Resume Oil Exploration Operations Genel Energy to Resume Oil...

Resume Oil Exploration Operations Genel Energy to Resume Oil Exploration Operations after Reaching Deal with Somaliland Government[link] Mohamed GothSomaliland minister of foreign affairs Hon Mohamed Bihi Yunis and the minister of energy Hon Hussien Abdi Duale currently in London, UK have announced a new deal which will see the return of Genel energy to Somaliland a week after it suspended oil exploration operations.Hon Hussein Abdi Duale speaking during a press conference in London said “Talks between the government of Somaliland and Genel energy were positive and that the oil prospecting company will be resuming operations sooner rather than later.Hon Hussein during the press conference said The Turkish owned Genel energy is here to stay and has in the past one and half years accomplished much in laying down the groundwork of developing a sustainable oil industry through adopting close collaboration with both the people and government of Somaliland.The energy minister stated “Genel is not leaving Somaliland. The Government of Somaliland has been working closely with Genel for 14 months; during this time significant work has been accomplished in the development of the Somaliland oil industry. We continue to work with Genel to fulfill our shared aims, with a view to Somaliland’s oil reserves becoming the backbone of the Somaliland economy, enabling the country to develop and its people to become self-sufficient.The current temporary halt in operations is an opportunity to take the necessary steps to ensure planning comes into line with implementation, guaranteeing the partnership of Genel and the Government of Somaliland has a long and sustainable future.We are in close discussions with Genel regarding the steps that need to be taken prior to resumption of operations, and will continue to work hard with Genel to deal with each and every issue.’The energy minister also stated “We have given them (Genel)our words that their security is assured with us and that it has in the past 13 months done its oil exploration operations unabated in the prevailing peace in Somaliland. We also pledge to put in place the mechanism to resolve any future conflicts which may arise between the company and local residents in the area of its operations.The move by Genel energy had earlier casted a cloud on the newly discovered Somaliland oil potential as Genel energy had originally planned sizable investments in the blocks which were acquired by the company last year and hotly contested by aggressive small companies with limited financial resources which are eager to secure lucrative oil concessions from Somaliland government.The Somaliland government has in the past been criticized of not publicizing the contents of these concession contracts to the public or the Parliament, and neither of them is in a position to judge whether these contracts are fair and beneficial to the citizens of Somaliland.Given the limited knowledge and sophistication of Somaliland people relative to that of the international oil companies, it is very likely that any deal already negotiated with foreign companies will not favor the people.In August 2012, Genel was awarded an exploration license for onshore blocks SL-10-B and SL-13 in Somaliland, with a 75% working interest in both. Genel extended its presence in November 2012 with the acquisition of 50% participating interest in the Odewayne Production Sharing Agreement which covers blocks SL-6, SL-7, SL-10A.The total size of the blocks is approximately equivalent to the entire Kurdistan Region of Iraq.