be talking to Chinese firms about oil deals, these Western firms have been in that region for 3 decades and have not turned a stone. Just like their ageing media, their all in debt crisis and financial hardship.
Somaliland needs to turn this ship around and follow the path of the great Zheng He aka Mohamed Shamsudin (the Muslim Chinese explorer/diplomat/admiral).
I am telling you the Somaliland leaders are old school and they just going in a circle around streets where they use to collect welfare while being a refugee in the West. We need fearless leaders who steer this young and undiscovered nation into new waters…we need explorers, innovators, not the same old story.
They have been saying the same thing for the past two decades (some useless Western firm will sign deal, drill, bla bla bla).
The Chinese will come, survey and drill all within five months.
@kayse
Give Somaliland a break. Your ideas are becoming absolutely nonsense. No body said anything bad about
Bloomberg. Your twisted ideas are no longer sustainable in how the Govt. of President Silaanyo conducts
its International affairs. Who you think you are kidding. The good news is, although President Silaanyo
took off for an unofficial trip to London yet official meetings with the British FCO Club have briefed the
President Silaanyo and his team Cabinet Ministers about the newly joint venture Company called
the Somaliland development corporation(SDC) similar to the Adnoc of the U.A.E. which will be managed
jointly from London being the HQ of the new Company. Therefore Kayse save your funny ideas.
Certainly Somaliland is not ready for such twisted ideas.
Cheers.
Mohammed@
1. I think you are the one who needs a good look in the mirror Kayse are absolutely right. You are saying just because west do 1 or few things good years of oppression, colonization, slave trade and hundreds of proxy wars are all fake propaganda. You may have not said this but the way your response to Kayse was basically pro west anti rest..
2. In what way did Kayse say something that you said was nonsense wallahi i will pray for you bcz everything he said true. If you had opened eyes that is.
3. Why did you attack his character he didn't say anything bad about you? (but i stand for this)
and yet you think you are all high and mighty and using a Technic that i cant translate into English (lost in translation) but basically means your ridiculing him to make your self look better and make people think he is stupid. But Allah wont forget so you know next time!
4.The ceo's of the African development bank said that China is more productive for Africa and African countries if they want something seriously benefit them they will turn to China and not West. Look at how the Chinese transformed Addis Ababa 900 km of paved roads. I think the words of leaders in Afdb ways a lot more. The Chinese have don't more for Africa the last years then west the last 50 years. The Chinese wants the resources i am not stupid but at least we benefit from it. And they improve our infrastructure in Africa.
5. Take a look at this video from the world bank talks about infrastructure transformation for Africa how important that is.
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIE…
AND I URGE EVERY MUSLIM TO LOOK AT THIS VIDEO!!!!
Because if you don't understand what is really happening and how we as a people must wake up these EVIL people are mentioned in the Holy Quran. I urge you to watch all these documents specially if you live in Us and Canada but also Eu citizens.
Watch the endgame, police state, the obama deception, invisible empire
http://www.youtube.com/watch?v=NO24XmP1c5E
@Sry
I don't understand what you are saying.
Cheers.
Sry,
It seems like that user "Mohamed Cheers" is after me for some odd reason. But unlike me he has not been to Somaliland in the last three months. I just got back from there and one hardly sees anything you can define as a "government". Ordinary people run the place. Businesses pay police to maintain security, ordinary drivers give handouts to police at Control Points/Checks.
Traffic police are funded by drivers and passengers. Trash is out off control, the water system does not work or function. Most households dig holes under their water taps because the pumps wont rise the water, so they relay on "drops". Every Wednesday, neighbors collect water from a certain house. Almost all houses have water taps but none function.
The roads are disaster. This so called gov is no where to be seen. Most terrorists are often discovered by civilians.
How can you go to Western firms when they all waiting for a bailout from the tax payers and nations such as Greece, Italy, Spain and Portugal are gone under already. The West is not telling the true picture about their economic nature, many nations are in serious debt crisis and gonna go bankrupt.
The future is China, Brazil, India and I'll tell you why Somaliland needs those three nations. For a starter, Somaliland needs manufacturing plants, processed goods, sugar, rice, oils and equipment to drive its port and transport. Brazil is the biggest sugar producer today, China is the world's leading manufacture and India is the second biggest exporter of milled rice after Thailand, but we Somalis love Basmatti brown rice and India is the right destination.
What can the bankrupt West offer to an unrecognized nation? Zero, same old story, they have said these things over a million time. Another lie. Another useless misleading statement from a government that cant even take out its trash.
The future is China, Brazil, India; the Asian continent and Africa. China is the world's biggest consumer of energy which means they need oil, if Somaliland has proven oil, wouldn't going to China be a better business proposition than going around in circles in the same old blocks?
Brazil produces 20% of the world's sugars. Somaliland has big sugar addiction, 50kg of sugars cost $50, that's $1 per KG. You can help reduce this to almost halve if you can get $0.10 per KG from Brazil in bulks (50 tone etc).
Same goes with rice, 50 kg of rice (Captain from Pakistan) was selling $35 in Hargeisa. Its poor quality rice and too expensive.
These are the issues Somaliland needs to hear and solve, Western "oil" firms coming down just to mislead locals means nothing to us real Somalilanders. They will come and go after taking two photos at the former Morgan House like many times before.
We want the so called government to also lift the monopoly on import. At the moment only few handfuls can import goods into the country such as Indho Deero, Omar company, etc.
This is what Mohamed "Cheers" wrote 3 weeks ago on the same issue when Mr Duale attended the oil conference in South Africa:
"Same old stories since 1991.such infos are of no use. If the Regime of Brutal Dictator was successful about the Oil reservoirs in all Somalia proper during his tenure in power,
how come now funny stories are printed from here and there advocating speculations?
The Horn of Africa is no less richer than the GCC and if the Developed World are somewhat disinclined
to strike the Oil wealth of Somaliland then what???. Who cares anyway.
Cheers. "
Keyse,
ENOUGH of your ranting, JUST STOP IT go and get some sleep. Well, that is if you are not high on drugs, in that case you are excused.
@Kayse
I agree with you that Somaliland should go to China for lessons on dictatorship, Brazil on use of cocaine and gang warfare, and to good old India for some new tricks in the art field of official corruption. You are right about what you said about our homeland and its ineffective government, however the Western World can neither dismissed as bankrupt nor ignored as un-influential. Remember without the West, Chinese factories will not be able to export their products and buy gas, oil and other raw materials form Africa. Without the Western markets both India and Thailand would not be able to continue producing surplus rice for export. Brazil will not be cutting down the Amazon rain forest to make way for sugar plantations and cattle ranches without Western consumers. Also don't forget that the European Union is Somaliland's biggest financial supporter and is home to our largest Diaspora. May Allah guide the West, they are definitely better for us the Chinese but we should do business with anyone.
Dhugtame,
It seems the truth really hurts you my friend, Kayse has told the truth about your beloved Somaliland. The country is runned by the private sector and there is not much that your so called government is doing in the country, so be a grown up and stop with the name callings.
Data from Ophir Engery website
Licencee / interest (%)
Ophir (Operator) 75%
Ras Al Khaimah Gas Company (RAKgas) (JV Party)22.5%
Government of Somaliland2.5%
http://www.ophirenergy.com/assets/somaliland#lice…
The most important here is how we will share the profit from the discovery of the oil anf gas. This western firms are cheaters and thieves. See I think if not mistaken Tullow the british firm discovered oil in Uganda and sold ther business to another firm for 500 million dollras and the deal did not go through because President Museveni intervened and ask the firm to pay Income tax on the sale at a higher rate. We have to be careful with the western firm. The condition of the licence must be that if oil is discovered who ever did it must not sell the area to another foreign firm. We need people who must know to negotiate if this company are pretending to be smart then invite Chinese who are willing to drill the oil and shre profit on 50% basis. We have to be very careful with companies from west.
Dont worry about old man like Dhugtame they still into the Somaliland la-la-land dream, they have not been there since they were chased away in 1988.
Once they smell Hargeisa's trash they will wake up to the realities.
as Ahmed revealed, there you go, only 2.5 % in a share that will never come to light. No different to the million claims they said to us since 1991.
How foolish is it to only maintain 2.5% of your country's resources and donate the rest to some little Western firm in London.
Folks who you think that you buddies are kidding. I still stand by my no1 comments 1 day ago.
The Article concerns deals with semi-autonomous Puntland of Somalia and which failed to take off
since the Galgala of Maakhir Sanaag Somaliland Republic skirmish incursions erupted between the
Somaliland and Puntland. This Australian Ophir Energy of Garoole's doing is a dead deal.
We should expect upto now the Somaliland Republic have not engaged any oil deals with the International
business enterprises. My best guess is that the SDC Company London based will be the first of its kind
to manage any future joint business ventures in this regard..Kayse back to London white Guurti. now takeover
with your clumsy twisted ideas in the middle of no where what have you buddy.
Cheers.
Keyse,
Yes, I am an old man, but was not kicked out of Hargeysa, I still live in Hargeisa and I think I can smell my genes in you.
Mr. Kayse, where you live my fellow countryman. Do not compare Hargeisa with, were you get the hand-out from the tax payers money. Stop doing this to our country and be a reasonable person. The government can do and improve the lives of its people when money is available. The few tax dollars we collect from our mothers sitting at the sun and the few shop owners will not make miracle to develop the country. This government is better than its predecessor 100%, but it needs time and cooperation of its people to generate revenue.
I cannot imagine you compare Somaliland with the Europe and where the west build their infrustareture from what they robbed from African, centuries ago. You are a dreamer and nothing else. China too rob Africa in their way, and left only pollution at most, but we need them if we negotiate seriously and tell them to protect our environment. Most of the African countries have only enhereted pollution and corruption from Chines as far as we know. Hence, we need to dictate what exacly we wish to see they do for us.
Keyse,
Son, send me your picture or else pay me a visit when you next come to Hargeisa.
Mohammed is right the asians wouldnt be where they are if it wasnt for the western markets that buy their cheap goods and services (call centers). Todays economies are interconnected so to say ignore these people is basically to cut off your nose to spite your face.
Kayse has some problems with the administration and isnt thinking objectively. That is not to say that we should follow this government blindly but we did elect them. So lets trust that they will make a deal with the governments and companies of other nations that will suit both us and our investors.
All this other bull sh…being discussed here is useless, lets stay on topic.
Kayse do you want Somaliland to move on and become viable? If so why are you against almost everything that seems to be heading in some sort of direction. The only way to learn is to actually do, and this government is atleast trying. Just calm down and lets see what they work out, if its not to our best interest you can believe Somalilanders will handle it.
thanks kayse, you are the best, you are a head ot the reste.
somaliland ned someone like paul kagame of rouanda. just compare hargueisa and kigali.
Mark, Mark, Mark… SOMALILAND IS A COUNTRY!!!
Paddy processing machinery manufacturers
MILLTEC Machinery Pvt Ltd is the leading technology providing company for rice milling, Roller flour milling, Maize (corn) milling and pulses processing plants.Rice Milling Machinery, Rice processing equipments, Rice milling Technology, Rice milling equipments, Paddy processing machinery,Rice machinery manufacturer, service provider, Manufactures, exporters,MILLTEC Machinery Pvt Ltd, in bangalore, India
For more details visit :- http://www.milltecmachinery.com/
I wish to take herewith my comments about the live discussions for these Somalilanders, though it is quite difficult to know each other, and I can gess how it is difficult to have internet discussions while you do not know each other!!