By Malyun Ali
Nairobi (RBC) DNO International which is small Norwegian oil and gas company, announced on Tuesday that it has entered into a Production Sharing Contract with Somaliland administration, a breakaway region on the northwest of Somalia, the company said.
The agreement, signed in Washington DC on 22 April 2013 was attended by Somalilnd president Ahmed Mohamed Siilaanyo and Executive Chairman, Bijan Mossavar-Rahmani.
The Norwegian company’s Executive Chairman confirmed that DNO International has initiated studies on Block SL18 (disputed area of Sool and Sanaag regions) ahead of an extensive seismic program planned for 2014.
“This 12,000 square kilometer block adds substantial exploration acreage to DNO International’s portfolio and in an area that is both prospective and undrilled,” said Mossavar-Rahmani.
He added that Somaliland falls within the Company’s geographic and geological comfort zones. “We have been active across the Gulf of Aden in Yemen since the late 1990s.”
Block SL18 is situated on the Nugaal Valley Basin, a stretch of land that encompasses the provinces of Sool, Sanaag and Ayn, in short the SSC regions, where heavy clashes occurred in Hudun district of Sool province last month between Somaliland forces and Khaatumo State forces which fight for country’s unity.
Hudun town is situated in the western parts of Sool province, exactly in the center of Block SL18, and remains under the control of Khaatumo State of Somalia.
Also Puntland and Somaliland forces, each claiming the ownership of the area have been constantly battling in the region since 2007 resulted more deaths.
Analysts say that as long as Block SL18 is under the control of Khaatumo State, and there might be opposition from the local population and the war in the Sool and Sanaag regions will continue and accelerate, while Somaliland is trying to secure these regions for seismic surveys on the ground.
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