AFRICA/SOMALIA - Chaos reigns in Somalia but some come looking for oil

Mogadishu (Agenzia Fides)- Somalia is in the grip of chaos but business continues as usual. While most of the people in the capital Mogadishu have fled the city because of fighting between the Ethiopian troops supporting Somali transition government and insurgents connected with the Islamic Courts, a delegation of a Canadian oil company has arrived in the semi-autonomous central region of Somalia, the Puntland peninsula.
The delegation is meeting regional leaders with regard to an exploration campaign. According to a statement issued by the Africa Oil Corporation, the Canadian experts have already visited the basins of Nogal and Dharoor Valleys, in northern Somalia where the company intends to start digging four exploration wells. In January this year the Africa Oil Corporation and the government of Puntland signed an agreement to share production of petroleum, causing protests from the local clans.
Chinese companies also intend to lead oil prospecting programmes in the area.
Somalia, especially its coastline, attracts the interest of various oil companies because of its vicinity to hydrocarbon rich areas of the Red Sea and the Gulf of Aden. Just before Somalia plunged into chaos and anarchy in 1991, former governor Siad Barre signed oil prospecting contracts with a number of foreign companies but the country's internal situation prevented the agreements from being enacted.
Rising oil prices make even countries like Sudan tempting particularly to independent oil companies, not directly connected with the giants in the sector.
Oil has become part of Somali politics. The recent destitution of prime minister Ali Mohamed Gedi was due also to conflict over the exploitation of Somalia's presumed oil reserves (see Fides 8 and 29 October 2007). High border tension between Puntland and Somaliland, the northern regional which declared its independence (although not recognised by the international community) is sparked by a desire to control oil rich areas.
Commercial exploitation of possible hydrocarbons threatens to be hindered by the country's instability. What is more possible off-shore resources would be at the mercy of Somali pirates, a serious danger for international seafaring and an obstacle to shipping humanitarian aid to the local people. In fact the International Maritime Organisation has asked the Somali transition government to “take the necessary measures to prevent and stop acts of piracy and armed robberies on ships”, and to "ensure its coasts are not used as safe havens after these attacks”. The British government has even threatened to allow its navy to pursue pirates in Somalia's territorial waters. (L.M.) (Agenzia Fides 30/11/2007 righe 35 parole 460)