press release in full

Press Releases

Somalia: Puntland Petroleum Agency on Range Resource
8 Jun 8, 2009 - 1:12:01 PM



Puntland Petroleum and Mineral Agency.

Ref: XAG//WSHM/G/23

Date:- 08/06/09

Press Release

The Puntland Petroleum and Mineral Agency (the Agency) would like to state that the Africa Oil Corp (AOC) and Range Resources (Range), as partners, have Production Sharing Agreements with the Puntland Government. The former Puntland administration signed these Production Sharing Agreements (PSA) with the above named companies in mid January 2007. In addition, Range has a Contract of Work (CoW) with the Puntland Government. This is the fact of this mater. The current administration accepts in principle all these agreements and confirms in accordance with previously stated Government policy that it is reviewing all current agreements including the PSAs and all operations conducted by these two companies.

The Agency that I oversee inherited the responsibilities of the previous administration’s Ministry of Petroleum and Minerals. In accordance with the current Government’s policy of transparency and openness in Governance I confirm the Agency have had a meeting with Range and planning to have another meeting, in the near future, with AOC in order to review past operations and discuss potential future operations in Puntland.

This is part of the Agency’s efforts to confirm whether or not that both companies have fulfilled their legal and fiscal obligations within the PSA. The outcome of this review will be released formally by the Government when it is complete. An open and transparent review of all past and future operations is an important step being undertaken in the interests of the people of Puntland the companies and their shareholders, in particular those in Australia and Canada.

As a result of this clear cut policy, early last week the Agency and Ministers from the Puntland Government held its first meeting with Peter Landau, the CEO of Range Resources. The discussion was about Range’s past and current operations as well as its future plans in Puntland. The meeting was cordial and productive for all attendees. The Agency is hopeful that it will have a similar meeting in Garowe, Puntland with Africa Oil Corp representatives in the near future.

The Agency refutes recent media reports that at the meetings Peter Landau said that AOC has “violated the PSA”. The Agency categorically states that if and when any company “breaches” or “violates” any part of the agreement it is the responsibility of the Agency and its legal advisers to bring this breach to the attention directly and privately of the concerned parties including in the first instance the Government of Puntland. Any information suggesting that “a company breached or violated its legal obligations” should be viewed with caution unless specifically stated by the Agency.

Until such time as the current reviews are complete we urge all media outlets to refrain from baseless and inflammatory statements that undermine the transparent and open process of review being undertaken by this administration on behalf of the Puntland people.

Issa Mohamud Farah
General Director
Puntland Petroleum and Mineral Agency
Garowe, Puntland, Somalia.
Emails: [email protected]
[email protected]