baala xoofto

Somali Oil & Gas

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As the race to export Somali Oil & Gas is on. I thought, making a dedicated page for all the news related to this is a good idea. So here its.  

Ethiopia's Somali region was the first region to drill commercial well. However, it seems this has hit a huge roadblock. The company that was supposed to take the Oil to commercial markets seems to have run into financial problems. They cannot get finances for the Pipe that carries the crude Oil from the well to the Port of Djibouti. Eventhough Berbera Port is about 50% closer to the Oil field, for political reasons the Chinese want to send it through Djibouti. This means going through mountainous regions around Jigjiga area and into Siti district. If they went the Berbera route, it is all flat land all the way to Berbera with just small hills in between.  

 

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Next up, Puntland had high hopes of striking oil, but it seems their chances was a stab in the dark. With no much of seismic data to go by and guide, two oil wells that were drilled in Puntland turned out to only contain H2O rather than Oil. 

There is only so much financial lost that a small Oil outfit could bare. Africa Oil pulled out of Puntland in 2015. 

 

 

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galbeedi   

Actually, I might take some of my earlier statements according to a member of Somali parliament who seems to know few things about the oil and gas issue.

He said these agents like coastal explorations and others are front companies rapresenting big companies like Shell and Chevron. He siad because of the political situation in Somalia including Al-dhbaab war, the big companies with hundreds of billions of assets do not want to expose themselves to bad publicity and regfional conflicts and through this minor players they want to have access for the future.

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Toosan-1 oil well which is planned to be drilled in 2023 contains around 100 to 200 MMbbls of Oil. 

This Well alone could produce 50 thousand barrels of oil per day for 10 years, or over $100 million dollars per month at current prices.

About 500 Oil-tanker Trucks will be shuttling oil between Toosan-1 and the Oil Depot at Port of Berbera. CPC Taiwan is building the Oil Depot in Berbera where they are the sole buyer of all the oil produced by Somaliland. 

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On 11/21/2022 at 8:44 PM, baala xoofto said:

Toosan-1 oil well which is planned to be drilled in 2023 contains around 100 to 200 MMbbls of Oil. 

This Well alone could produce 50 thousand barrels of oil per day for 10 years, or over $100 million dollars per month at current prices.

About 500 Oil-tanker Trucks will be shuttling oil between Toosan-1 and the Oil Depot at Port of Berbera. CPC Taiwan is building the Oil Depot in Berbera where they are the sole buyer of all the oil produced by Somaliland. 

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That's close to 20 to 30 billion U.S dollars. I hope this investment does into infrastructure and turns Somaliland into a modern country. 

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