Western commercial oil exploration in disputed areas of Somalia and discrepancies over which authorities can issue licenses to companies could spark further conflict in the African nation, U.N. monitors warned in a confidential report.

In the U.N. Monitoring Group’s latest annual report to the Security Council’s sanctions committee on Somalia and Eritrea, the experts said the Somali constitution gives considerable autonomy to regional governments to enter commercial oil deals.

But a petroleum law that has not yet been adopted by the country’s parliament but is being invoked by federal officials in the capital Mogadishu says that the central government can distribute natural resources.

“These inconsistencies, unless resolved, may lead to increased political conflict between federal and regional governments that risk exacerbating clan divisions and therefore threaten peace and security,” the experts group said in an annex to its annual report, which was seen by Reuters.

The overthrow of a dictator in 1991 plunged Somalia into two decades of violent turmoil, first at the hands of clan warlords and then Islamist militants, while two semi-autonomous regions – Puntland and Somaliland – have cropped up in northern Somalia.

Around a dozen companies, including many multinational oil and gas majors, had licenses to explore Somalia before 1991, but since then Somaliland and Puntland and other regional authorities have granted their own licenses for the same blocks.

In some cases Somaliland and Puntland have awarded licenses for blocks that overlap. The experts said one such case involves Norwegian oil firm DNO and Canadian-listed Africa Oil Corp.

“Potentially, it means that exploration operations in these blocks, conducted by both DNO and Africa Oil under the protection of regional security forces, its allied militia or private forces, could generate new conflict between Somaliland and Puntland,” the report said.

“It is alarming that regional security forces and armed groups may clash to protect and further Western-based oil companies interests,” it said.

“In this case, the involvement of a Norwegian company on one side and of a Swedish-owned/Canada-based company on the other, is even more disturbing, considering the long-standing implication of Norway and Sweden in promoting peace and dialogue in Somalia,” the experts said.

Bjorn Dale, DNO’s acting president/managing director and general counsel, said he was not familiar with the U.N. experts’ recent report but said that the company would never engage in activities that threatened peace in Somaliland.

Africa Oil was not immediately available for comment.

CONFLICT OF INTEREST?

Somalia is struggling to rebuild after decades of conflict and a U.N.-backed African Union peacekeeping force is trying to drive out al Qaeda-linked Islamist rebel group al Shabaab. Piracy off the Somali coast is also a problem.

The U.N. experts also expressed concern about a clash between a longstanding bid by Norway to urge Somalia to implement an exclusive economic zone (EEZ) off its coast with commercial interests by a Norwegian oil company.

Under the U.N. Convention of the Law of the Sea, an EEZ would allow Somalia 12 nautical miles of territorial control with claim to sovereign rights to explore, exploit, conserve and manage natural resources that exist within 200 nautical miles.

The U.N. convention then requires Somalia to negotiate a maritime boundary with Kenya, which the U.N. experts said could lead to several disputed oil exploration blocks being deemed to be in Kenyan waters.

The U.N. report said late last year that Kenya had suspended Statoil’s license for block L26 because the Norwegian company did not want to spend money on exploration while there was the legal uncertainty over the maritime border with Somalia.

A Kenyan government official told the U.N. experts that Statoil had expressed an interest to develop the area should a boundary be agreed with Somalia and the L26 block was deemed to be in Kenyan waters.

“Efforts by Norway to lobby Somali officials to adopt the EEZ now coincide with current Norwegian interest in the fate of L26 as well as with Norwegian involvement in the application of a Special Financing Facility donor fund of $30 million which has been allocated under the management of (Somali government) officials with a track record of corruption,” the report said.

The experts suggested that Norway’s development assistance to Somalia could be used “as a cover for its commercial interests there,” a claim it said Norwegian International Development Minister Heikki Eidsvoll Holmas has denied.

Norway’s U.N. mission did not immediately respond to a request for further comment.

 

Source: Reuters

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1 COMMENT

  1. This article is about the SFG roadmap strategies, agendas of Somalia and has nothing
    to do with the fully autonomous Sovereignty of the Somaliland democratic Republic
    whose Capital Hargeisa's functioning Govt under the leadership of HE President DR Muj
    Silaanyo operates outside the scope of the powers of the SFG of Capital Mogadiscio.
    Therefore, this article is all misleading report.
    Cheers.

    • You can say the article is misleading, but this is the way the international community considers Somalia, two autonomous regions Somaliland and Puntland, there is no country called Somaliland, you can dream of it if you wish, Hargeisa is out of the scope of Culusow and Mogadishu true, but still its an autanomous region not a country.

  2. aha! skinnies on their usual business. These is a wasting of time and we have been patient enough. Somalis don't know what oil is used for. They just heard people talk about how their masters the Arabs got rich by selling it. Kenya has a right to take everything in there by force and should annex the entire land. The skinnies proved how they are incapable of doing anything while another skinny is still breathing. They sabotage each others moves, hate each other and cannot work together. They produce terrorists that bother their neighbors and so Kenya and Ethiopia should act and conquer the land and cleanse the skinnies all together. The UN should just stand a side and watch. The rest of the world will be very appreciative of our bravery and wisdom. This skinnies are very primitive and have the brain the size of a peanut. The UN should even help Kenya and Ethiopia with weapons to cleanse with these parasites.

    • Those who cause divisions and create obstacles are from the Isaaq clan they want Somalia to be split into British and Italian white trash village borders.

      We Africans must unite we should not bow down for the white man or the Arab.

      Ps Kill all the Al shabaab b@stards I hate them so muchhhhhh.

      • you don't make a difference to me. al shabaab or watever, wariyaa ni wariyaa. they all look like the dogs and so they must be cleansed. you poor fool will dream that i like you more than my dog. i despise you stinking skinnies,. u r trouble and ignorant.

        • You weak Kenyan monkeys the children of apes and pigs when Somalis came to your country we taught you how to clean yourselves and taught you how to do business

      • Pirate do not be hyporcrit and start by traitor Isse from Djibouti who love french white trash border.kk walanweyn and faqash always so focus on Somaliland. Pitiful.

  3. Some people mistake sovereignty for recognized UN member nation. Somaliland, though not a UN member nation, is sovereign because it does take orders from Somalia. Somalia may keep claiming that Somaliland is part of the defunct Somali Republic, but that does not change the reality on the ground — the sovereignty of Somaliland. For example, Taiwan is recognized by more than 60 nations, but it is not sovereign, because it answers to China, and therefore will never be a UN member nation. Similarly, Kosovo has been recognized by many nations, but it is not sovereign. Those who repeat the mantra that Somaliland does not exit fail to understand the difference between sovereignty and being a member of the UN. Repeat your mantra all you want, but Somaliland is a reality and it is here to stay. nation.

    • Sovereignty means…Independent State. That's what both Somaliland and Somalia are on
      equal terms as far as the United Nations are concerned. The countries that you mentioned
      are unrelated status quos.
      Cheers.

      • Why takes orders when both Somaliland and Somalia had seperate births under de jure
        post Independences of equal status quo..no premature birth of either. The Amalgamation
        of their Union is entirely an aftermath advent.
        Cheers.
        rs

    • Wiil Direed – Ciise,
      We Somalilanders are sovereign and independent nation. If you are Majeertan Puntaland, We are Northern
      DIR land, Isaaq is not alone they have brothers, Samaroon and Issa as brothers of Reer Sheikh Isaaq.
      and we three are almost 95 % of Somali population. More than that, do not forget that we have IRIR
      cousines in Somalia Republic of South Italian Somali colony and other cousines in Ethiopian Somali
      region. All those people we share blood but we live in the different countries.
      Republic of Somaliland, Republic of Somalia and Republic of Jabuti Three independent states who
      are sisters/ Who can stop sun rising , who can hide sun by your hands.
      Daroods should live as minority in all of those states or go back to Yemen.

      • Wiil ISSA WARAABE.

        If all Dir creatures + Hawiye Moryaan are 95% IN Somalia how come they have combine seats of 110 in the federal parliament DO YOUR CALCULATION or go back to SCHOOL..

        Your ignored, DAROOD JABERTI ISMAIL own and control vast land include Puntland, Jubbaland, reserve ares killil5, NFD. so, now you tell me who's minority do not disrespect your masters. you better of your ( French Boot camp ) because this is where you belong.

  4. two semi-autonomous regions – Puntland and Somaliland – have cropped up in northern Somalia.

    That's So True Somaliland is a tribal Isaaq state while other pro Somalia clans like Dhulbahante clan have already objected to the presence of Isaaq forces in Khaatumo State.

    Ps the oil spot SL18 block which is in Khaatumo State of Hudun region remains under the control of Khaatumo State.

  5. Somaliland needs a long way to go to become an autonomous region of Somalia. SSC, Makhir, Khatumo already formed their own regions away from the central clan ran areas. Awdal is about to break off, at anyway Mogadishu sees it unacceptable unless it undergoes a considerable restructure spearheaded by SFG with appointed governor. Puntland and Galmudug already qualified as autonomous region of Somalia. As Jubaland evidenced the barrier to federal entry went too high lately

  6. Folks…Put one important factor in proper context.
    For all the 5star greater AL-Somal, Somaliland was the first
    Sovereign country gaining full time Independence from Great Britain
    after 86 years under colonial British Protectorate treaties.
    How then, the first Independent Somaliland Nation could be turned
    into Subjugation under Somalia and what not???
    Cheers.

    • Mr cheers,
      We brought that flag to the south is one of biggest fallacies propagated by the secessionists. That 5star flag was designed in the south in 1954 and the south brought to the sleepy north not the other way around.

      • Come again, the blue flag was all Somalilander except the
        two dangerous tigers of the lower/upper jubas.
        ""Qolaba calankeedu wa cayne inagaa keenu wa cirko kale ee"".
        That song was Somalilander.
        Cheers.

          • @Abdi Mohamed

            mohamed cheers is good at talking BS we know the flag was designed in the south and was brought to his mud village of Hargeisa anyway mohamed cheers was never unionists he is a pagan white trash worshipper.

          • @puntlandGeezer (PIS)
            It was the SYL who got the "Transfer of Jurisdiction" from the british to Somalia. They gave out same way they gave out some land to Ethiopia and to Kenya. There were only one planed Independence for both on July 1st. The reason why the north was first released on June 26th was to facilitate for delegates to travel by road (treacherous at that time until Somalia built later) to come Mogadishu for the real the only Independence to take place. The world lols @ them when they talked about brief period of what?

          • Come again, tell me what was the Somaliland flag look like when gained independence
            ex Britain on June 26 1960? or you and PuntlandGeezer would claim the Somaliland
            had the Somalia SYL flag? Abdillahi Qarse song related to the Somaliland flag.
            You dudes are bs apaches.
            Cheers.

  7. Aint nobody going back to those blood su ckers in Somalia. Faysal is right Somaliland is sovereign bc its people made it that way.

  8. People who have wealth fight over such wealt;, us skinnies got nothing. Everyone's got their bags ready and packed up to go to anywhere including the dirty nasty Yemen.

    What is important however, is that SL demand that UN makes it clear that Zoomalia does not claim an inch that was once British Somaliland.

  9. Firstly, this report is just baseless. Did it ask what is Puntland? Puntland is a Majerteen land, an area inhibited predominantly by a sub-tribe. When did a sub-tribe assume a legal authority over internationally acknowledged boundaries? Majeerteen does not live or come near the Somaliland territory so the report failed to do the basic research. Secondly, Puntland is part of Somalila nad that is why Somaliland is negotiating with Somalia.

    Oil Companies enter into legally enforceable contracts at both national and international level. Somaliland has internationally acknowledged border if it’s recognised and any contracts that fall under its territory will be enforceable at national and international level. The Same goes for Somalia government but Who will enforce Puntland contracts as it has no border or does not represent anything but a small land inhibited by a small sub-tribe. I can’t believe the UN is reduced to this.

    • kkk, you must very confuse person, "Puntland is an area inhibited predominantly by a sub-tribe. When did a sub-tribe assume a legal authority over internationally acknowledged boundaries?" have you ever ask yourself what Somaliland is, Somaliland= Isaqland as simple as that they do not represent majority of dhulbahente, Warsangeli, Gudabiirsi.

      PUNTLAND STATE only one tribe does not inhabit there more then seven large clan live Puntland territory.
      This fake border your talking about does not exist at all.

      • The border exists and it's internationally acknowldged but it has not be recognised yet. Man who you think you can fool? These reprots are issued for political reasons and is being written delibrately in order to confuse the folks like you. The UN wants to take ownership for all Somalis and that's why these reports are being released but their concept cannot withstand in international courts or anywhere. You're part of Somalia and are rightfully attaeched to it.

        Somaliland even without recognition has an existing border and it has no despute with Puntland but has a despute with Somalia. Don't fall for this recent narrative that puts in par with Somaliland which is the mother of the former SOmali Republic. Also the oil companies which had contratcs with the former dictator are probably paying the folks who write thise reports so they put doubts on those who are not well versed in Somali issues.

        • YOU should understand WHOLE of SOMALIA is sponsor by UN including Somaliland region. without UN all these admin such as Somaliland, Puntland and Mogadishu will vanish because they have NO any other sustainable revenue to go on. i am not endorsing UN agenda but that is the reality UNTIL Somalis stand up own feet.

          It looks your mixing up different things here or maybe your not following Somalis CURRENT situation, Puntland Government is totally different from Mogadishu the only thing they can share is federalism. so, if there is border dispute between Somaliland and Puntland they have to solve themselves or this could go on next 100 years.

          By the way Northern/Somaliland alone did not create Somali republic in 1960 it takes two to tango.

          Again it's MTYTH this border does not exist nor it has any international recognition.

  11. but what right does a useless government in somalia have to dispute withe regional governments?somalias can not be forced to like or love each other if any region feels it can manage it's own affairs then well and good.it's high time those hanging onto the rope of federation to let go let go.the way things are in somalia, even whatever measures are implemented it simply would not work.and trying to force somaliland to give in is a wast of time they showed other somalis they are capable of running their affairs before even the west feared terrorism would reach their shores.where would the useless somalia government be without western and african intervention?come rain come shine somalilanders will stand by their principals.

  12. puntlandgeezer
    puntandese the copy of somaliland republic it cannot be like somaliland republic this Majeerteenia region can do little to help herself it can't even defend her so called police officers etc let alone any one else ……….it has got the last good lesson when she tried to mock Somaliland progress and nationhood when it said that it is holding an election she found how disillusioned it is …it found her region murdering one another with heavy infantry weapons which they use to rob one another

  13. Jaami,

    Somaliland has well known borders which are internationally acknowldged. It has control over it's teritory and has a trained army which is capable of defending against any threat that comes from Somalia. In short these contracts that were signed by the Somaliland government will be enforceable and secure. I'm sure the firms know that well as well.

    As for Somalia, it's up to arrangements they make between themselves. I reckon the validity of the contracts signed with the companies by its mini regional governments will depend on what sort of permission that their recognised federal government gives. That is me talking objectively.

    As I said before, this report is just based on ungrouded validations which are outside the recognised norm of international and national rules. By definition, according to this report, anyone can make a claim which will the UN term it as despute . Forget about the oil companies, I say these sort of report are the first step of creating choas in the minds of these nomads who will think the UN supports their outlandish and delusional claims.

  14. Clarification to those who are confused immensely, Somaliland is not internationally recognized a membership of the UN, however it's a sovereign nation of it's own in the eyes of Somalilanders, as 'it's been running it's own internal affairs over 22 yrs. without the help of the UN……
    Again, Somaliland isn't like Somalia as such the UN should not be sticking it's nose into Somaliland's internal development initiatives.

    Note, I'm not quite convinced the credibility of this report…..
    .

  15. The UN is a racket everyone knows that. I think its time we shun them to be honest. Sometimes you have to separate yourself from disease.

  16. U.N. Says Corruption Rampant in Somalia.

    NAIROBI, Kenya–A United Nations report published Wednesday paints a dark picture of rampant corruption within Somalia`s fledgling government, a portrait that could turn off donor countries that bankroll the country`s budget.

    The almost one-year-old Somali government still controls only sections of the country around the capital of Mogadishu and the southern border with Kenya. But even this has been seen as tremendous progress in a country that hasn`t had a functioning state in decades.

    And Western countries have been quick with funds to back the administration of President Hassan Sheikh Mohamud, elected by parliament in September. Britain, the European Union and the U.S. committed more than $350 million in May to finance the bulk of Somalia`s federal budget this year.

    The report by the U.N. Monitoring Group on Somalia and Eritrea is a harsh reminder that the installation of a formal government did little to change a system of patronage and off-the-book deals that has long characterized the country`s economy.

    “Despite the change in leadership in Mogadishu, the misappropriation of public resources continues in line with past practices,” the report said.

    Somalia`s central bank has essentially become a “slush fund” for patronage networks, with 80% of withdrawals made for private purposes rather than running government programs and much of the funds transferred into the bank not traceable at all, the report said.

    In one of the largest documented cases, a cashier at the Finance Ministry named Shir Axmed Jumcaale withdrew $20.5 million in his name between 2010 and 2013. He then used those funds to make untracked payments for ministry officials.

    Central Bank Governor Abdusalam Omer said in a phone interview that every withdrawal had a name attached to it and that he wasn`t responsible for how those funds were later disbursed.

    “What I can tell you 100% is that the money that came to the central bank left it in a legal way. It went to the departments and the agencies that are supposed to get it,” Mr. Omer said.

    Meanwhile, plenty of revenue isn`t making it to the central bank at all. Customs and ports fees deposited are much lower than would be expected given the increase in shipping traffic and about 33% of these funds can`t be accounted for, the report said.

    It is a situation that could complicate coming requests for more funding from Western donors who are leery of pouring money into a country where there is little hope of finding out where funds end up.

    “The various spoilers identified by the Monitoring Group threaten to undermine legitimate authority in the country as well as international assistance efforts,” the report said.

    While this year`s budget has already been shored up, the Somali government is expected to be looking for more funding at a conference with the EU in Brussels in September.

    The monitoring group recommended that the U.N. Security Council take back under consideration a plan for joint international and Somali oversight of the management of public resources. The report didn`t provide details on how this joint oversight system would operate.

    Original Source wall street journal: http://www.jubbalandmedia.com

    • What do you expect when you give COLD CASH bunch of Moryaan this is not surprise. REMEMBER they were responsible loot all resources in Mogadishu all SOMALIS contributed.