Saalax

The London conference and Puntland state of Somalia

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Apparently Puntland federal state has the most offshore oil in Somalia  while Galmudug  & Hiirshabeele have the most Gas. Those are the findings presented so far.
 

 

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This is merely the tip of the iceberg and this conference’s only objective is to get a lot of Somali folks salivating at the prospects and potential of Somalia’s natural resources. I see many Somali elites from around the country recalibrating their political stances based on this new data— and yearning to move to ‘greener’ pastures, as it were😄

In any case, the sooner the Federal constitution is completed and a genuine resource sharing agreement between all Somalis is reached, the better for all concerned.

  • Haha - That was funny. You made me laugh! 2

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14 minutes ago, Tillamook said:

This is merely the tip of the iceberg and this conference’s only objective is to get a lot of Somali folks salivating at the prospects and potential of Somalia’s natural resources. I see many Somali elites from around the country recalibrating their political stances based on this new data— and yearning to move to ‘greener’ pastures, as it were😄

In any case, the sooner the Federal constitution is completed and a genuine resource sharing agreement between all Somalis is reached, the better for all concerned.

 

Many areas are missing in the data though such as Somaliland region and south Jubbaland.  Expect many people to move to Puntland and Galmudug now and buy plots of lands in the coastal areas. :D

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Interestingly enough, Dubai is one of the locations where the survey results will be presented. Houston is the other.

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29 minutes ago, Tillamook said:

This is merely the tip of the iceberg and this conference’s only objective is to get a lot of Somali folks salivating at the prospects and potential of Somalia’s natural resources. I see many Somali elites from around the country recalibrating their political stances based on this new data— and yearning to move to ‘greener’ pastures, as it were😄

In any case, the sooner the Federal constitution is completed and a genuine resource sharing agreement between all Somalis is reached, the better for all concerned.

Representatives from all the regions are in London but  i don't think the collected data covers Puntland.

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Biciidkaan dili dono Subagiisa ma dhami.

If this was just a pitch to show the oil and gas potential in Somalia why call oil it an auction in London. If Somalia has a raw data that is proven, companies will show up without publicity. 

They are confusing us. Last week they said they were auctioning oil blocks and today they are saying it is a marketing pitch.

But first make the rules for resource development and the constitution. Why they are rushing. Make the country save for resource extraction first.

 

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They were trying to sell Somali oil blocks without the consent of the Somali people and the parliament. When they got caught , they tried to change the subject.

Mudaharaad markii ay maqleen ayey saxaafada soo wada fadhiisteen ilaa madaxweynihii.

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This is the first initial step to get very rudimentary seismic data. The data collected at this stage only shows the structure of the rock formation below. Further surveys will be carried out by the winning company of the block. 

Considering Somaliland's experience, which engaged TGS from Norway to do this type of initial data collection. It will take about 5 years to get to stage where a well will be dug and oil/gas can be proved. 

With Gas, it is the real deal. Gas is fetching higher price in the energy market today, while Oil is slugging. But the Capex for extracting Gas is much much higher. A specialised freezing plant will need to be created, which uses very high amount of energy. The frozen gas can then be transported to market. The other option is to pipe the gas out from the well all the way to the market like Russia does for Europe. 

Only Qatar has the sort of money that can make Gas export reality. 

 

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4 hours ago, galbeedi said:

They were trying to sell Somali oil blocks without the consent of the Somali people and the parliament. When they got caught , they tried to change the subject.

Mudaharaad markii ay maqleen ayey saxaafada soo wada fadhiisteen ilaa madaxweynihii.

Does the president not have mandate?

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1 hour ago, Suldaanka said:

This is the first initial step to get very rudimentary seismic data. The data collected at this stage only shows the structure of the rock formation below. Further surveys will be carried out by the winning company of the block. 

Considering Somaliland's experience, which engaged TGS from Norway to do this type of initial data collection. It will take about 5 years to get to stage where a well will be dug and oil/gas can be proved. 

With Gas, it is the real deal. Gas is fetching higher price in the energy market today, while Oil is slugging. But the Capex for extracting Gas is much much higher. A specialised freezing plant will need to be created, which uses very high amount of energy. The frozen gas can then be transported to market. The other option is to pipe the gas out from the well all the way to the market like Russia does for Europe. 

Only Qatar has the sort of money that can make Gas export reality. 

 

That exactly what Farmaajo said, this is a start of process, 5 to 10 years, before digging. You have start this though

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21 minutes ago, maakhiri1 said:

Does the president not have mandate?

Since every oil major had been involved in Somalia in the past, this is wrong issue to start at this time. American companies still have valid promises, since they can say it was Somalia's fault they could not continue. French company was also involved at one time.

Both externally and internally oil at this time is just calling for trouble.

Food production and ports would be more than enough for now, since food production requires a lot of pre and post processing industries.

The president cannot have mandate. Mandate based on what? Even parliament does not have mandate since the constitution is not ratified to give power to parliament. How about regions...there is nothing agreed and voted for in this regard.

 

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12 minutes ago, Old_Observer said:

Food production and ports would be more than enough for now, since food production requires a lot of pre and post processing industries.

All we saying is secure the country first and then enter as much agreements as you can.

It doesn't take twenty years to extract oil from deep water. Shullenberger, the auction managing company  is huge company that operates around the globe. Floating platforms are even cheaper than the fixed once. Just like the gulf of Mexico , the Indian Ocean is a warmer climate than the north Sea.

It also shows the  deep influence of prime minister Khayre. His former company Som oil is the one that did the seismic exploration, and now they want to transfer their data to the bigger companies. He is probably brought to this post to secure the rights of these blocks to his bosses. Farmaajo is a weak bystander who doesn't even know the game that much. 

Somalia is mixing it self with crony capitalism and oil oligarchs without proper due diligence. We can't accept foreign  oil insiders control our government. This Khayre guy won't be going anywhere until he finishes this deal. He might even replace Farmaajo and takeover the whole thing.

American owned Conoco oil got the  rights in Awdal region and Djibouti border almost thirty years ago. Stop looking quick cash and concentrate the security issues especially Mogadishu.

 

 

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18 hours ago, galbeedi said:

His former company Som oil is the one that did the seismic exploration, and now they want to transfer their data to the bigger companies. He is probably brought to this post to secure the rights of these blocks to his bosses

That is the reason the British government supported this outfit in Villa Somalia. After all, the whole Som-Oil was hatched and conceived between the British investor capitalists on one hand and the Norwegians folks of that kind of industry. In particularly those who are in what is known as the "frontier investors".

These "frontiers investors" are folks who have a large appetite for the "riskier investments" in the troubled states or in the virgin states in the third world that have not being invested before. And these frontiers investors are mostly in the "extraction industry" of the third world countries. And more to the boot, they get lots of political and legal cover (or help) from their home governments.

And in the case of the SOM-Oil, who one of its directors is Lord Micheal Howard, a former British Home Secretary (i.e., UK's Interior ministry), the UK's government have had a long term objective to bring Somalia's extraction industry into fruition.

This is the reason that, from 2012 the UK's government (from the then Prime-Minister Mr Cameron down to his ministers) did went out of their ways to "secure" at any means necessary Somalia's oil and gas for British's investors. Given that it will amount to a lucrative industry that is a virgin industry, which means it was not tapped before and therefore it will be good for UK to "lock" that country (i.e., Somalia) for UK's investors in the extraction sector.

And incidentally, the reason the UK have had a larger hand in Somalia since 2012 (through appointing a successive British's UN envoys to Somalia) has largely to do with the notion of helping Somalia to became a stable and functioning country so that UK's extraction investors will have what is known as the "first-mover-advantage" in that virgin territory against other countries investors.

And, of course, it seems that quick desire in which the then Prime-minister Mr Cameron have had for Somalia which was to "stabilize" Somalia with UN's help and with British's UN's envoys in say, 10 years, so that, UK, once Somalia will be ready for the prime-time of heavy gas and oil investment in and around 2021/22 (at the latest) will be in a position to "exploit that, is unlikely to happen now given that Somalia is not ready for that sort of investment in any time soon.

And now the whole exercise that is taking place in here in London is to get others to "buy-in" the "hype" of the future prospects. Not here and now kind of investment action. And that means, these guys in Villa Somalia are essentially selling hype and razzmatazz to investors from around the world in the hope that those investors will still be interesting to invest their hard cash in Somalia in say after 2025 or afterwards.

It's essentially akin to a public elation (PR) hype of telling investors that I will have for you a "delicious loaf of bread" next month first Wednesday, and therefore now here is a your chance to "purchase" that "possibility" or that "promise" with an upfront hard cold cash in which you will have to "deposit" it into my pocket now. Not next month when I presumably and allegedly will be given you the said "loaf of bread".

It's all about getting (or at least collecting) the hard cold money for the re-election campaign of the Villa Somalia's folks, come 2021/22. But in all seriousness there is no prospect at all of any large investment, particularly of the kind in which Somalia's would be extraction industry will need, that is going to be going into Somalia any time soon or for the foreseeable future, at all.    

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2 hours ago, galbeedi said:

Somalia is mixing it self with crony capitalism and oil oligarchs without proper due diligence. We can't accept foreign  oil insiders control our government. This Khayre guy won't be going anywhere until he finishes this deal. He might even replace Farmaajo and takeover the whole thing.

I watched the presentation and somewhere at the end there was this guy who was introduced as a New York businessman with 20 billion dollar assets. The Somali Gov't official said this guy will earnmark 10 billion assets. When the NY man took the microphone, he said he has 3 billion funding available. So right there on the podium, already, there is misunderstanding and conflict. By the way, being 20 billion asset doesn't mean they have cash. Assets can be anything, people who have billion dollar assets can go bunkrupt because of cashflow and no one is interested in their assets, case in point that is fresh is the Indian brothers Reliance Industries.

Btw, this is the sort of people you will never want to associate with. But it seems some in Farmaajo's gov't have already been bought out. 

What they should have focused instead of bringing onboard shoddy crooks like the NY man, they should focus on Oil and Gas companies that have track record in this type of business.

It seems to me, Somalia's assets is being squandered by irresponsible indivituals. 

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