Somalia to be the 7th largest oil producer in the world Watch
British oil giant British Petroleum signed concessions with the Petrol Department for the Somali Federal Republic to explore oil and gas in the war raven East African nation.
Intelligence reports existence of significantly large oil deposits in Somalia which could change global prices if tapped.
The Somali shores of Indian Ocean could be having some of the worlds largest oil deposits.
Experts geographical assessments point out billions of oil barrels are reserved untapped in Somalia.
Intelligence collected by Strategic Intelligence shows Somali Puntland province has 10bn barrels of oil reserves, making one of the top 20 countries holding oil.
A company that drilled wells in Puntland estimate 4bn barrels (about $500bn worth at today’s prices) in its two discoveries in Somalia.
If drilled, Somali oil would flood the market beating countries like Nigeria and Kuwait to make Somalia the 7th largest oil producer in the world.
BP does have a good track record at developing local areas where oil development happens.
CHEVRON INTERNATIONAL SIGNS CONCESSION AGREEMENT WITH SOMALIA
SAN FRANCISCO, Jan. 31 /PRNewswire/ -- Chevron International Ltd., a wholly owned subsidiary of Chevron Corp., today announced the signing of a concession agreement with the government of the Somali Democratic Republic. The oil exploration agreement covers a three-block area in the Guban area of northern Somalia.
The concession blocks lie along the northwest coast of Somalia, both onshore and offshore extending into the Gulf of Aden. The concession encompasses approximately 40,509 sq. km., or 10,009,744 acres.
Geophysical surveys will be undertaken during the first two years of the concession term, with exploratory drilling to follow.
Copyright PR Newswire 1986 wire
OIL EXPLORATION AGREEMENT WITH CONOCO
8 July 1986
An oil exploration agreement was signed today between the SDR and Conoco Inc of the USA. The agreement stipulates that 98,700 sq.km. in Nogal, Sool and Togdher regions of Somalia will be subject to exploration.
The Somali Minister for Mineral and Water Resources, Jaalle Ahmad Mahmud Farah, who is also a member of the political committee of the SRSP (Somali Revolutionary Socialist Party) Central Committee, signed on behalf of Somalia and Mr (?Raymond), the company's representative, who will be based in Somalia signed on behalf of his company. The Minister and the representative also discussed how the exploration will be carried out. Present during the occasion were the Deputy Minister of Mineral and Water Resources, Eng Mahmud Shaykh Mursal, and the Permanent Secretary in that Ministry, Jaalle Muhammad Umar (?Asad). (Mogadishu in Somali 1115 gmt 17 Jun 86)
©1986 The British Broadcasting Corporation
AMOCO SOMALIA PETROLEUM CO. SIGNS AGREEMENT WITH THE GOVERNMENT OF SOMALI DEMOCRATIC REPUBLIC FOR ONSHORE PETROLEUM EXPLORATION.
5 May 1987
MOGADISHU, Somalia, May 5 /PRNewswire/-- Amoco Somalia Petroleum Company has signed a concession agreement with the government of the Somali Democratic Republic for onshore petroleum explorationcovering 35,091 square kilometers (8.67 million acres).
The acreage is in Blocks 6, 9, and 12, north and southwest of Mogadishu. Block 6 has 12,347 square kilometers (3.05 million acres), block 9 has 9,515 square kilometers (2.35 million acres), and block 12 has 13,229 square kilometers (3.27 million acres).
The concession agreement includes an initial three-year exploration period with rights of extension for three additional one-year periods, upon satisfaction of certain minimum work and estimated expenditure obligations. The concession agreement provides for aeromagnetic, gravity, seismic and drilling activities. Operations will begin within the next three months.
The minister for mineral and water resources, Ahmed Mohamoud Farah, signed the agreement for the government. Charles H. Moerbe, vice president of Amoco Somalia, signed for Amoco.
Amoco Somalia is a subsidiary of Amoco Production Company, the worldwide exploration and production subsidiary of Amoco Corporation.
© Copyright PR Newswire 1987 wire
19 October 1988
NEW YORK, Oct 18, Reuter*- Dupont unit Conoco Inc said it signed a 20 million dollar deal with the Somali government to expand its oil exploration activities in northeastern Somalia.
A spokesman for the company said the agreement, signed October 16, committedConoco to invest at least 20 million dollars in blocks 33 and 34 in the Northeastern section of Somalia.
According to a report on state-run Radio Mogadishu on Monday,*Conoco is committed to exploration in the Bari, Sool and Nugal regions of northeastern Somalia over the next three years.
The broadcast, which was monitored by the British Broadcasting Corporation, BBC, said the agreement was signed in Mogadishu on Sunday and exploration work would begin in three months.
The spokesman for Conoco said the company's exploration plans were in the initial phases of development. Conoco has been prospecting for oil in northern Somalia since 1986.
Another U.S. company, Amoco Corp, and the Italian firm*Agip SpA*are also exploring for oil in the region.
© 1988 Reuters Limited
PARKER LANDS MAJOR CONTRACT IN SOMALIA
6 September 1989
TULSA, Okla., Sept. 6 /PRNewswire/-- Parker Drilling Co. (NYSE: PKD) today announced a subsidiary has been awarded a major drilling contract in Somalia.
Conoco Somalia Ltd. has awarded Parker Drilling Co.*Eastern Hemisphere Ltd., a long-term contract to drill exploratory wells in the remote Las Anod desert region of the East African nation. As a result of the contract, Parker has re-opened a division office in the capital city of Mogadishu.
"Parker is grateful to again be returning to this important country," said Robert L. Parker Jr., president and chief operating officer. "We are especially pleased to renew our good relationships with the various Somali officials," he added.
Parker's versatile TBA 2000 Rig 195 is being mobilized for the contract. The rig, presently idle in the Sudan, is being trucked to Port Sudan. From there, it will proceed by barge to the northern Somalia port city of Bosaso and then transferred to trucks for the 430-mile, cross-desert trip to Conoco's initial location. From the Kenya port of Mombasa, other Parker camp facilities and equipment are being barged to Bosaso as well.
Wayne Hazelwood, a Parker employee who last worked in Somalia in 1986, has been named operations manager for the project. Spudding is expected to take place Nov. 15.
Parker is a worldwide oil and gas drilling contractor with operations in 15 countries.
© 1989, PR Newswire
International PHILLIPS Signs Exploration Pact with Somalia For
29 November 1989
Oklahoma City 11/28 -- Phillips Petroleum International Corp. Somalia has signed a concession agreement with the Somali Democratic Republic to explore for oil and gas on a 3.5-million acre onshore block, the company announced today.
Under the terms of the agreement Phillips is granted an initial exploration period of two years. After that time, it has the option to extend the concession for additional periods of one year each. Phillips plans to begin seismic work during the first quarter of 1990. No further details were given.
Phillips holds 100% interest on the acreage. The company now has interests in about 9.6-million acres in Somalia. It's currently working on a wildcat well in Somalia, in association with Conoco. The well is on a separate block. Currently there is no oil or gas production in the country. About 50 wells have been drilled there, a Phillips spokesman said.
© Copyright 1989 McGraw-Hill, Inc.
MOBIL, SHELL SET SOMALIA EXPLORATION
30 August 1990
FAIRFAX, Va., Aug 30, Reuters- Mobil Corp said its Mobil Exploration Somalia Inc affiliate signed a joint venture agreement with Pecten Somalia Co, a Shell Oil Co subsidiary, to explore a block in the Indian Ocean offshore Somali.
The concession area was awarded to Pecten in 1988. As operator, it has already conducted extensive seismic evaluation of the 14.9 million acre block. Pecten's parent is a subsidiary of the Royal Dutch/Shell Group.
Mobil said it and Pecten will equally share the exploration risk and any resulting production. They expect to drill the first wildcat well early next year.
© 1990 Reuters Limited
These articles will help if anyone wants to gain an insight into the situation.
Financial Times, Analysis
May 13, 2013 5:20 pm
Somalia: Oil thrown on the fire
By Katrina Manson
Energy companies scrambling for reserves risk opening up dangerous faultlines
After an absence of more than 30 years, Abdirizak Omar Mohamed has returned to Somalia, the country of his birth. Last year he gave up his job as a civil servant in the housing sector in Canada to take up a position as one of only 10 ministers in Mogadishu’s new, slimline cabinet.
As minister for natural resources in a dysfunctional country divided by a continuing war, he has to oversee a bulging portfolio that includes water, agriculture, the environment and livestock. As if that were not enough, his brief now also includes hydrocarbons just as Somalia – and east Africa more broadly – has become one of the most attractive frontiers in oil exploration for leading companies such as Royal Dutch Shell and ConocoPhillips.
“The president and I have discussions every day about oil,” says Mr Mohamed in his office that looks out at the Indian Ocean across the tumbledown city of Mogadishu. Late last year, Somalia caught the attention of foreign oil companies by announcing it intended to auction some of 308 newly delineated oil blocks this year.
The world’s leading oil companies are increasingly accepting that their quest for new reserves will take them into challenging new territory. In regions such as the Arctic, the problems are technical.
Around the Horn of Africa, companies must calculate whether political and security risks will put too heavy a burden on their production costs. This is hazardous territory in which to operate. A chunk of Somalia is still under the control of al-Shabaab, jihadi militants allied with al-Qaeda. Its waters are the hunting ground of pirates, who since 2005 have earned close to $400m by ransoming 149 vessels.
The politics is also messy, internecine and riven by militias. Oil companies in the race for contracts find themselves unsure whether the power lies in Mogadishu or in semi-autonomous regions such as Puntland or self-declared states such as Galmudug. Somaliland to the north, bordering Djibouti, has declared itself a fully independent republic.
Attempts to carve up oil blocks before the Mogadishu government even controls the whole national territory are undermining efforts to bring peace and stability to a state that has been shattered by 22 years of war and that exports terrorism. The race to lay claim to resources risks triggering wider conflicts: regional authorities have been hostile to central government since the 22-year military dictatorship of Siad Barre. When he was deposed in 1991, warlords carved up the country – and several clan-based militias still hold sway, sometimes cutting deals with al-Shabaab.
The danger is that the race for oil will feed a destabilising rivalry between Mogadishu and other regions – some still influenced by former warlords – just as the international community is celebrating progress. UK ambassador Matt Baugh says the situation remains “very, very fragile”. Rival administrations have issued several companies rights to a clutch of overlapping oil blocks, redrawing the political map of Somalia in line with their own interests.
On an international level, disagreement between Kenya and Somalia over their maritime boundary has also created what one diplomat terms a “triangle of confusion” reaching across 120,000 square kilometres. Kenyan troops defend the port of Kismayo, south of Mogadishu, notionally in support of the Mogadishu government, but Somali officials worry Kenya is keener on securing oil rights.
“The biggest conflicts right now among Somalis are all about oil rights, oil is the main player in all of this mess,” says Mohamed Nur of Dissident Nation, a lobby group. “But it’s also a force that allows all sides to have bargaining chips and have an equal role in the future of the nation.”
Indeed, seven months into the job, President Hassan Sheikh Mohamud has called for a consensus, saying he has not yet signed any oil deals. He has also called on international oil companies not to cut their own deals with regional authorities because “that will block their future engagement in Somalia”.
“Resources should not be used as a pretext for new conflict,” he told the Financial Times.
It is a short drive from the president’s office to the well-guarded steps of the resources ministry. From behind the window of his bulletproof vehicle, Mr Mohamed points out the recent additions to Mogadishu’s scars: a car bomb here; a suicide attack there. “We should wait until we have the right laws in place, we are not ready yet,” he says, before heading home for a lunch of chips, camel steak, spaghetti and cumin-infused rice. Such a culinary hotch-potch offers a reminder that the former Italian colony has long had to contend with foreign influence and interests.
But oil companies are not proving as patient as Mr Mohamud – or as patient as he would like. A quarter of a century ago, BP, Chevron, Conoco, Eni and Shell bought oil blocks and started ambitious exploration programmes. By 1991 they had all put them on ice, declaring force majeure as civil war took hold. Now several companies want them back.
The Somali government has already started discussions with two previous concession holders – Eni and Shell – that want to reclaim their pre-1991 blocks and enter into production sharing agreements, says a senior government official. He adds that Conoco is also ready to reclaim its stake and that BP is considering the idea.
While the companies have not presented concrete plans, oil executives say they are interested in Somalia should force majeure be lifted.
But hazardous faultlines between competing authorities are beginning to erupt. In February, PetroQuest Africa, an affiliate of US exploration company Liberty Petroleum, signed a deal for a block with the regional government of Galmudug, a self-declared state to the north of Mogadishu.
The move shows how quickly tensions can be inflamed because Liberty’s concession overlaps an offshore block also claimed by Shell. In a letter of April 24, Shell asked the Somali authorities to take action to safeguard its “exclusive rights” to the block.
Mr Mohamed is quick to defend Shell and the pre-eminence of his weak, donor-backed Mogadishu government: “Galmudug should not ever offer any block to any company let alone the Shell block; it should not be signing contracts . . . there’ s only one president.”
In Galmudug itself, they see things differently. The president there is Abdi Hasan Awale Qeybdiid, a former warlord portrayed in Black Hawk Down, the film of the disastrous 1993 US mission when Somali militants downed US helicopters and dragged US corpses through the streets. He told the FT that he believed his agreement with Liberty was in line with the new provisional, federal constitution.
“We are not feeling any guilt for this kind of thing,” he says. “If there is a problem between the government and Galmudug we need to discuss, including Shell and Liberty and everyone, let them come to court.”
Phoenix-based Lane Franks, president of PetroQuest and Liberty, co-founded by his brother and US Congressman Trent Franks, suggests Shell should buy them out if the company wants to avoid stoking violence in Somalia. “Shell could still maintain its operatorship by compensating PQ with a modest royalty and reasonable fee to acquire all the PQ rights,” said Mr Franks in a letter to Shell executives on April 9. “Shell would also avoid potential rebellion or backlash from the autonomous states [that could reignite] ... at worst, another civil war.”
Abdillahi Mohamud of the East African Energy Forum, another lobby group, warns that such frictions show the stakes are high: “If we see a scramble for petroleum concessions before a political settlement between the federal states and Mogadishu is reached, we can definitely see a new conflict.”
In 2005, when Marcus Edwards-Jones, now non-executive board director of Aim-listed Range Resources, went to Puntland – a semi-autonomous state of northern Somalia – he took a Ukrainian charter plane from Yemen, lured by the promise of data left over from when Conoco conducted surveys there.
“It was a no-go area in those days – humanitarian planes didn’t even land, they would just drop aid out the back of a plane,” says Mr Edwards-Jones. Undaunted, he went on to raise $40m from London fund managers to explore throughout Puntland following an agreement with the government. Range and its partners have put more than $100m into the zone. In addition to drilling two wells, they built an airstrip and deployed 250 troops, led by South African security contractors, to counter al-Shabaab.
Mr Mohamed insists that any contracts signed with Puntland since 1991 are “null and void”, and ConocoPhillips wrote in 2007 that it had “not relinquished its rights in Somalia”. But Puntland’s government countered in February that the Mogadishu government was interfering “illegitimately on resource exploitation”.
Both Range’s wells were dry, hitting the share price and making it harder to raise money for the next well. But Mr Edwards-Jones says the area is so vast he would need to drill 15 wells before he gave up hope. “We did find traces of hydrocarbons down there; you can miss it by five feet,” he says.
His group has not been able to touch a more attractive block, Nugaal, because it lies in a controversial zone. In fact, Puntland draws its border with Somaliland to accommodate the Nugaal block. “Puntland came up with this creative imaginary boundary to entice oil and gas companies,” says Hussein Abdi Dualeh, Somaliland’s energy minister. He himself faces similar claims from Mogadishu, which says Somaliland has no right to make oil contracts of its own.
Mr Dualeh says the earlier claims in Somaliland have lapsed. He has kept up the pressure by bringing in new companies. Two weeks ago Somaliland signed over a block to Norway’s DNO International. Ophir Energy has an interest in two blocks that overlap former BP blocks. Genel last year took a stake in two other onshore blocks – one of which overlaps a former Conoco block – and is conducting a seismic survey.
“Ninety-five per cent of who has legality is whoever controls the territory,” says Mr Dualeh of Nugaal. “No oil and gas company in their right minds would come in willy-nilly and start doing things.”
But the situation is looking even more complex. The area around Nugaal, Khaatumo, last year declared independence from both Somaliland and Puntland, highlighting the risk that oil could rupture the country.
Mr Mohamed admits there are fissures. He wants to change the constitution – crafted at great expense by Somali lawmakers and UN legal experts – to accommodate an amended version of the 2008 petroleum law, which stipulates that the central government will determine oil deals. “We want oil companies to come into the country;but companies are taking huge risks, some of them deliberate.”
Development: A tangle of converging foreign interests
In recent years, foreign involvement in Somalia has been characterised as part of an effort to combat terrorism.
But now Somalis are quick to identify a new set of self-interested motives. “Of course it’s all about oil,” says one senior Somali adviser about Norway’s growing interest in his country.
Norway, whose state oil company Statoil is exploring off east Africa, has made various commitments to Somalia. Oslo has installed solar-powered lamps on the streets of Mogadishu and is setting up a special $30m finance facility.
Last month a Somali parliamentary delegation visited Oslo to discuss co-operation, development and the management of natural resources. Most critically, these talks included discussion of a triangle of water disputed between Kenya and Somalia.
The Somali parliamentarians rejected a 2009 agreement by the previous transitional government to sign away the triangle to Kenya. That has raised the political stakes surrounding the status of Jubaland, a proposed Somali region neighbouring Kenya that would hold sway over the disputed offshore zone. Diplomats say that Kenya, whose peacekeeping troops guard Kismayo, the port at the economic heart of Jubaland, is keen to assert influence there, against the wishes of the new Mogadishu government.
This tension between Somalia and Kenya matters to western oil interests. Somalia has already warned Statoil, along with Total and Eni, not to accept any oil concessions offered by Kenya in the disputed triangle.
Oslo lobbied hard for a Norwegian to become UN envoy to Somalia. That job instead went this month to a diplomat from the UK, which last week hosted an important conference on Somalia.
The attendees at the conference revealed the range of interests converging on Somalia. Qatar, for example, is an investor in Shell. Turkey has led a diplomatic charge for Somalia by setting up an embassy outside the secure airport compound and delivering prominent support, such as a camp for displaced people, a technical college and scholarships.
In the cold war, the Soviet Union and the US competed for influence in Somalia.
But the competing forces are now far more complex.
May 11 (Reuters) - A dispute between two semi-autonomous regions in Somalia is delaying exploration for oil and gas over fears that local authorities are issuing licences to explore blocks that overlap in each other's territories, officials said.
East Africa has become a hot spot for oil and gas explorationafter new finds in waters off countries including Uganda, Tanzania and Mozambique.
The boom has led to speculation about the potential for finding oil offshore Somalia in the Horn of Africa, which so far has no proven hydrocarbon reserves.
"Put it this way: Puntland and Somaliland have what's called 'disputed areas.' It's really created a quagmire," said Ali Abdullahi, the chief executive officer of Amsas Consulting, a Somali firm that advises private oil firms in the region.
Somaliland, which declared its independence from Somalia in 1991 but is still not recognised internationally, has been relatively stable compared with other parts of the country, which has lacked effective central government for two decades.
Although Puntland is also stable, it is notorious for piracy and has frosty relations with Somaliland.
Both regions claim they control a disputed area known as Sool, Cayn and Sanaag (SSC).
Within that zone lie nearly a dozen oil blocks, mostly unlicensed, demarcated by Puntland and Somaliland authorities, according to a map from data firm IHS.
Companies are unsure whether their contracts with the local authorities to drill wells will remain valid.
The dispute between Somaliland and Puntland mirrors another between Kenya and Somalia over their maritime border, which may also deter oil exploring firms.
In March, Canadian firm Horn Petroleum, and its exploration partners, including Vancouver-listed Africa Oil Corp., started drilling in the Dharoor Block, located in the northeast part of Puntland.
Oil consultant Abdullahi and other Somali oil analysts have claimed, furthermore, that any find by Horn Petroleum in Dharoor may be threatened by the fact that state-controlled Italian explorer Eni may still have legal rights to the block.
Eni was issued a license by the Somali government in the 1980s to explore Dharoor.
Both Eni and Horn Petroleum declined to comment.
Additionally, another block licensed by Horn Petroleum and its working partners in the western part of Puntland, known as the Nugaal Block, overlaps a block licensed by Somaliland to unlisted British explorer Asante Oil.
"We are aware that there are overlapping claims in the Nugaal block but don't wish to comment publicly," said Keith Hill, chairman of Horn Petroleum, in an email to Reuters.
"We believe this is a matter best resolved directly by the respective parties."
Asante Oil could not be reached for comment.
For their part, Somaliland and Puntland each deny they have encroached on the other's territory. They blame the other side for licensing blocks in areas that don't belong to them.
"There were a lot of stories about overlapping licenses, (but) it is clear that Somaliland doesn't make any claim beyond the colonial borders that were demarcated," Hussein Du'ale, the minister of mineral resource, energy and water, told Reuters.
In an interview in Somaliland's capital Hargeisa he said the Nugaal Basin, where the Nugaal Block is located, is 80 percent owned by Somaliland, and the licenses issued by Puntland authorities to the same stretch of land are invalid.
"We recognize that there is license given by the administration of Puntland, which claims that this is part of their territory," Du'ale said
"If you look at the colonial border this goes deep into Somaliland territory. We don't ... claim areas in Puntland, and we hope that our brothers will reciprocate."
Issa Mohamud Farah, Puntland's petroleum director, who is in charge of oil exploration, was unavailable to comment.
Without a central government, analysts said it is unclear how and when the potential oil and gas reserves believed to be in Somalia can be explored.
"The (Somali) federal government has been weak for a very long time," said Abdullahi, the oil consultant.
"That leaves the question of who's right and who's wrong here? It's so hard to know."
The East African country plans to hold a licensing tender next year after Soma Oil and Gas, funded by Russian billionaire Alexander Djaparidze, completes the seismic study, according to Abdullahi Haider, a federal government adviser. Somalia, with no proven reserves, has been in talks with Shell about resuming work suspended at the start of the war in 1991, said Abdirizak Omar Mohamed, an adviser to President Hassan Sheikh Mohamoud.
“Once we settle all the issues between the federal-central government and regional authorities, the petroleum law, the establishment of the regulatory framework, then optimistically there will be full-scale exploration,” Haider said in an interview from Mogadishu. “This time next year we could have the possibility of seeing major oil companies coming in.”
International oil companies are weighing a return to the Horn of Africa nation as the political situation stabilizes and pirate attacks subside. Somalia wants to catch up with Kenya, Tanzania andMozambique to the south, where recent discoveries promise East Africa’s first oil exports as soon as 2016.
“We have expressed interest in appraising opportunities for future projects in Somalia,” said Julia Dudley, a London-based spokeswoman at Shell. The Anglo-Dutch company holds rights to blocks M3 to M7 where it still has force majeure in place, exempting it from exploration obligations.
Foreign investors continue to face obstacles, from problems transferring funds to the country to security threats from al-Shabaab militants, who have waged an insurgency since 2007 to try to topple the Western-backed government and impose Shariah, or Islamic law.
Djaparidze-led investment company Winter Sky, which holds 30 percent of Soma Oil, provided the explorer with $50 million to start the survey in an area the size of the North Sea, Soma Oil Chief Executive Officer Robert Sheppard said. Soma Oil will have the right to make an application for as many as 12 blocks covering 60,000 square kilometers (23,000 square miles) in “consideration for doing” the seismic study, he said.
The company “will be given some blocks, but it’s not going to be their own preferences,” said Mohamed, the government adviser. “We will have an open and transparent bidding process,” said Mohamed, a former national resources minister who signed the survey contract with Soma Oil.
“Somalia seems promising,” Djaparidze’s son Georgy, a non-executive director at London-based Soma Oil and an investor in the company, wrote in an e-mail. It’s his first project in East Africa, and he chose it because he was seeking an opportunity to increase risk exposure, he said by e-mail.
Djaparidze senior is a founder of Eurasia Drilling Co., Russia’s largest oilfield services provider, and has extensive experience in petroleum exploration.
Soma Oil is betting on oil discoveries in Madagascar, where more than a dozen companies including Exxon Mobil Corp. (XOM) and Total SA are operating. The island split from East Africa about 165 million years ago, and it’s gearing up “to find something very big” in south Somalia’s deep waters, where the only well ever drilled was by Exxon in 1982, Sheppard said in an interview inLondon.
Somalia “will be able to negotiate and work with them, the big companies, on a more equal basis” equipped with seismic data, he said. “We’ll open the door for the big guys.”
And then there is the Uranium.
For now however, I hope whatever oil, gas or minerals we have stays under the ground. We are not ready for it. We have tribal administrations fighting each other under the guise of federal states or breakaway regions. The petroleum laws are contradictory and not accepted by the regional administrations. Terrorists who believe they will enter heaven immediately the moment they blow them self up in front of a coffee shop etc.
The problem is that a company like BP would need to invest many billions of dollars into a scheme like this and Somalia isn't politically stable enough to attract those levels of investment.
There's a dispute between Somalia and Somaliland (where the oil is located) about the rights to the oil fields, so it'll be while before any taps start flowing.
The oil isn't just located in that place. The likes Eni, Shell and BP were exploring in other areas of Somalia.
The dispute is between Puntland (a regional administration of Somalia) and Somaliland (a breakaway region of Somalia). The federal government in Mogadishu has not entered the fray and hasn't issued any statements about this.
The oil isn't just located in that place. The likes Eni, Shell and BP were drilling in other areas of Somalia.
The federal government is trying to improve its relations with Puntland, while at the same time they are trying to tempt Somaliland away from seeking international recognition. So they are neutral in this territory dispute between Puntland and Somaliland, an area which is said to contain oil.