Somaliland: “ Oil Production Sharing Contracts Between Government and Foreign Companies not Ambiguous ” Eng Duale


Somaliland Energy and Minerals Minister Hussein Abdi Dualeh releases a statement in his offices in Hargeisa 05 September 2014

Somalilandsun – The Somaliland Energy and Minerals Minister, Hussein Abdi Duale has released a statement negating sentiments emanating from Mogadishu pertaining to the illegality of Oil production sharing contracts issued by the Government of Somaliland.

Belosw are the verbatim excerpts of the Ministry of Energy Statement 

Somaliland is a peaceful, stable and democratic nation, which has been independent since 1991. There is no ambiguity or dispute over oil exploration licenses that were issued by the Somaliland government in its own territory.
The Government of Somaliland entered into a Production Sharing Contract (PSC) with the Norwegian oil and gas company DNO International on 23 April 2013. Somaliland is committed to harnessing its natural resources for the benefit of its people. By investing in Somaliland, companies such as DNO are helping to secure a prosperous future for our country.
The government firmly denies the allegations that DNO has created an armed militia in Somaliland. In 2013 the government decided to create a specially trained unit of our security forces, to ensure a safe working environment for operators. The unit will be up and running by early 2015 and will be fully accountable to the Somaliland government. The safety and security of all those living and working in Somaliland is the government’s number one priority.
Somaliland is an island of peace and security in a difficult region. The development of our natural resources is a key part of the government’s ambitious development plan, which is supported by the Somaliland Development Fund, a collaboration between the governments of Britain and Denmark.
Somaliland has been a de facto independent state for over 23 years. Despite meeting all the criteria for statehood under international law Somaliland has yet to be recognized as an independent nation. Recognition would serve the strategic interests of the international community by stimulating Somaliland’s economy and helping tackle poverty, it would help address critical security issues and would entrench democracy in the Horn of Africa.
DNO is the third international oil company to acquire petroleum exploration acreage in Somaliland since 2010. This is proof of the confidence international investors have in Somaliland. In addition to its hydrocarbon reserves potential, Somaliland is strategically positioned to become a regional energy hub within East Africa.