The best thing that could happen to the country is if no oil is found Xan Rice in Sao Tome The Guardian Children outside their shack in the tropical forest in Riba Mato, a suburb of Sao Tome, Photograph: Armando Franca/AP Bribery, bullying and bad deals shatter poor nations dreams of petroleum boom Luis Prazeres was the first native-born airline captain in Sao Tome and Principe, and the country`s first minister of natural resources. He knew a lot about flying and nothing about oil. But neither did anyone else in the tiny African island nation, which had just been told it was on the verge of a petroleum boom. “There were all these foreign companies telling us that we had huge oil reserves, and bringing us agreements to sign,” said Prazeres, who took up his minister`s post in 1999. “Nobody here understood how complex it was.” Other governments are now finding themselves in similar situations. Rising oil prices have led to a surge in exploration in countries with little or no petroleum experience. Hopes of petrodollar bonanzas have already been raised in Ghana and Uganda, while prospecting companies are crawling over Gambia, Madagascar, Tanzania and Somalia. Yet Sao Tome`s bitter experience should serve as a cautionary tale. In the decade since a little known Texas oil firm wandered into government offices with an audacious plan, the 160,000 inhabitants of the lush, somnolent islands have seen dreams of their country becoming the next Brunei or Kuwait melt away in the equatorial sun. Their leaders have signed some of the most lopsided petroleum contracts in history. Bribes have allegedly been offered and pocketed. Regional bullies have muscled in, and in May the government fell to a no-confidence vote. “We have already seen everything that goes with an oil boom,” said Rafael Branco, the newly appointed prime minister. “Everything, except a single drop of oil.” Offshore reserves The twin islands of Sao Tome and Principe squat in the Gulf of Guinea. Their nearest neighbours are Nigeria, Cameroon, Equatorial Guinea and Gabon. All have found significant reserves of oil, much of it offshore. In 1997, a tiny Houston-based company called Environmental Remediation Holding Corporation (ERHC), which had no history of oil finds or production, decided Sao Tome might have its own deep-water deposits. In return for near-exclusive mineral exploration and exploitation rights for 25 years and a half share of profits, ERHC offered Sao Tome $5m and its marketing services. Sao Tome, heavily in debt and reliant on donors to fund most of its $30m budget, was desperate for cash. The deal was signed. Industry watchers such as Mohamed Yahya, of the UK-based peacebuilding NGO International Alert, would later describe the contract as “one of the worst in the history of oil”. And ERHC`s gamble paid off. Seismic data showed there could be up to 11bn barrels of oil under the sea around the islands. The most promising area was north of Principe, in waters also claimed by Nigeria. Nigeria, with decades of oil experience, agreed to establish a joint authority over the oil zone, but insisted the profits be split 60:40. When Sao Tome`s current president, Fradique de Menezes, was elected in 2001 he threatened to have ERHC`s contract torn up, but by then the US company had been bought by Chrome, a Nigerian firm headed by a businessman with strong ties to Nigeria`s ruling regime. Though the contract would be renegotiated twice, pressure from Nigeria ensured ERHC`s deal remained vastly disadvantageous for Sao Tome. Meanwhile, the potential oil reserves were causing excitement abroad. After the 9/11 attacks, the US government was seeking ways to reduce reliance on oil from the Middle East. Democratic, largely stable, and with a US-friendly president, Sao Tome seemed ideal. Several top US lawyers soon arrived to offer assistance in managing the oil contracts. A team from Columbia Uni versity`s Earth Institute helped draft model legislation that would ensure transparency and hold back some of the oil revenues for future generations. “All people could talk about was oil, oil, oil. The politicians made it sound like it would start flowing tomorrow, and everyone was just sitting back and waiting for the proceeds,” said Arlindo Carvalho, who was oil minister from 2003 to 2005. The best blocks in the joint Sao Tome-Nigeria oil zone had been put up for auction in 2003. In the first round, only one consortium, led by Chevron and ExxonMobil, emerged with a successful bid. Sao Tome`s share of the fee was $49m - a lot to a tiny country, but far less than expected. Late in 2004, more than two dozen companies competed for the remaining blocks. Many were Nigerian-linked firms with no experience of oil production. Manipulation A report by Sao Tome`s attorney general a year later concluded the auction had lacked transparency, was subject to “serious procedural deficiencies and political manipulation”, and had resulted in winning bids from unqualified firms. ERHC`s preferential rights had discouraged the more reputable companies from bidding, and cost Sao Tome up to $60m in fees, it said. Even more damning, to Sao Tomeans, were allegations in the report that their politicians had been bribed. One of the president`s top advisers was revealed to own a stake in ERHC, while a company controlled by Menezes was found to have accepted $100,000 from Chrome. Menezes and Chrome said the payment was a legitimate election contribution. Public anger was followed by disappointment at the oil drilling results. When Chevron tested its deep-water block in 2006, it struck oil but not in commercial quantities. Other companies plan tests next year. The government also intends to sell exploration rights in its exclusive territorial waters in 2009. Even if commercial quantities of oil are discovered, it will be at least six years before production starts. “There is a lot of exhaustion with the whole process,” said Paulo Cunha, who managed the Columbia University project. “But I think it would be wrong to brand Sao Tome`s oil experience a failure. It still has time on its side.” Others are not so certain. There is still very limited oil expertise on the islands. And given the alleged corruption, many local people have serious doubts that oil revenues could be managed properly, regardless of the good laws in place. “Sao Tome`s institutions remain among the weakest in Africa,” said Yahya. “The best thing that could happen to the country is if no oil is found.” © Copyright 2008. The Guardian. All rights reserved.

Absolutely wonderful! Inshallah Mogadishu will be Mogadishu we used to know and love.

woow they rearing to go and ready hitting some butts I saw 600 soldiers who finish training coupled of days ago on TV and they seemed rather disorganised and had no professional soldier appearance. These are different kind. Are they trained and supported by different donor countries, I wonder?

Wiilaloow faanka joojiya. faanku dadkana wuu ku diraa, waxna masoo kordhiyo. Marka saaxibyaal ilaahay ka cabsada Somalidana ha kala soo soo cinina. Xqidi iyo xaasidnimo ha beerina. waa iga waano iyo tusmo. habeen wacan

Khatumo aqoonsigaan ay ku wareereen muxuu yahay. Iyagu ha is aqoonsadaan markaas qof kastoo kale isagaa soo daba faylaya.

lool He always depicts Faroole as armed mad man! is he?

Carafaat;802198 wrote: bad suggestion. If his was about clan hegemony or a dislike for the secessionist he whould not have vehemently been against Khaatumo, instead he would have supported and armed to destabilize Somaliland. lool samething you're trying hard to do with your non stop listing of Puntland cities. But you are not very good at, just try little bit harder. Seccessionist has never been good with politics, they're too emotional for that.

Carafaat;802037 wrote: Faroole should talk with his pirate cousins in Eyl, with Caalin over Galkacyo and with Atam over Galgala. Somaliland and Somalia governing issue's are no concern of my or your sub-clan. lool you live in delusion. Habraha iyaga qabiil ma aha? meesha sadex habrood oo yar yar baa is biirsaday

The matters of seccession are not negotiable. What any talk will concentrate is how peace can prevail in SSC and end the dispute over the territory by Puntland and Somaliland states.

Carafaat;802028 wrote: Che, sees to agree with Faroole and wants Somaliland and Puntland to talk. Talks about what che? Samafal sub-clans should talk to sub-clans. I can ask my Caaqil or Suldaan to talk to Faroole. Or else Faroole should talk with Caalin on Galkacyo. What? TFg has nothing to talk to Northwest regions. The dispute is with North east and their brothers Khatumo. Everything else waa iska daba ka wareegto.

The talk should be between Puntland, Khatumo and Somaliland. The TFG should facilitate the talk and act as an oversight. This is local issues between regions within Somalia, not two sovereign countries talking over a dispute.

Gaacuur aren't you dramatising things and taking them out of context?

I think people comment things without reading the gist of it all. Puntland is working this new money with the federal goverment and the money is already ordered by the TFG. Some of it will be dispatched to Mogadihu and some of it to Puntland central bank.

Amazing scenery! Just wonder how land that rich suffers so many frequent droughts?

^This Ducaysane guy is one of the most coherent smart person in Faroole's goverment. I saw him being interviewed other day and he was very impressive! He can make oday Faroole run for his life

I watched this programme before and thought, this is what's happening in a country with a functioning goverment; what aabout a country like ours which does not have one? After more than 50 years Africa is still sleeping and the grear Somali song is still true: Afrikaay huridooy, waligaa huridooy, hadimahaagii hurudooy, haadbaa cunoyooy hurudooy...

nuune;799884 wrote: [ "We have repaired the airport and now international flights can use it. We have discussed with the president and Turkey will also do local flights inside Somalia." . Now that's a clever idea. These hazardous risky planes are reasons why many people and families do not visit Somalia for their holidays. If Turkish airways takes the local routes as well, it will quadrable its customer base and a lot of Somalis will travel with Turkish airways. Kudos to Turkey, In somalia they have a grateful brother.

Abwaan;798497 wrote: lol....ma is tiri adigaa talo u baahan iyo inaadan wax assume-garayn?.....how do you know inaan maqaayad war ka soo qaaday? Haddii aan qof sharaftiisa u bareero inan meel uga dhaco halkaan ma ku caddayn lahaa inaan respect u hayo? I even know naanaysihii C/weli yaraantiisii loogu yeeri jirey waanse ka leexleexanayaa inaan sidaas ugu talaxtago....waayo ma ahan wax habboon...unlike dad madaxda Soomaalida Hebel hotel ito maqaayad ugu yeera oo aan tuhmayo inaad adba garanayso....intaas hakuu ahaato tusaale of how much I know about our PM ee fadlan qof aadan aqoon sidaad caddaysay ha igala dooddin. marba hadaad dhahaysid been buu sheegayaa waxaa kuu fiicnaan lahayd inaad sheekada oo dhan oo dhamaystiran aad nasiiso, adaa afkaaga laga hayaa magaalooy wada joogeen isku iskuulna way ahaayeen marka way is yaqaanaan (taasi waa circumstantial eveidence), iyo anaa aqaan isaga iyo ku wa wasiirada u ah waana iswada garanaynaa, waa arimo kala duwan. Tankale degreegiisiiba hadaad khaladay sheekadaan kalana soow kaama khaldanaan karto?

Abwaan;798477 wrote: Carafaat beeshaada miyaa madaxtinimmo u raadineysaa? Oo beel hubaysan maka dhalan miyaaba? Maxaa hubka idinma soo gaarin miyaa? xitaa madaxweyne iyo maamul-goboleed ma qabtaan? this is just cabbirka Soomaalida badankeed ee maalmahaan socda waaye ee fadlan su'aalahayga halla yaabin:) Samafal ma waxaa maqashay dembiyeda dadka qabyaaladda wax ku difaaca lama qoro? Do you know Abdiweli In person, other than in laguu sheegay inaad isku cid tihiin? Anigu ma aqaan, ma difaacin mana cayn. adiga waxaa dabacad kuu ah inaad qof aad sharftiisa meel uga dhacdo, qof aan isaguba meesha joogin oo aan is difaaci karin markii lagu dhaho war ka joogna waxaad leedahay qabiil baa lagu difaacayaa! amazing Ninyahoow waa iga talo wax aad maqaahiyaha ka maqashay oo aadan hubin qof ha ku xukminin. Diin Islaam iyo mid gaalo mina ma qabto inaad qof aad kutiraahdid booli buu cunaa, xaqdaro kusocdaa, waa beenloow aadana wax cadayna miiska aadan keeni karin.

Amazing how easy its for some to attack people's integrity on hearsays and habar baa dhuustay..marar qaar waxaan is iraahdaa tolloow kuwaan malaaigtii maa ka dagtay Carafaat ma idaan fahmin. Reerkiisa buu meel uu kasoo galiyo la,yahay madaxtinimada somalia, cidlaladaan ay taaganyihiina waa dhibaysaa. Reerkaan Puntland ahna wuu tuhmayaa inay hortaaganyihhin, marka inuu madaxa darbiga ku garaaco miyeena gar ahayn?

Gabadha ha la daayo, with all the cheerleading for Faroole, its in the people's interest that some one is asking questions rather than following to the script. Odayga hadaan wax mucaarada oo su,aala waydiiya la helin, we will have a rich powerful dictator in our hands

I don't think any one should deny the victim's human right and I belive they should have stayed back and exhaust all means to bring the perpetrators of the crime to justice, but politicising it to score a political goal against Faroole and Puntland is wrong. For all we know, the soldiers and the said victims could have had an urgument and disagreement and the soldiers behaved badly. It happened to me while I was there and if I wanted to politicise it, all I needed was give a call to a clan based web outlet who would no time square it to Faroole himself. In every claim there are two sides, we only heard from one side and not from the other, so its wise and fair to refrain from judgement until you know all facts.

Libaax-Sankataabte;792963 wrote: ^^ Maya inadeer. Hala wada xaajoodo oo hala doodo, laakiin yaan la isku xad gudbin. Qofna meeshan uma yimaado in cay laga buuxiyo. Politicians and public figures are a fair game for criticism on these forums. Balse the nomads on this website need to be protected. Nomads should never be insulted, attacked or threatened for giving their opinion on a subject matter, passionate or not. Libaaxoow boowe, adigaa amiir ka ah meesha hadii aad aragtay cay, xadgudub qof qof kale ka buuxinaya wax ka qabo sharciga sitekana la tiigso. Laakiin nin isaguba dagaal ku jira ha la daayo, yaan lala hadlin waa cadaalad daro iyo in la qaato gardaro. Faroole iyo cid kasta oo kale waa la mucaaradi karaa adigoo siyaasadiisa abaaraya, laakiin qof walba ama madax ahaado ama yuusan ahaan wuxuu xaq noogu leeyahay inaan la caayin, sharaftiisana meel looga dhicin hadaadan wax cad haynin. Aniga Faroole dadka siyaasadiisa wax ka sheega baan ugu horeeyaa and my posts in SOL speak for itself, but I see a pure character assisination and down right hatred coming out from certain people and that should be tackled and confronted.

Exclusive: Inside mission to track down Somali pirates http://video.foxnews.com/v/1466494250001/exclusive-inside-mission-to-track-down-somali-pirates/?playlist_id=87485

Sh Sharif Sh Ahmed. No aonther amateur politician PLZ that will be clueless for another five years. Sh Sharif seems to have crack it at last