Somalia | Oil, Gas & other Exploration News

[Constantine MMX]

Originally Posted by Lailax

Inb4 invasion and claims of enriching uranium *cough*
Tongue in cheek comment perhaps but we all know ordinary Somalis won't get any of the profits. Natural resources corrupts in Africa. This will be no different.

No offense dear sister but that's b.s, Somalis have one of the most robust and investigative independent medias in Africa. These deals were already uncovered by Somali journalists before they were supposed to be shared with the public. Do you really think a bunch of foreigners could just come in and steal our resources without a backlash or popular uprising the moment people got wind of it? Why do you think ordinary fishermen started hi-jacking ships? They were stealing our marine resources and so they reacted in that fashion. These investors aren't stupid of history and know fully well if they take more than they deserve, both their infrastructure and the leaders they made the deals with would be destroyed and deposed. Connoco invested $150 million in explorations and infrastructure in the late 80s but because they bet on the wrong leader, and then on a US-UN intervention that went batshit all of that money went to waste.

Secondly, if the oil reserves are of the magnitude that is currently estimated, it will herald a significant new period in Somali development. Even if there is corruption, and say the leaders steal a hundred billion (never going to happen) the average Somali would still benefit immensely from the other hundreds of billions of dollars the oil reserves would generate and which the country's leaders would be forced to invest - or risk being deposed - be it in the form of new hospitals, schools and other important infrastructure, not to mention thousands and thousands of jobs.

Somalis aren't a docile people, if they feel oppressed they will resist, if they feel neglected they will make their voices heard by any means necessary. Remember they already deposed a dictator and lost a functioning republic in the process, the mere thought of foreigners coming in and stealing what's rightfully theirs would send them through the roof, and this particular characteristic is something the investor are very much aware off, and therefore like the Australian representative of Range Resources highlighted in the Al-Jazeera video, they have no choice but to stay on the right path, and not engage in shady ways.

[juzme123]

Originally Posted by The Nomadic Warrior

If Puntland really does have 20 billion barrels of Oil. That would make it 20th biggest proven oil reserves in the world. And Puntland is just one region in Somalia. Somaliland and Southern Somalia combined could potentially hold Oil along with our huge off shore possible with our large EEZ.

The potential is incredible. 20 billion barrels in two regions alone Considering the oil seeps in Somaliland and potential reserves in the largest region that is the south, on top of which would be any resrves of gas/oil found in what is the longest coast in the African continent as well as various mineral (uranium, iron ire, tin, gypsum, etc.), marine (fi$h) and agricultural resources, the economic potential is mind-spinning and this is only the primary sector of the economy. We should definately build up our manufacturing and services sectors as well - and all these resources for just a population of 10mil.

[Ayatulahi]

Originally Posted by Ras Siyan

Wey u qaraxday Somalia! War iska heshiiya khalas, cashada meesha taala wey idinku wada filantahee, anakana wax naga soo gaadhsiiya

Waa sidaa aad sheegtay, waliba intani waa meel kaliya uune, Somalia khayraadka ku jira adduunka oo dhan buu baahida ka saari karaa.

[BUTEMBO21]

Originally Posted by Xusein

We are ballin, man. Stuff like this makes me feel good.

Love it man.


That pic make me :

[Xusein]

Originally Posted by Lailax

Inb4 invasion and claims of enriching uranium *cough*
Tongue in cheek comment perhaps but we all know ordinary Somalis won't get any of the profits. Natural resources corrupts in Africa. This will be no different.

Depends. I think the Puntland leaders have more to lose if they try to steal this, everyone knows it's big and all eyes are on them. This is a chance to break the cycle. I am hopeful that this will help the living standards, we already have examples in Africa to avoid.

Originally Posted by Camellete

Every Somali knew Somalia was oil rich, the question is how far does it stretch?

LOL! My parents have been saying it's been oil rich for years! They used to say that the Saudis knew that Somalia had a lot of oil and would become a big competitor if it was allowed to drill it, so they have kept us down for that! (Okay, that's not too far fetched).

I also heard another Somali dude say that the oil from Arabia seeped down into Somalia due to gravity.

[musa90]

Originally Posted by Xusein

I also heard another Somali dude say that the oil from Arabia seeped down into Somalia due to gravity.

[Janub]

Originally Posted by Xusein

LOL! My parents have been saying it's been oil rich for years! They used to say that the Saudis knew that Somalia had a lot of oil and would become a big competitor if it was allowed to drill it, so they have kept us down for that! (Okay, that's not too far fetched).

That's a common Somali myth, but ironically the Arabs have always been the biggest supporters of Somali resource exploitation, going as far back as the Soarmico company. Currently its the Emiratis who have been the most enthusiastic supporters of Puntland's oil exploration drive. The Arab League is the biggest proponent of resource exploration in the Arab world, and Somalia has always been viewed by Arab states as a priority in that respect.

[Xusein]

Have any of their companies moved in?

[Lailax]

Originally Posted by Constantine MMX

Somalis aren't a docile people, if they feel oppressed they will resist, if they feel neglected they will make their voices heard by any means necessary. Remember they already deposed a dictator and lost a functioning republic in the process, the mere thought of foreigners coming in and stealing what's rightfully theirs would send them through the roof, and this particular characteristic is something the investor are very much aware off, and therefore like the Australian representative of Range Resources highlighted in the Al-Jazeera video, they have no choice but to stay on the right path, and not engage in shady ways.

No offense taken

But i'll believe it when I see it. I have a question, i'm assuming Puntland wishes to remain in a federal Somalia. WIll it share the profits to the South? Invest in their infrastructure as much as they will in their own region?

What about land ownership? Will Non Somalis be able to buy up large swathes of land?

[Lailax]

Originally Posted by Xusein

LOL! My parents have been saying it's been oil rich for years! They used to say that the Saudis knew that Somalia had a lot of oil and would become a big competitor if it was allowed to drill it, so they have kept us down for that! (Okay, that's not too far fetched).

My relatives thought that too.

All Somalis knew we had resources we just didn't know the extent. Tho the numbers are impressive.
Imagine the other Somali regions potential and even better our offshore as we have alot of coastline

[Janub]

Originally Posted by Xusein

Have any of their companies moved in?

Not that I'm aware of, but the Emiratis have been pulling all kinds of strings to make sure the Puntland exploration goes well. They've paid for the new "marine force" and sent supplies to the administration under the guise of aid (we're talking new Mercedes supply trucks and the like). Even as far as sending their own surplus military equipment for the administration's use. Not long ago they were poking India about voting to lift the arms embargo on Somalia.

I'm also in agreement with MMX in that Somalis will be quick to rise up if things go sour; Puntland has spent an arm and a leg trying to appease local clans about drilling. There have been numerous, intermittent squabbles and all-out conflicts since as far back as 2005-2006 directly related to clans rejecting exploration out of suspicion. The clans are fully on board with exploration and they've already been sweet-talked with gifts and development pledges. I don't expect much bad news to come out of this, all sides have taken precautions, and the administration has been mature about its dealings as of late.

[Camellete]

Originally Posted by Xusein

LOL! My parents have been saying it's been oil rich for years! They used to say that the Saudis knew that Somalia had a lot of oil and would become a big competitor if it was allowed to drill it, so they have kept us down for that! (Okay, that's not too far fetched).

I also heard another Somali dude say that the oil from Arabia seeped down into Somalia due to gravity.

@ gravity.
I actually heard that the Saudis used to give Somalis free oil just to keep them sweet

[Constantine MMX]

Originally Posted by Lailax

No offense taken

But i'll believe it when I see it. I have a question, i'm assuming Puntland wishes to remain in a federal Somalia. WIll it share the profits to the South? Invest in their infrastructure as much as they will in their own region?

Yes, the resources will be shared with the south and all the other parts recognised as Federal Somalia, though Puntland will enjoy the largest share. Similarly the South and other regions will get the biggest pieces of their own natural resource pies.

The establishment of infrastructure in other parts of the country is not really Puntland's task, but that of a Federal government, however Somalis are already investing in one another's regions right now, I don't see why this would change in the future with bigger economic returns.

What about land ownership? Will Non Somalis be able to buy up large swathes of land?

I think they can purchase a few acres, but the type of land-grabs that is sweeping the developing world will never happen in Somalia, where land is part of our people's very being.

[BUTEMBO21]

Originally Posted by Xusein

I also heard another Somali dude say that the oil from Arabia seeped down into Somalia due to gravity.

Some of my Somali friends told this story as well.

[Naijaborn]

Originally Posted by BUTEMBO21

Some of my Somali friends told this story as well.

AH!!!, lol, due to gravity, oil can only move downwards, towards the earth's center, not, Laterally, across the Earth's surface......
Anyway, I know that is a joke.

there is little or no oil in South Arabia, Oil the Huge oil reserves, are concentrated along the Gulf of Arabia/Persian Gulf.

[Janub]

I've just found out that the sharing agreement is 55-45, in favor of the Puntland administration. Eritrea gets a 60-40 deal on most of their contracts from what I know. These two figures are the best in Africa that I know of, and far better than the earlier deals that Persian Gulf states were known to step into. Kudos to the leaders and intellectuals of both entities on their brilliant business skills and foresight.

[Xusein]

The Arabs and Iranians were totally ripped off until the seventies.

55-45 is fair--for now. Hopefully if this whole oil thing actually works, a local company can be created.

[Janub]

55-45 is light-years ahead of other African revenue-sharing agreements, and those nations have made monumental gains with their oil income. Some countries have even skipped the whole industrialization phase and built Korea-like infrastructure in no time (wasn't their work but it's at least there). If all goes well, Somalia is in for a major facelift.

[Constantine MMX]

I'm on the phone, so I can't post the article, but Companies from South Korea, China, Japan, Turkey and others are rushing to Puntland for infrastructure projects.

[Xusein]

You're leaving us in suspense, sxb.