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Somali PM ‘unaware’ of Chinese oil deal

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Somali PM ‘unaware’ of Chinese oil deal

By Barney Jopson in Nairobi

 

Published: July 16 2007 18:36 | Last updated: July 16 2007 18:36

 

Somalia’s interim prime minister has sought to distance himself from a decision to grant oil exploration rights to CNOOC, indicating that the Chinese state oil giant may have become entangled in an internal power struggle within the interim government.

 

CNOOC and a smaller group, China International Oil and Gas, are planning to begin survey work in the Puntland province later this year – the latest example of China’s willingness to brave Africa’s most volatile regions in search of natural resources.

 

But Ali Mohamed Gedi, prime minister, told the Financial Times he had not seen the agreement granting the Chinese groups exploration rights. “I’m not aware of this. I don’t know anything about it,” he said in an interview in Nairobi.

 

He added that no valid deals could be struck until the country’s interim parliament had endorsed a new oil law due to be published in the next two months.

 

The FT, however, has seen a document signed by president Abdullahi Yusuf Ahmed, who is from Puntland, that granted two Somali officials power of attorney to sign a production-sharing agreement with CNOOC Africa and CIOG in Beijing on May 24 last year. At the time, the transitional government had little authority outside its base in Baidoa.

 

Last month Somalia’s energy minister met with the heads of CNOOC Africa and CIOG in Nairobi to hammer out the details of their planned survey work.

 

One western diplomat who follows Somalia said it would be no surprise to find the president and prime minister working independently of each other. “They don’t really get on. They’re from different clans,” he said. “They have differences and divergences, but they tolerate each other.”

 

CNOOC in Beijing last week declined to comment on any aspect of the deal over exploration rights.

 

Mr Gedi on Monday emphasised the importance of putting a national oil law in place. “There are many companies interested in exploring oil and gas in Somalia, but in order to protect the wealth of the country and the interests of the Somali people, we cannot operate without a regulatory body, without rules and regulations,” he said.

 

He was aware of “informal contacts” between his government and oil companies, including Chinese groups and some of the western oil groups that held exploration concessions in the 1980s.

 

Asked how oil groups would feel about one of their rivals striking a deal ahead of the oil law, he said: “Life is up and down. Today yes, tomorrow no. Tomorrow yes, the day after, no. But I believe those who are interested in the oil business in Somalia will be received after the petrol law is endorsed by parliament.”

 

In the late 1980s exploration concessions were held by companies including Conoco and Phillips, which have merged; Amoco, now part of BP; and Chevron. These groups left the country after dictator Mohamed Siad Barre was overthrown during civil war in 1991.

 

According to the US Energy Information Administration, Somalia has no proven oil reserves and only 200bn cubic feet of proven natural gas reserves, which have not been tapped.

 

But Range Resources, an oil group listed in Sydney, estimates that the Puntland province has the potential to yield 5bn-10bn barrels of oil.

 

 

Source

 

 

And the saga continues

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Juuje, Three scenarios possible out of this weird development.

 

The first scenario is that it could be true that Gedi has really no idea about this Chinese deal. I am inclined to think that way as well. He is not the sharpest knife in the Kitchen, I mean he & his President had no say in the invasion & they heard about air bombardments in their country through the media. So, it is possible that he really has no knowledge about this.

 

Secondly, I think Geedi is playing dumb and acting Coy with the Americans here, but that’s a far fetched since he is not a man known to be independent

 

Third scenario ,which I believe is what really happened, is that the TFG(Or Ethiopia or America, who ever calls the shots in Somalia) realized that granting an oil contract to China was not a smart idea. Geedi was ordered to deny the existence of such a contract in order to question the legality of the contract and thereby cancel the whole thing. America is not dumb to let China have the exploration rights while they did the dirty work, no they are not dumb sir.

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Juje   

I assume it is a combination of #1 & #2.

However it shows you that there is no clear working relation at the top of TFG.

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^^^looool. Geedi was against the Range deal and we know how that played out. Now he is against this, lets suppose he is which we do not know since we have not heard from him. What will be the outcome? Ohhh the same as before.

 

The Chinese are hungry for oil and this is a great step forward. They have proven their abilities in the Sudan.

 

If North Mudug[which will not be explored by Range] has oil, LNG or other minerals, it will be great for the locals in Puntland as well as Somali's every where,

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Originally posted by The Duke:

^^^looool. Geedi was against the Range deal and we know how that played out. Now he is against this, lets suppose he is which we do not know since we have not heard from him. What will be the outcome? Ohhh the same as before.

 

The Chinese are hungry for oil and this is a great step forward. They have proven their abilities in the Sudan.

 

If North Mudug[which will not be explored by Range] has oil, LNG or other minerals, it will be great for the locals in Puntland as well as Somali's every where,

Geeljire,Ditto!,if Duke endorses this,Then Scenario 1 it is. This is a Yey & his Puntland cronies deal,looks like Geedi & his clan are clueless then.

smile.gif

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Abwaan   

loool...at Geeddi I wonder inay daacadnimo ka tahay iyo nidaam la ilaalinayo..Mise aniga lacag badan iyo deal halla i siiyo oo halla isoo maro bay ka tahay?

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Geeljire,Ditto!,if Duke endorses this,Then Scenario 1 it is. This is a Yey & his Puntland cronies deal,looks like Geedi & his clan are clueless then.

Adeer is that why you were so unhappy that the Puntland folk might benefit. Thats disturbing adeer. As we all know this benefits everyone. Why are you against any progress, talks, business deals. All you seem to root for is war, bombings and so on :confused:

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^No adeer,Am flabbergasted by the sheer stupid1ty & unstatemanship behaviour displayed by the Unhonourable PM.

 

What kind of a govt leader is unaware of such a megadeal?,surely only a Puppet head of state will, in my opinion smile.gif

 

Why are you against any progress, talks, business deals. All you seem to root for is war, bombings and so on

Well if i supported what you are saying,that would make a TFG supporter,DUH!!

 

Anyway,adeer stop being difficult yaa,you I am only against Shady illegal deals that seem to benefit one person. I have never been against talks,I am just against talks by one group of people aimed at legitimizing an occupation & i am for war & bombings against Tigre invadors,quite clear of a deal yaa Duke smile.gif

 

Now,stop diverting the topic about the stooge PM

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Adeer you amde your feelings clear next time dont let us read your mind. Be careful.

Ala yaa cizak, Waa Duke oo kululaaday,Adeer,I know things are going elephant for the president but anu haa igu sambiriin yaah. :D

 

As for Geedi, who cares?

Bal eega ninkani,Loool. Geedi maxaa iga galay kulaha,isnt he the Prime Minister? LOL

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^^^Adeer Geedi is an excuse for you people, to me he is the PM who was selected by Yusuf, thus he knows his place.

 

As for this types of deals, its bigger than Yey or Geedi, this is great for Somali people as a whole.Its benefit will be felt by the next admins of the counry and the people. Hence I do not get your whole anger, other than you do not want a certain region to benefit.

 

I have said again be careful Farax dont let the mask slip again. ;)

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Juje   

Originally posted by The Duke:

If North Mudug[which will not be explored by Range] has oil, LNG or other minerals, it will be great for the locals in Puntland as well as Somali's every where,

Saxiibo horta cuqdaad aya ka buxda ee Allah ka daweyo. Mida kale, even if diamonds are explored and found in abundance in North Galkacyo - it is a joy and wonderful. But that is not under scrutiny. What raises doubt in here , as stated by FT, is level of un-cooperation amid the PM and Yeey. hence reflecting lack of coherence. Thus I was waiting for you to logically debate on that ground but you showed that you are utterly biased and over ridden by your tribal nature and you clearly showed in this statement

As for Geedi, who cares?

.

Saxiibo is daba qabo inta aan lagu qaban. :D

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Abwaan   

Originally posted by The Duke:

As for Geedi, who cares?

looooooool...........qofka sidaan leh ma Duke baa? Wax baa is bedelay... no one does sxb except Meles laakiin waa sii soconaysaa geedda Geeddi lee kuma ekaanayso.

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