NAIROBI (Reuters) – Somalia does not plan to nullify oil and gas exploration contracts made in recent years in favour of those that were signed prior to the toppling of the government in 1991, a senior state official said on Friday.

There are concerns by investors that deals signed by companies in Somalia could be affected now that it has a new government, after electing a new permanent president for the first time in over 20 years.

When the government of the Horn of African nation fell in 1991, around a dozen companies, including many multinational oil and gas majors, had licences to explore Somalia.

Abdullahi Dool, Somali’s deputy energy minister, said it was too soon for the country to decide how it would handle a tangle of exploration licences, which grant various companies rights to explore overlapping areas.

Dool said the country would not only honour contracts signed prior to 1991 with oil majors including Royal Dutch Shell, BP and Chevron, but also new ones.

He criticised comments by Abdullahi Haider, a senior adviser to Somalia’s Ministry of Energy, that only oil licences agreed before 1991 would be upheld.

“I don’t know why Mr. Haider is making these noises … Government makes the policy, not advisers,” Dool told Reuters via telephone from Mogadishu.

Though interest in exploring for hydrocarbons in east Africa has been high recently, as a result of big oil and gas discoveries in neighboring Kenya and other regional countries such as Uganda and Tanzania, Somalia has had a complicated relationship with companies looking to cash in on the boom.

In the past two decades, two semi-autonomous regions Puntland and Somaliland, have cropped up in the northern part of Somalia, and granted their own licences to explorers.

In some cases, they have awarded exploration contracts to separate companies to search the same swath of land.

Dool said any conflicting licence awards would be settled once a new Somali cabinet is in office by November 6.

“I’m sure all of this will be reviewed,” said Dool.

Independents, who have a high-risk tolerance and are small enough to cope with rapid change, such as Africa Oil and Horn Petroleum believe their contracts with regional Somali authorities will still remain valid.

“Horn Petroleum remains confident that our oil agreements continue to be valid,” said Keith Hill, chairman and CEO of Africa Oil and chairman of Horn Petroleum.

Source: Reuters


  1. Somaliland will not honor any contract signed pre or post 1991 by anyone other then the Legitimate Government elected by Somalilanders for Somaliland.

    Horn Petroleum Has been cheated by Faroole of Puntland how on earth could they expect a contract to be honer by an individual who is currently holding 216 Hostages and about 30Ships in puntland?

    🙂 There is no Oil in Puntland and if there is it will be managed from Moqadishu.


    • It seems you have no clue what are you talking or have any knowledge how world affairs operates.s/land is region it’s not a counrty nor it will be in The future.

      No oil company will ever invest any place That’s not recognition internationally.let me break for you piece by piece so you can understand.

      Oil is one of The most resourceful commodity in world.any company wants to sell it’s oil international market The buyers will ask The company, where This oil came from?.

      if There is no proper channel not back door one or real legal document recognize by OPEC (Organization of The Petroleum Exporting Countries),no one will bother to buy That oil because it’s illegal trade.

      • I am not surprised you and your ilk are in a mental and spiritual vegetative state since 1991. Oil is neither the be and all of development nor do the best economies on earth rely on oil.

        You harp on about Recognition in a manner that is to state the only REASON Somaliland should not be recognized is to sabotage it's developmental needs. That is so cowardly and so down right evil.

        May Allah(swt) give you people everything you wish on the innocent people of Somaliland. The oil in Somaliland belongs to Somalilanders and not 1 drop will be issued to anyone outside Somaliland borders.

        Siciid Shirdoon and Hassan Mahamoud have both agreed to continue to 2-STATE TALKS…

        Our independence is near 12-24Months.

  2. Somaliland region is under the jurisdiction of the Somali Republic and this is globally recognized by regional, continental and international bodies. It would be suicidal for companies to mislead their investors and listen to the voice of few people who are angry over Somalia's last dictator's action against rebels in the north in 1980s to before his downfall. It would be suicidal for companies to ignore the laws governed by societies in which many international countries will continue to honor whether signed under the auspices of the United Nations or on nation-to-nation bases.

    I would strongly advise oil companies not to become enemies of the Somali people in particular when they sit in a such strategic location not only for future oil explorations but also for oil route and vital trade routes.

    They should come here honoring international norms and laws and work with the Somali people through their government and legal system just like all nations otherwise when we target you don't be complaining.

    We have few angry in the north same way Australia has some Aboriginal groups who set up their own tent Embassy, same way we have Texan separatists in Texas….same way we have nationalist English groups who don't approve of the UK system.

    That does not mean we go deal with every angry minor group instead what you can do is help the big picture and deal with one huge market rather than villages and small market.

    It is not the interest of investors, international community nor the United Nations for oil companies to engage with illegal tribal mini states like Somaliland, Puntland and others.

    We did warn you once Somalia recovers all your hardwork and illegal deals will be thrown out of the windows. Not only is Somali government stronger, has all the support of international laws and bodies but also big oil companies such as Royal Dutch Shell, BP and Chevron have far more resources, big lawyers and big cash to force you to bankruptcy.

    Thus we urge investors to keep an eye on the so called Range Resources, Jacka Resources (ASX: JKA) and Red Emperor and urge them to withdraw their illegal and often waste of time explorations in Somalia.

    These companies already became associated with groups of special interest who are against law, stability and governance in Somalia. They are funding the pockets of warlords, pirates and separatists and thus this is misleading the general Somali public and unlike other ethnic groups and races, Somalis will drag anyone associated with such companies like Black Hawk Down.

    Investors must pull out their money unless such firms go through the proper channels which is the Somali government. Yes it is weak but it is the only legal body recognized internationally and if your house has weak security such as broken door, does that give thief and burglar the right to loot your house?

    This is no different.

    Do not be misled by few groups who think the mistakes of one dictator justifies their constant crying and selling fake contracts to small foreign firms.

    We will say no just as Australians, Canadians and Americans will do the same. Work with the government or go home.

    • @kayse..
      Your comment some of it are right but The others sounds like treath.all somali regions which is under proceses of researching oil should be negotiable BETWEEN central goverment and regional governance.

      No way on earth will regional governance accept mogadishu comes Their territories and tells how should be distribute The oil in The event oil been’s suicidal civil war can re-ignite in a big way if mogadishu keep interfering in The issue without real sold genuine negotiation.

      IC knows somali sitaution by now very well The will not allow mogadishu run free hand other somali regions,They will do utmost to balance Things.

    • In another words your Maajeerteen who wants same things as the Isaaq but it is okay for you to deny them what you want even though your even worst than them. Unlike you who claims to be part of Somalia yet stab them in the back, they staying out and suggesting not to be included in any process but an Maajeerteen is only in if he is PM or he is going to get a fake contract signed….that's the only time they are Somalis…

      Meanwhile they kicking or evicting southern Somalis from what they claim to be Somali regions under them. Such a hyp0crites and nothing but gang of pirates and criminals who only hide behind the blue flag when it suits them.

      Don't hide under me with your million shirts. Just as Dajal is clear as the sun to faithful, I can smell your pirate odor from Australia. Come clean and like Pirate-land-geezer at least stand somewhere.

      Don't hide under me with names like Mike kolna saciid kolna Ahmed, abdi, your poor ESL is the one that needs a make over.

      I ride solo, I went against my own habar so I can state how I feel about the truth and I wont spare the pirates who are in for the Somali ride only when there is pirate MP in Mogadishu or a weak president who complies with their million tribal demands. They are just another hyena bringing the Somali state down in the name of tribalism and Ethiopian sponsored federalism in Pirateland?

      You must be day dreaming.

      I careless of what Majerteen or Isaaq or anyone else thinks of me, my beliefs or thoughts. I ride solo and I will state as I see things fit dont take it personal.

      Don't see the difference between pro-tribal federalist and pro-tribal secessionist. At least the secession doesn't have one leg in and one leg out…in the mud.

      Dont be acting like my shadow. I only welcome genuine Somali State supporters feedback including Allemagan.

      My horse only takes one soldier to the battlefield and I fight my wars solo.

      Is that clear? Thanks for your cooperation in advance.

      • First of all i am not MJ probably you opposest with MJ.secondly, who said MJ wants same as isaq That’s completely wrong They have totaly different few.

        What’s This all garbage MJ stapping kicking one foot in one foot it’s all MYTH and fabrication.Puntland could declare independent state long time ago if They want Their main aim is unity of somalia nothing more.

        Without Them The new goverment would not exist,They bushed The road map just to get rid of,somalis can have ligament goverment once for all.They also wellcome The new addmin in mogadishu.

        I don’t Think They Evicting any southerns or That matter any somali person,it’s all made by you.

        I believe your The one who’s hiding two different shirts,it’s time to come clean either you join secessionist and go The wrong path or Advocate real somali don’t advocate half somali nationhood.

        • What utter crap and garbage kayse is spitting as usual, now we have discovered that he hates dar00ds as well as iss@qs. this only leaves one thing . this is a prove that he is a HAW!YE ….

          the joke is on him though being haw!ye is the worst thing in the world. hahahahahahahahahahahahahahahahahahah

          • LOL still bitter from the a** kicking we keep giving you you wish you was as strong as the Great indeginous Hawiye people just look at the Darood nation majority of your lands are all occupied by different people starting from other Somali tribes to Habashis to even Bantus LOL

        • siciid- kayse does not hate. anyone what he can not stand is a group of man who decided to in rich there pockets and use poor population to keep them at bait he has no malice toward to the population Somalia. his only goal is this nation must move forward anyone who stand the way must be disregard if you want that there's no need for you to fight with kayse.

          • People are discovering lately The lonely horse kaysa he’s not fighting The unity of somalia,but have other Agendas or motives.

          • Pirates are always bitter. So you only loved Kayse for bombarding Somaliland and especially isaaqs. Pirates are the biggest hypocrites.No president and no PM is driving them crazy. They should at least change their poor writing style if they want to use million different names in this website.

          • amal+haw*ye warrior same person

            Your comment not making real sense in any logic way.stop writen childish comment.

            The problem with lonely horse kayse is he’s promoting somali unity while denying others.This could be The beggist conspiracy fraud somalis history.

        • @saciid No one is denying Puntland is pro unity but what Kayse is saying which is true is that that unity depends on whether they're in the driver seat or even passenger and if not either then all hell breaks lose. Its like taking a candy from a spoiled kid and telling him he cant have it it starts to cry and swear and fuss and then throw kicks and punches till its demands is met.

  3. When the Military Regime of Somalia fell in 1991, all transactions not commercially
    producing economical successful benefits should be treated as nullified. Here a whole
    Nation and country went down with that Regime and after more than two decades, Somalia
    is still in havoc warmongering crisis, with the least concern of a whole Sovereignty Nation up
    for the scraps and burning hard, when irrate mentalities talk of honouring licencies and
    contracts to certain big power oil companies who didn't even produce a single drop of oil???
    Surely, that's absurd and absolute nonsense. However, it should be clearly understood that
    the roadmap TG (Roadmap all inclusive Signatories), who are only appointed caretaker
    transitional Govt, with flawed temporary Constitution, have many other priorities to embark on
    and such oil matters should be the works of a popularly elected peoples civil liberty more
    representative Sovereign empowered Govt(s) etc. There are other more demanding political
    issues to tackle before coming round to these oil issues??? Btw de jure Somaliland is outside
    the scope of the Somalia TG.


  5. Oil companies including Chevron were among the war criminals who use to arm Dhulbahante against Isaaq. They also use to pay Samaroon and Ogaden militias for security. It is they who should be scared of being taken to task for their past collusion, and that is why they are always ashamed to be associated with Zoomalia.

    it is wishful thinking to assume they will be back; never ever.

    • Mad-max folks,chevron deal oil company will come somalilouder region,becuase no one recognizes Them in woorld arena what so ever.who wants to invest UNKNOWN PLACE.

  6. Somali government in Mogadishu have every right to ban all these illegal oil companies and any contract that signed after 1991 shouldn't be given any priority.

    • Khatumo citizen,
      The new government of Somalia doesn't even have a full control over Mogadishu let alone Somalia in general terms….

        • Khaatumo citizen,
          Either you start your journey down to the south or you get alone with your brethrens in Somaliland.
          You can't have both ways..

          • sanaag,
            You may call Somaliland whatever term you choose to, because I respect the freedom of speech, however, Somaliland has a full jurisdiction over all somalilander regions.

  7. This is very confusing to the people who are thinking whats really going on but i think its a another genius move from this new government. What they have basically done is let the big corporation have a big whiff of their old contracts but then at the same creating competition to let them know that if they don't come to the negotiation table to renegotiate their contracts then this government will simply give it away. I know that this will never happen and these big corporation will keep their contracts but with this it will atleast create some doubt in them on whether their contracts is realy 100% secure .GENIOUS. This is how i know for the first time sins before the coup Somalia is once again being led by DEMOCRATIC progressive busines oriantated people long live Somalia long live Somaliweyn

  8. I am amazed by qaldaaans obsession with Puntland, the whole world knows it has oil, you don't find oil in 6 months, you ought to follow suit OH WAIT, you just did.

  9. Minister of finance. The minister of finance he is corrupted and radical Muslim leather personally he evict the kulmiye party. Also he is start the modern radical and in experience staff internal audit, accountant, and important are of customs and excise his mission to miss use customs and financial rules and support some companies with out revenue and customs and excise legal profit utter as well his administration called a-z means his order to clear ear he is junior admin and first start job but Somaliland failure this minister and important position president silanyo he is weakness and support advice of hersi some junior minster as well not good director general any sola yo who is elected next time.. And salmale every one knows he is mis use Koran. Thanks readers

  10. Drear readers a l support mr samale is top terror relations and hide members and miss use Koran and silayo he is biggest and first corrupted minister ask senior staff where is the money over budget he took more than 2million dollar every body knows. Every step the staff knows. How to collect and how to pay as well amount bank system and accounting style I’d clearing more secret about his admin samale my afar beeno was xoolohii qaranka Boobay he is double terror