{"id":2573,"date":"2015-02-18T12:50:22","date_gmt":"2015-02-18T12:50:22","guid":{"rendered":"http:\/\/www.oilnewskenya.com\/?p=2573"},"modified":"2015-05-20T12:59:06","modified_gmt":"2015-05-20T12:59:06","slug":"uncertainty-legitimacy-pscs-somalia-keeps-explorers-bay","status":"publish","type":"post","link":"https:\/\/www.oilnewskenya.com\/index.php\/uncertainty-legitimacy-pscs-somalia-keeps-explorers-bay\/","title":{"rendered":"Uncertainty over legitimacy of PSC\u2019s in Somalia keeps explorers at bay"},"content":{"rendered":"

Over the past few months a number of explorers searching for oil and gas in Puntland and Somaliland have closed shop as border wrangles between the autonomous states Somalia continue.<\/p>\n

More recently to stop exploration activity was Horn Petroleu<\/a>m which said it was unable to continue with its search in the Dharoor and Nugaal blocks which overlap the contentious border.<\/p>\n

Earlier its partner and operator in the blocks Range Resources had also made its decision to close its offices in Somalia until there is a \u2018clear and contractual certainty around the Production Sharing Agreements (PSAs) and the legal regime\u2019 that currently exists in Puntland.<\/p>\n

In both occasions the explorers have asked for license extensions awaiting an adequate resolution to be reached.<\/p>\n

Genel Energy which is the Operator in blocks SL-10B and SL-13 has also suspended seismic acquisition in Somaliland.<\/p>\n

Other companies that have either slowed down exploration activity, stopped or suspended operations includes Sterling Resources and Australian explorer Jacka Resources.<\/p>\n

Elsewhere onshore Block SL18 Operator Norwegian explorer which has also received a license extension<\/a> in Somaliland has also had situations where its team has been caught in shootouts in the region.<\/p>\n

And whereas oil companies stand to lose their said money invested through delays in projects or through license cancellation there are questions as to whether the hydrocarbon potential in the area could be a source of this dispute all together.<\/p>\n

According to a report by the UN Monitoring Group on Somalia and Eritrea some of the oil companies in the region may be fuelling the insecurity in the area with DNO named.<\/p>\n

Already the Somali government has warned it may file complaints against this firms to the United Nations Security Council with the Norwegian explorer accused of \u2018planning to introduce armed militiamen in areas already in conflict and thereby stoking old feuds which resulted in internal displacement and harming the innocent and the most vulnerable people.\u2019<\/p>\n

The United Nations has also warned that oil discoveries in the regions could lead to violence in the largely peaceful two semi-autonomous regions.<\/p>\n

These developments could hurt the comeback by oil majors in the horn of Africa most of whom have had dormant contracts since war erupted in the region in 1991 as well as efforts to hasten<\/a> exploration in the region.<\/p>\n

A planned oil protection unit<\/a> by the Somaliland regime is yet to be put up although pundits also argue that this force could also deepen strains between the wrangling sides.<\/p>\n

As it stand exploration activity in contentious region remain paralyzed until and amicable solution is reached.<\/p>\n

Onshore Somalia is also having border problems with Kenya<\/a> over a triangle of water stretching more than 100,000 a sq kilometers and which Kenya has awarded seven licenses to various companies including: Eni, Anadarko and Total.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Over the past few months a number of explorers searching for oil and gas in Puntland and Somaliland have closed shop as border wrangles between the autonomous states Somalia continue. … Read More<\/a><\/p>\n","protected":false},"author":24,"featured_media":1842,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[11],"tags":[2848,595,610,976,1140,1192,1790,2102,2352,2356,2409],"class_list":["post-2573","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-top-news","tag-border-dispute","tag-dharoor-block","tag-dno","tag-genel-energy","tag-insecurity","tag-jacka-resources","tag-nugaal-block","tag-puntland","tag-somalia","tag-somaliland","tag-sterling-energy","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/09\/oil_gas_somali.jpg?fit=280%2C250&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-Fv","jetpack-related-posts":[{"id":2528,"url":"https:\/\/www.oilnewskenya.com\/index.php\/horn-petroleum-halts-exploration-puntland-somalia\/","url_meta":{"origin":2573,"position":0},"title":"Horn Petroleum halts exploration in Puntland, Somalia","author":"","date":"February 13, 2015","format":false,"excerpt":"Horn Petroleum Corporation\u00a0a subsidiary of Africa Oil has said it will significantly reduce its activities in its Dharoor and Nugaal PSC areas pending a resolution of the political situation between the Regional Government of Puntland and the Federal Government of Somalia regarding the legitimacy of oil concession contracts. The company\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3113,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africa-energy-withdraws-puntland-somalia-blocks\/","url_meta":{"origin":2573,"position":1},"title":"Africa Energy withdraws from Puntland, Somalia blocks","author":"","date":"June 30, 2015","format":false,"excerpt":"Africa Energy formerly Horn Petroleum Corp has announced that it has provided notice to the Puntland State of Somalia advising of its intention to withdraw from the January 2007 productions sharing agreements in respect of the Nugaal Block and the Dharoor Block, each made among the Company, the Government of\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/07\/puntlandoil.jpg?fit=640%2C423&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":2072,"url":"https:\/\/www.oilnewskenya.com\/index.php\/insecurity-political-issues-continue-to-haunt-exploration-in-puntland-somalia\/","url_meta":{"origin":2573,"position":2},"title":"Insecurity, Political issues continue to haunt exploration in Puntland, Somalia","author":"Samuel Kamau Mbote","date":"November 20, 2014","format":false,"excerpt":"[twitter-follow screen_name='oilnewskenya'] Insecurity continues to paralyze oil and exploration in Puntland with many companies holding back activities until a solution is sought. Just recently Horn Petroleum which holds licenses Puntland\u2019s Dharoor and Nugaal blocks recently told its shareholders it had halted the planned seismic acquisition in the Dharoor Valley area\u2026","rel":"","context":"In "Oil Politics"","block_context":{"text":"Oil Politics","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/oil-politics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/11\/dharoor-valley-of-puntland-oil-block.jpg?fit=380%2C306&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1598,"url":"https:\/\/www.oilnewskenya.com\/index.php\/horn-petroleum-prepares-for-seismic-acquisition-in-somalia\/","url_meta":{"origin":2573,"position":3},"title":"Horn Petroleum prepares for seismic acquisition in Somalia","author":"Samuel Kamau Mbote","date":"August 12, 2014","format":false,"excerpt":"Horn Petroleum which has working interest in the Dharoor Valley and Nugaal Valley exploration areas in Puntland has announced that it is now focused on making preparations for a seismic acquisition campaign in the Dharoor Valley area which will include a regional seismic reconnaissance grid in the previously unexplored eastern\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2014\/08\/somalia-dharoor-valley.jpg?fit=800%2C616&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":209,"url":"https:\/\/www.oilnewskenya.com\/index.php\/africaoil-q3-operations-update-puntland-somalia\/","url_meta":{"origin":2573,"position":4},"title":"AfricaOil Q3 operations update – Puntland, Somalia","author":"Samuel Kamau Mbote","date":"December 9, 2013","format":false,"excerpt":"Dharoor Valley and Nugaal Valley Blocks The Company continues to evaluate the encouraging results of the two wells drilled in 2012 on the Dharoor Valley block which proved all the critical elements exist for oil accumulations, namely a working petroleum system, good quality reservoirs and thick seal rocks. 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