CHRONOLOGY OF SOMALIA’S OIL
AND GAS EXPLORATION AGREEMENTS
The many theatrical mineral exploration developments that took place
during the 1980s did not deter the Puntland administration from committing
itself to arrange agreements with foreign firms. The exploration plans of
just one Australian mining company, Range Resources Ltd, have
overwhelmingly dominated the activities of Puntland administration, led by
Mohamud Muse Hersi. From the outset, these activities do resemble of the
numerous contractual arrangements that have been made by a couple of
foreign investors during the 1980s.
However, Puntland exploration attempts differ radically from that of
former Somali Democratic Republic’s (SDR) arrangements in terms of
negotiation skills. Puntland is experiencing shortages of technical
assistances from other oil and gas producing countries/and international
organizations since it is not an independent/and recognized entity. This
fact has resulted in negotiation skills deficiency. Negotiation skills
which are crucial component in the bargaining table could only have
guaranteed concession agreements favourable to Puntland.
As many scholars wrote, almost all “concession agreements” are kept in the
files of the host governments’ advisors. In the case of Puntland,
President Mohamud Muse Hersi’s former advisor, Sam Jonah, is currently
serving as the non-executive chairman of Range board. Moreover, you rarely
see, as scholars observed, any concession agreements that are published.
It is also noteworthy to mention that Roobdoon Forum is uninformed or not
knowledgeable of any Investment Policy that protects the sovereignty and
control of Puntland territories, in case of concession agreement disputes
between the host and investor. However, the Forum is aware of the
existence of SDR Foreign Investment Law that provides this clause:
“property of the enterprises registered in Somalia is free from
expropriation measures except in the case of public interest.” Finally, to
reflect the current developments in Puntland, the Forum posts excerpts of
news-coverage on the issue of concession agreements between former SDR and
foreign explorers. These agreements have taken the center stage of the
1980s Somali politics.
J A N U A R Y 1986 - 1990
CHEVRON INTERNATIONAL SIGNS OIL EXPLORATION AGREEMENT WITH SOMALIA
31 January 1986
CHEVRON INTERNATIONAL SIGNS CONCESSION AGREEMENT WITH SOMALIA
SAN FRANCISCO, Jan. 31 /PRNewswire/ -- Chevron International Ltd.,
a wholly owned subsidiary of Chevron Corp., today announced the signing of
a concession agreement with the government of the Somali Democratic
Republic. The oil exploration agreement covers a three-block area in the
Guban area of northern Somalia.
The concession blocks lie along the northwest coast of Somalia,
both onshore and offshore extending into the Gulf of Aden. The concession
encompasses approximately 40,509 sq. km., or 10,009,744 acres.
Geophysical surveys will be undertaken during the first two years of the
concession term, with exploratory drilling to follow.
Copyright PR Newswire 1986 wire
OIL EXPLORATION AGREEMENT WITH CONOCO
8 July 1986
An oil exploration agreement was signed today between the SDR and Conoco
Inc of the USA. The agreement stipulates that 98,700 sq.km. in Nogal,
Sool and Togdher regions of Somalia will be subject to exploration.
The Somali Minister for Mineral and Water Resources, Jaalle Ahmad
Mahmud Farah, who is also a member of the political committee of the
SRSP (Somali Revolutionary Socialist Party) Central Committee, signed on
behalf of Somalia and Mr (?Raymond), the company's representative,
who will be based in Somalia signed on behalf of his company. The Minister
and the representative also discussed how the exploration will be carried
out. Present during the occasion were the Deputy Minister of Mineral and
Water Resources, Eng Mahmud Shaykh Mursal, and the Permanent Secretary in
that Ministry, Jaalle Muhammad Umar (?Asad). (Mogadishu in Somali 1115 gmt
17 Jun 86)
©1986 The British Broadcasting Corporation
AMOCO SOMALIA PETROLEUM CO. SIGNS AGREEMENT WITH THE GOVERNMENT OF
SOMALI DEMOCRATIC REPUBLIC FOR ONSHORE PETROLEUM EXPLORATION.
5 May 1987
MOGADISHU, Somalia, May 5 /PRNewswire/ -- Amoco Somalia Petroleum
Company has signed a concession agreement with the government of the
Somali Democratic Republic for onshore petroleum exploration
covering 35,091 square kilometers (8.67 million acres).
The acreage is in Blocks 6, 9, and 12, north and southwest of Mogadishu.
Block 6 has 12,347 square kilometers (3.05 million acres), block 9 has
9,515 square kilometers (2.35 million acres), and block 12 has 13,229
square kilometers (3.27 million acres).
The concession agreement includes an initial three-year exploration period
with rights of extension for three additional one-year periods, upon
satisfaction of certain minimum work and estimated expenditure obligations.
The concession agreement provides for aeromagnetic, gravity, seismic and
drilling activities. Operations will begin within the next three months.
The minister for mineral and water resources, Ahmed Mohamoud Farah,
signed the agreement for the government. Charles H. Moerbe, vice president
of Amoco Somalia, signed for Amoco.
Amoco Somalia is a subsidiary of Amoco Production Company, the worldwide
exploration and production subsidiary of Amoco Corporation.
© Copyright PR Newswire 1987 wire
DUPONT UNIT EXPANDS OIL EXPLORATION IN SOMALIA
19 October 1988
NEW YORK, Oct 18, Reuter - Dupont unit Conoco Inc said it signed a
20 million dollar deal with the Somali government to expand its oil
exploration activities in northeastern Somalia.
A spokesman for the company said the agreement, signed October 16,
committed Conoco to invest at least 20 million dollars in blocks 33 and
34 in the Northeastern section of Somalia.
According to a report on state-run Radio Mogadishu on Monday, Conoco is
committed to exploration in the Bari, Sool and Nugal regions of
northeastern Somalia over the next three years.
The broadcast, which was monitored by the British Broadcasting
Corporation, BBC, said the agreement was signed in Mogadishu on Sunday and
exploration work would begin in three months.
The spokesman for Conoco said the company's exploration plans were in the
initial phases of development. Conoco has been prospecting for oil in
northern Somalia since 1986.
Another U.S. company, Amoco Corp, and the Italian firm Agip SpA are
also exploring for oil in the region.
© 1988 Reuters Limited
PARKER LANDS MAJOR CONTRACT IN SOMALIA
6 September 1989
TULSA, Okla., Sept. 6 /PRNewswire/ -- Parker Drilling Co. (NYSE:
PKD) today announced a subsidiary has been awarded a major drilling
contract in Somalia.
Conoco Somalia Ltd. has awarded Parker Drilling Co. Eastern
Hemisphere Ltd., a long-term contract to drill exploratory wells in the
remote Las Anod desert region of the East African nation. As a result
of the contract, Parker has re-opened a division office in the capital
city of Mogadishu.
"Parker is grateful to again be returning to this important country," said
Robert L. Parker Jr., president and chief operating officer. "We are
especially pleased to renew our good relationships with the various Somali
officials," he added.
Parker's versatile TBA 2000 Rig 195 is being mobilized for the contract.
The rig, presently idle in the Sudan, is being trucked to Port Sudan. From
there, it will proceed by barge to the northern Somalia port city of
Bosaso and then transferred to trucks for the 430-mile, cross-desert
trip to Conoco's initial location. From the Kenya port of Mombasa, other
Parker camp facilities and equipment are being barged to Bosaso as well.
Wayne Hazelwood, a Parker employee who last worked in Somalia in 1986, has
been named operations manager for the project. Spudding is expected to
take place Nov. 15.
Parker is a worldwide oil and gas drilling contractor with operations in
© 1989, PR Newswire
International PHILLIPS Signs Exploration Pact with Somalia For
29 November 1989
Oklahoma City 11/28 -- Phillips Petroleum International Corp.
Somalia has signed a concession agreement with the Somali Democratic
Republic to explore for oil and gas on a 3.5-million acre onshore block,
the company announced today.
Under the terms of the agreement Phillips is granted an initial
exploration period of two years. After that time, it has the option to
extend the concession for additional periods of one year each. Phillips
plans to begin seismic work during the first quarter of 1990. No further
details were given.
Phillips holds 100% interest on the acreage. The company now has interests
in about 9.6-million acres in Somalia. It's currently working on a wildcat
well in Somalia, in association with Conoco. The well is on a separate
block. Currently there is no oil or gas production in the country.
About 50 wells have been drilled there, a Phillips spokesman said.
© Copyright 1989 McGraw-Hill, Inc.
MOBIL, SHELL SET SOMALIA EXPLORATION
30 August 1990
FAIRFAX, Va., Aug 30, Reuter - Mobil Corp said its Mobil
Exploration Somalia Inc affiliate signed a joint venture agreement with
Pecten Somalia Co, a Shell Oil Co subsidiary, to explore a block in
the Indian Ocean offshore Somali.
The concession area was awarded to Pecten in 1988. As operator, it has
already conducted extensive seismic evaluation of the 14.9 million acre
block. Pecten's parent is a subsidiary of the Royal Dutch/Shell Group.
Mobil said it and Pecten will equally share the exploration risk and any
resulting production. They expect to drill the first wildcat well early
© 1990 Reuters Limited