Somaliland Minerals Ministry Starts Selling New Oil Blocks

[Xaaji Xunjuf]

 

 

Hargeysa, Somaliland, May 31, 2008 (SL Times) The Somaliland ministry of Water Mineral Resources has started awarding concessions to interested oil companies.

 

According to the director general of the ministry, Ahmed Ibrahim Suldan, a UK-based Norwegian owned company called Asante Oil has already purchased rights to a new oil block.

 

Mr. Suldan disclosed to Jamhuuriya newspaper on Friday that the deal with Asante Oil was negotiated during a recent trip that he and the minister of Water and Minerals Qassim Yusuf, have made to the UK and the USA.

 

It was only last month when Somaliland president Dahir Riyale Kahin told Reuters that one of his priorities for this year was an auction for oil exploration licenses pending the wrapping up of a data seismic survey by TGS-Nopec, a Norwegian oil service company.

 

In a subsequent statement issued also in April, the Somaliland ministry of Water and Mineral Resources said that the survey was completed and the data was being processed for an international bid round planned for late 2008.

 

The data acquired by TGS was not expected to be made available to clients before the third quarter of this year.

 

However in yesterday s Jamhuuriya interview, the director general of the MW&MR gave no explanation for what prompted the government to cut a deal with Asante Oil before the release of data survey results except to say that the company was eager to stay one jump ahead of others.

 

Mr. Suldan said that he hopes drilling for oil in Somaliland will commence by 2009.

 

He made no mention of the amount of money that Asante Oil agreed to pay for its acquisition in Somaliland.

 

The granting of concessions for oil and minerals exploration in Somaliland is often done in secrecy.

 

Only Minister Qassim is allowed to represent the Somaliland side in any negotiations concerning the financial aspects of such deals. All agreements however have to be endorsed by Qassim s boss, Riyale.

 

Under Qassim, the MW&MR is known to have signed about a dozen of oil and minerals exploration agreements with foreign firms and individuals. None of these agreements have been submitted to parliament for ratification as required by the Somaliland law.

 

Both Qassim and Riyale have so far paid no heed to repeated calls by the parliament that the administration should seek ratification for exploration agreements it had concluded with foreign companies.

 

Source: Somaliland Times

[Jacaylbaro]

Oil is a monkey business and i don't want Somaliland to go to that side. Not this time.

[Fabregas]

How much can I get for an oil block?

[nuune]

Oo dhulka dhanba ma wada Oil Blocks baa!