SOYMB recently posted about the exploitation of Somalia's fishing wealth being looted by the world's real pirates. The Observer today reveals that for all the humanitarian cant being professed by the international community.
Talks are going on between British officials and Somali counterparts over exploiting oil reserves that have been explored in the north-eastern region of the country.
Abdulkadir Abdi Hashi, minister for international cooperation in Puntland, north-east Somalia – where the first oil is expected to be extracted next month – said: "We have spoken to a number of UK officials, some have offered to help us with the future management of oil revenues. They will help us build our capacity to maximise future earnings from the oil industry." Hashi, in charge of brokering deals for the region's oil reserves, also said Somalia was looking to BP as the partner they wanted to "help us explore and build our oil capacity".
On Thursday, the last day of the London's Somali conference, BP and Shell unveiled an initiative to support job-creation projects in the coastal regions of Somalia.
Last month oil exploration began in Puntland by the Canadian company Africa Oil, the first drilling in Somalia for 21 years. Hashi, who sealed the Africa Oil deal, said the first oil was expected to be extracted within the next "20 to 30 days". The company estimates there could be up to 4bn barrels (about $500bn worth at today's prices) in its two drilling plots. Other surveys indicate that Puntland province alone has the potential to yield 10bn barrels, placing it among the top 20 countries holding oil. Chinese and US firms are among those understood to have also voiced interest about the potential for oil now that, for the first time in 20 years, the country is safe enough to drill. The state-owned China National Offshore Oil Corporation has tried to acquire an interest in Somalia's reserves. Senior officials from the Somali transitional government are adamant that the imminent extraction of oil in Puntland next month would kickstart a scramble from the multinationals.
It is the extent of oil deposits beneath the Indian Ocean that is most exciting Somali officials. One said the potential was comparable to that of Kuwait, which has more than 100bn barrels of proven oil reserves. If true, the deposits would eclipse Nigeria's reserves – 37.2bn barrels – and make Somalia the seventh largest oil-rich nation.
Somali prime minister Abdiweli Mohamed Ali said his government had little choice but to entice western companies to Somalia by offering a slice of the country's natural resources, which include oil, gas and large reserves of uranium. "The only way we can pay [western companies] is to pay them in kind, we can pay with natural resources at the fair market value."