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SOMALIA: Federal Government Declares Genel Energy Operations in Somaliland Illegal

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Somalia’s Ministry of Petroleum and Mineral Resources has condemned Genel Energy’s activities in the autonomous region of Somaliland terming them as illegal. According to s statement by the ministry warns  Genel Energy of the potential risks to its investment and legal ramifications for what it calls ‘carrying out illegal exploration in Somalia‘.

The Federal Government said that Genel Energy did not have any petroleum rights in Somalia’s northern region demanding that it ceases any operations.

“Based on the Principle of Permanent Soverignity of Natural Resources the Federal Government of Somalia reminds Genel Energy  PLC and any other potential investor that an authorization to explore and develop petroleum resources in Somalia must be in conformity with article 44 of the Provisional Federal Constitution the ownership, management and revenues sharing agreement, the petroleum law and regulations of the Federal Government of Somalia,” the ministry said in a statement.

“The Federal Government of Somalia in Response to any violation of its sovereignity over its resources, shall take all possible measures and pursue  all legal avenues as part of its constitutional mandate to protecting Somalia’s territorial integrity...”

Genel Energy is yet to respond to the ministry statement.

Genel has however been quiet in the past five years on its operations in Somalia since its acquisition of 100- line km of 2D seismic in the Odewayne block in 2017 with data acquired by chinese company BGP in Saraar, Togdheer, Dadmaded, Marodijeh and Hawd regions bringing the total 2D seismic acquired by the company to 2000km.

In 2016 the Government of the Republic of Somaliland granted Genel Energy  a further 2 year extension to the current period of the Odewayne Production Sharing Agreement (PSA).

The expiry dates of the relevant exploration periods under the PSA were then to be:

  • Third Period: 2 November 2018;
  • Fourth Period (optional): 2 May 2020;
  • Fifth Period (optional): 2 May 2021; and
  • Sixth Period (optional): 2 May 2022.

Genel has 50 percent interest on the Odewayne Block while Sterling Energy (East Africa) Limited has 34 percent and has the remaining Petrosoma Limited 16%.

On the SL-10B/13 block Genel is the operator with 75 percent interest.

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