Shell, Mogadishu and Puntland Region

[Hawdian]

The looming conflict between Somalia's weak government that controls only few blocks in Mogadishu and the Puntland Region should be regional and international concern. Despite only controlling few blocks in Mogadishu with the help of more than 17,000 foreign troops, the mostly Hawiye dominated administration in Mogadishu is taking very dangerous steps to provoke otherwise peaceful regions such as Puntland.



The recent oil deal between Mogadishu and the Anglo-Dutch, Royal Dutch Shell plc, is likely going to spark fresh conflict that is likely going to destabilize the whole region. The United Nations is yet to understand the full implication and likely scenario.

The Somali community both in the country and abroad have learned with grave concern Shell's plans to arm one tribe in south-central Somalia against the other and further aid will come from its partner for the project, ExxonMobil.

The Puntland Government has so far responded and urged Shell and the likes not to spark fresh conflict in the Somali Peninsula. During Siad Barre's regime, such company played vital role in the destabilization of Somalia and the eventual collapse of the state. It should not be making the same mistake once again. Many Somali groups especially in the north took arms against such shady deals more than 25 years ago. Today is not any different.

If they wish to return, they should do so by legal means and through the appropriate venues and administrations. Not repeat the same mistake.

Puntland has made her stance clear to local stalk holders, regional leaders and the international community. It is such a volatile situation.

Puntland rejects oil deal with Shell and ExxonMobil

Somalia's semi-autonomous north-eastern state of Puntland has rejected a deal signed between the federal government and two oil firms, Shell and ExxonMobil.

The Director General of the Ministry of Mineral Resources and Petrol for Puntland, Mr Issa Mohamoud Farah alias Dollawaa, made the announcement in an interview with the BBC.

Mr Farah, who was talking on the BBC-Somali Service on Sunday, was reacting to the contract details as spelt out by the federal government's Director General for Petroleum and Mineral Resources, Mr Farah Abdi Hassan, on the same channel a day earlier.

Mr Hassan had said that his administration entered into an agreement in The Hague in the Netherlands with Shell and ExxonMobil, two giant fuel companies.

But Mr Farah stated on Sunday that the Federal Government of Somalia (FGS) could not unilaterally enter into accords with companies dealing with natural resources.

He indicated that his objection derived from the fact that the accord illustrated that exploration and exploitation would be extended to territories controlled by the Puntland authority.

Mr Farah underlined that Puntland had already entered into agreements with foreign companies on fuel exploration and exploitation, asserting that it would continue engaging the same firms.

The provisional constitution of Somalia, Mr Farah explained, stated that FGS could not unilaterally enter into agreements with companies without the consent of the constituent states.

“Puntland rejects any such agreement entered (by FGS) because we were not consulted on the matter,” said Mr Farah.

A referendum

However, he acknowledged that Puntland was part and parcel of FGS.

“FGS made a mistake by solely entering into an accord on matters dealing with natural resources,” remarked Mr Farah.

He added: “The Federal Government of Somalia does not govern over Puntland and all accords should be postponed until all states agree on how to share the country’s natural resources.”

Parts of Somalia such Puntland and Somaliland have formed their own states while others, especially in the southern and central areas, continue to be affected by the ongoing civil strife.

In September 2012, the Transitional Federal Government that had ruled Somalia for eight years (2004-2012) ceased to exist.

A post-transitional federal government with Hassan Sheikh Mohamoud as its president with wider international recognition, was formed.

However, the constitution remains provisional and was being reviewed by the federal parliament, government and committees.

It is envisaged to be fully adopted trough a referendum in 2016.

While Puntland and other states consider themselves part of the federal government, Somaliland self-declared independence in 1991, but the region has not been recognised by the international community.

The Shady deal by the Hawiye administration, Shell and ExxonMobil

Federal Republic of Somalia hold discussions with Shell and ExxonMobil in The Hague

On Friday 13 June 2014, His Excellency Minister Daud Mohamed Omar, Minister of Petroleum and Mineral Resources of the Federal Republic of Somalia visited the headquarters of Shell in The Hague, The Netherlands. This is the first meeting between Minister Omar and Shell.

The Minister was in The Hague at the invite of Shell EP Somalia B.V. (“Shell”) who was awarded a concession for five blocks (Blocks M3-M7)* offshore Somalia in 1988. Mobil Exploration Somalia Inc. (“ExxonMobil”) subsequently joined the concession as a 50% joint venture partner. The parties have now begun discussions with the Ministry with the aim to convert the existing concession (which has been under force majeure since 1990) to a Production Sharing Agreement (PSA) as called for by the 2008 Petroleum Law.

The Federal Republic of Somalia has welcomed these initial engagements with Shell and ExxonMobil. The joint venture partners will continue discussions on areas of cooperation and the potential for exploring and developing hydrocarbon resources offshore Somalia. It is the parties’ hope that these discussions will help pave the way towards the long term development of a sustainable oil and gas industry for Somalia, a key building block in the rebuilding of its economy.

Minister Daud Mohamed Omar said: “We are encouraged by the work that Shell and ExxonMobil are doing, and are keen to discuss the way forward on their offshore blocks. It is our hope that the joint venture will soon be able to start exploration and development activities in the country, and we believe these discussions are the first step in this process. I would hope to welcome Shell and ExxonMobil to visit Mogadishu in the near future.”

Shell Vice President of Exploration for Sub Saharan Africa, Alastair Milne said: “I am pleased that the Federal Government of Somalia clearly recognises the rights of existing concession holders such as Shell and ExxonMobil, and I am delighted that progress is being made in relation to our acreage.”

ENDS

For further information contact:

Ministry of Petroleum & Mineral Resources,
Federal Government of Somalia
+25261-5522003
+25261-8474935

Shell Media Enquiries
+44 (0) 207 934 5550

[Chinaman]

The Hutu government can't do shit. The whole maamul (if you can call it that) as everyone knows is surviving on Amisom soldiers and the little they control. The official Puntland position is that the modern day Somalia is built on Federalism and what was agreed upon in the constitution including how resources are managed. The SFG has no right to sign off blocks in Puntland's territories as it is, specially with the fact that it has not even consulted the Puntland government about any of this.

Any change to the core principles of Federalism and the Constitution means that Puntland has the full right to consider all other options including Secession. This is actually great, it'll help to wake up the gullible Puntladers some of which are very pro-Xamar and hopefully in the near future we'll break up this dead and buried country which has been dead for over 20 years. Iraq's current incident has been going on for just a few months and already there is talk of possibly breaking it down to Kurd-Sunni-Shia yet Somalia (mainly because we aren't as import as we think of ourselves) has been forced for years and years now to still maintain this fake ass unity smh


Can you actually imagine if we take out Somaliland for now, a Puntland dominated north and a Hawiye dominated south sharing a country together properly Sounds almost laughable.

[thegoodshepherd]

Puntland replies to SFG

[AbdiWahab252]

Hawdian is jealous because only Mickey Mouse operators are interested in his tribal land. I hope the BP fellow doesnt trash your turf like he trashed the Gulf of Mexico