exploration very un stable in puntland range

Somalia: Puntland's exploration strategy in the face of growing instability
30 Nov 30, 2007 - 9:12:11 PM



EDITORIAL | Exploration is a national issue in Somalia, which rises above local politics and is well out of range of any clan elder's authority.

As Somalia becomes increasingly unstable, local rulers and their foreign partners are gearing up for the monumental task of exploring for oil and other resources, notwithstanding foreseeable obstacles along the long road. Leading the political push in the search for oil is Gen. Mohamud "Adde" Muse, leader of the semiautonomous regional government of Puntland. Since mid-2005, Gen. Muse has entertained local citizens and the world alike with fantastic dreams of one day finding oil under Somali soil, and of one day building up a prosperous society, saved at last from the economic disaster incurred upon the country since the 1990s.

Nearly two-and-a-half years later, Gen. Muse faces much the same dilemmas he faced when he first signed onto an agreement with Consort Private, Ltd., a shadowy firm registered in the Maldives. Rumors swirled about that some Puntland government ministers were shareowners in the company. Soon enough, the small company sold the majority of its Puntland fortunes to minor explorer Range Resources, Ltd., exclusively giving the Australian firm all mineral and oil exploration rights in the whole of Puntland (an area approximately 212,000 square kilometers).

In turn, Range found another bold partner willing to take on the risky Puntland operation. Africa Oil Corp., based in Canada, became the third leg to join the Puntland-Range deal. The company's executives visited the capital of Puntland, Garowe, earlier this month for the first time since enlisting onto the operation.

But locals and many observers continue to look at efforts to explore for resources in Somalia with mounting suspicion, especially in light of the serious political ramifications that come naturally with such a complex subject matter. For example, there are major financial discrepancies between Range's report to its investors and the budget submitted by the Garowe administration to the Puntland Parliament.


Lawmakers rejected the Muse government's budget, which was completely missing funds donated to the Garowe airport construction project by Range among other things. The funds, Range claims, totaled $US591,000 in 2006 alone. But the Puntland government held a fancy photo-op showing Garowe clan elders standing with Range company representatives and a holding a big check for $US250,000.

Furthermore, Prof. Ali Mohamed Gedi, the former Prime Minister of Somalia's transitional federal government (TFG), recently said the rift between him and President Abdullahi Yusuf was rooted in disagreements over the management of the country's resources. Gedi was a staunch opponent of the Puntland-Range deal, on grounds that only the federal government has the authority to enter into international agreements. But Gen. Muse administration continued with its exploration agenda, culminating with the visit of Africa Oil's corporate executives to Garowe.

Gedi is now gone and many wonder if his replacement, interim Prime Minister Nur "Adde" Hassan Hussein, will concede to President Yusuf's hidden wishes or stand up for the federal constitution. Several major obstacles have prevented these foreign companies from exploring/exploiting Puntland's rumored natural resources wealth, including the lack of legitimacy, armed resistance from some local clans and the agreement itself which falls short of international standards.


Lately, Gen. Muse's idea of gaining "local support" seems to center around inviting Garowe clan elders to meetings with oil executives. During Africa Oil's November trip to Puntland, two Garowe clan elders participated at the meeting where the company's intentions and plans were discussed. Pictures were taken and distributed via the World Wide Web, all the way to Australia and Canada, informing current and would-be investors that the Puntland operation enjoys "local support."

But the fact of the matter remains that exploration is a contentious and dangerous endeavor in Somalia, a country where a forgotten war rages between the TFG, backed by the Ethiopian army, and Islamist rebels bent on overthrowing the current regime. It would be a fatal mistake to translate the presence of Garowe clan elders at the Puntland-Africa Oil meeting as compelling "local support" for the exploration agenda.

Exploration is a national issue in Somalia, which rises above local politics and is well out of range of any clan elder's authority. A national petroleum law, which was rightly pursued by former Prime Minister Gedi, must be implemented in Somalia before any company can begin drilling. The distribution of resources and wealth must be agreed upon by all Somalis, specifically outlining a balance of sharing between the federal and regional governments. But the fact that the Puntland administration and its foreign partners are overtly pushing forward with drilling plans suggests that the TFG is either complicit in this affair, or its careless.

Somalia cannot afford any more wars. Many Puntland clans have shown violent contempt for any attempt to explore their land without their tacit approval. Gen. Muse's ambitious ego initially fueled him to claim that he can sign off clan lands in the name of Puntland, although no such authority is given to the regional president anywhere in the Puntland constitution. He can concede his original sin, or risk turning once-stable Puntland into a fiefdom of lawlessness.
agenda, culminating with the visit of Africa Oil's corporate executives to Garowe.

Gedi is now gone and many wonder if his replacement, interim Prime Minister Nur "Adde" Hassan Hussein, will concede to President Yusuf's hidden wishes or stand up for the federal constitution. Several major obstacles have prevented these foreign companies from exploring/exploiting Puntland's rumored natural resources wealth, including the lack of legitimacy, armed resistance from some local clans and the agreement itself which falls short of international standards.


Lately, Gen. Muse's idea of gaining "local support" seems to center around inviting Garowe clan elders to meetings with oil executives. During Africa Oil's November trip to Puntland, two Garowe clan elders participated at the meeting where the company's intentions and plans were discussed. Pictures were taken and distributed via the World Wide Web, all the way to Australia and Canada, informing current and would-be investors that the Puntland operation enjoys "local support."

But the fact of the matter remains that exploration is a contentious and dangerous endeavor in Somalia, a country where a forgotten war rages between the TFG, backed by the Ethiopian army, and Islamist rebels bent on overthrowing the current regime. It would be a fatal mistake to translate the presence of Garowe clan elders at the Puntland-Africa Oil meeting as compelling "local support" for the exploration agenda.

Exploration is a national issue in Somalia, which rises above local politics and is well out of range of any clan elder's authority. A national petroleum law, which was rightly pursued by former Prime Minister Gedi, must be implemented in Somalia before any company can begin drilling. The distribution of resources and wealth must be agreed upon by all Somalis, specifically outlining a balance of sharing between the federal and regional governments. But the fact that the Puntland administration and its foreign partners are overtly pushing forward with drilling plans suggests that the TFG is either complicit in this affair, or its careless.

Somalia cannot afford any more wars. Many Puntland clans have shown violent contempt for any attempt to explore their land without their tacit approval. Gen. Muse's ambitious ego initially fueled him to claim that he can sign off clan lands in the name of Puntland, although no such authority is given to the regional president anywhere in the Puntland constitution. He can concede his original sin, or risk turning once-stable Puntland into a fiefdom of lawlessness.