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British oil giant British Petroleum signed concessions with the Petrol Department for the Somali Federal Republic to explore oil and gas in the war raven East African nation.

Intelligence reports existence of significantly large oil deposits in Somalia which could change global prices if tapped.

The Somali shores of Indian Ocean could be having some of the worlds largest oil deposits.

Experts geographical assessments point out billions of oil barrels are reserved untapped in Somalia.

Intelligence collected by Strategic Intelligence shows Somali Puntland province has 10bn barrels of oil reserves, making one of the top 20 countries holding oil.

A company that drilled wells in Puntland estimate 4bn barrels (about $500bn worth at today’s prices) in its two discoveries in Somalia.

If drilled, Somali oil would flood the market beating countries like Nigeria and Kuwait to make Somalia the 7th largest oil producer in the world.

And then the penny drops...

If somalis can't function and get along already, what good are petrodollars going to do but add more fuel to the fire and pollute the environment. Also, google "resource curse".

As long as the Oil is in the peaceful cultured Northeast we shouldn't have any problems.

LiquidHYDROGEN wrote:And then the penny drops...

If somalis can't function and get along already, what good are petrodollars going to do but add more fuel to the fire and pollute the environment. Also, google "resource curse".

That's the biggest challenge to overcome. But I think we can go past this mentality and start building the country again insallah. The oil finds can maybe be a miracle in disguise allowing us to develop fast and catch up after 20 years of war. I think we should follow the Norwegian system of managing their oil, although they don't use the money a lot it doesn't contribute the majority of its economy like the Gulf countries where like 90% of its trade is oil. Somalia can diversify its economy as we have been blessed with a lot of other abundant natural resources as well and once developed we can try to develop the service, manufacturing and Tourism industries.

There are a lot of potential success but for it to work we need a strong political system. What we have now is a very weak system and with oil money coming through it can only worsen with corruption and political interference from other countries like in the arabaha. The rest of Somalia should follow Somaliland example and set up their own political system and agree themselves.

knet wrote:As long as the Oil is in the peaceful cultured Northeast we shouldn't have any problems.

.

Same old news, Look a similar article was written about 15 months ago.

http://www.theguardian.com/world/2012/f ... sh-somalia