Saying Puntland is the safest of all Somalian provinces is not really saying much. I wouldn't want to go to anywhere in Somalia on holiday. I wouldn't feel safe walking the streets in any Somalian province. Yeah, if I had to go, I'd prefer to be in Puntland than Mogadishu, but there's a reason armed guards were protecting AOI when seismic was done, and why security has been such a problem when it comes to getting the rig in and finally drilling. The place isn't 'safe' by western standards at all. It's still one of the most dangerous locations on Earth. Al Shabab have been operating in Puntland recently. The fact there's an even more dangerous province next door doesn't suddenly make Puntland safe.
The market does apply discounts for political danger, and if the market does, you can bet a potential buyer will if oil is found. Given it's Range's plan to sell out of Puntland when they've proved a decent amount, these things are worth considering.
RRS Price at posting:
18.5¢ Sentiment: None Disclosure: Not Held
