Subscribe free to our newsletters via your
. Energy News .




ENERGY TECH
Troubled Somalia hustles Big Oil to resume exploration
by Staff Writers
Mogadishu, Somalia (UPI) Oct 16, 2013


Shell declares Nigerian pipeline open after repairs
Lagos (AFP) Oct 17, 2013 - Shell said on Thursday it had repaired and reopened a key pipeline in southern Nigeria shut down last week owing to leaks, but that contractual obligations remained suspended.

"We reopened the Trans Niger Pipeline (TNP) yesterday (Wednesday) after carrying out necessary repairs of the facility," Precious Okolobo, the spokesman for the SPDC, the Nigerian subsidiary of the Anglo-Dutch oil group, told AFP.

He said Shell had restored a daily oil production of 150,000 barrels per day.

But a force majeure declared in respect of Bonny Light exports following the closure would remain in force, he said.

Force majeure is a legal term releasing a company from contractual obligations due to circumstances beyond its control. Bonny Light is one of the main grades of crude produced in Nigeria.

The TNP has been repeated attacked by vandals and oil thieves with Shell claiming the pipeline has been closed down at least five times since early July.

Oil theft is a major problem in Nigeria, estimated to cost the country at least $6 billion (4.6 billion euros) per year in lost revenue.

Shell has consistently blamed its losses on thieves vandalising its pipelines.

However, environmental activists argue that Shell does not do enough to prevent such incidents and effectively clean up the damage when they do occur.

Nigeria's oil-producing region is badly polluted from decades of oil spills, and Shell is the biggest producer in the west African country, where it has been operating for over 50 years.

Nigeria produces some two million barrels a day of oil and is Africa's largest exporter.

Somalia's Western-backed government is talking to major international oil companies like Exxon Mobil, Royal Dutch Shell and BP about resuming exploration programs abandoned when the East African state collapsed into anarchy in 1991.

On the face of it, that could be an extraordinarily hard sell since Somalia remains highly volatile despite recent military setbacks for the Islamist insurgents of al-Shabaab who are linked to al-Qaida.

What makes it tougher is that Somalia's neighbors, Kenya in particular, have their eyes on potentially large oil and gas reserves in disputed waters in the Indian Ocean.

Al-Shabaab still controls large areas of the Somali countryside and any oil company that ventures into the country risks getting caught up in sharp political rivalries between the fragile central government in Mogadishu and semiautonomous regions like Puntland and the self-declared state of Somaliland in the north. Both have deals with Western oil juniors.

A high-profile Sept. 21 attack by al-Shabaab on an upscale shopping mall in downtown Nairobi, capital of neighboring Kenya, in which at least 67 people were killed points to al-Shabaab widening its terror campaign across East Africa.

On top of this, the Kenyans, who provided troops for an African Union military force that drove al-Shabaab out of Mogadishu and other Somali cities in 2011-12, are trying to set up a buffer zone in a Somali border region known as Jubaland, the better to stake a claim on the disputed waters in the Indian Ocean.

"The world's leading oil companies are increasingly accepting that their quest for new reserves will take them into challenging new territory," analyst Katrina Manson observed.

"In regions such as the Arctic, the problems are technical. Around the Horn of Africa, companies must calculate whether political and security risks will put too heavy a burden on their production costs," she wrote in The Financial Times.

"This is hazardous territory in which to operate. A chunk of Somalia is still under the control of al-Shabaab. Its waters are the hunting ground of pirates, who since 2005 have earned close to $400 million by ransoming 149 vessels."

Despite all this, Abdullah Haidar of Somalia's Ministry of Natural Resources reported recently that discussions in London with the major oil companies, including Conoco Phillips, Chevron Corp. and Eni of Italy, "are going well."

These companies, along with BP and Shell, acquired onshore and offshore exploration blocks in the 1980s during the military dictatorship of Gen. Mohamed Siad Barre.

But when Somali warlords deposed him in 1991, exploration ceased as the country was torn apart by clan warfare. They declared force majeure.

Now several, such as Shell and Eni, want their blocks restored and to enter into production-sharing agreements with the 8-month-old, donor-dependent government of President Hassan Sheik Mohamed that wants to use oil to rebuild the impoverished country's ravaged economy.

The companies are largely tight-lipped about their dealings with Mogadishu, but ENI said its chief executive met with Mohamed in September. Shell said talks are currently "of a preliminary and exploratory nature."

But there is clearly interest because these and other majors have made big strikes across East Africa, particularly with oil around Uganda's Lake Albert and gas off Mozambique and Tanzania.

The only Western company to sign up with Mogadishu so far is the British company Soma Oil & Gas, established in 2012 and headed by Lord Michel Howard, a former Conservative Party leader who's held several cabinet posts.

It signed an agreement Aug. 6 and will conduct seismic surveys in designated areas on land and offshore, and update historic seismic data for the government, in return for nominating exploration and drilling rights for up to 12 blocks.

Somalia's U.N. Monitoring Group warned in a report to the Security Council in July oil exploration across the shattered state risks "exacerbating clan divisions and therefore threatens peace and security. ... Oil companies should cease and desist negotiations with Somali authorities."

Some oil has been found in Somaliland and Puntland, which have largely escaped the violence. But the dozen or so oil companies drilling there have to be protected by militias or private forces.

"It is alarming that regional security forces and armed groups may clash to protect and further Western-backed oil companies' interests," the U.N. warned.

.


Related Links
Powering The World in the 21st Century at Energy-Daily.com






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





ENERGY TECH
Romanian villagers occupy site to prevent Chevron 'fracking'
Pungesti, Romania (AFP) Oct 16, 2013
Romanian police clashed with villagers on Wednesday as they tried in vain to force them off a field they have occupied for a third day to prevent US energy giant Chevron from drilling for shale gas. Hundreds of protesters blocked access to the site at Silistea in eastern Romania where Chevron plans to drill an exploration well, lying down in the mud and holding hands to form a human chain. ... read more


ENERGY TECH
Power plant threat to Bosnia oasis

Global Hydropower Market Continuing to Grow, with Asia-Pacific Keeping the Lead

Balancing Geological Potential and Political Risk

US push for electric power surge in Africa hits climate snag

ENERGY TECH
Chevron in US court to block $19bn Ecuador fine

Senior Dutch diplomat beaten up in Russia

China and Russia to boost energy cooperation

Troubled Somalia hustles Big Oil to resume exploration

ENERGY TECH
Key German lawmaker: End renewable energy subsidies by 2020

Installation of the first AREVA turbines at Trianel Windpark Borkum and Global Tech 1

Trump's suit to halt wind farm project to be heard in November

Ireland connects first community-owned wind farm to grid

ENERGY TECH
KYOCERA Announces Strategic Alliance with IronRidge for Solar Module Mounting Systems

PROINSO presents PV-DIESEL hybrid systems

Trina Solar chief scientist at PVSEC 2013

Trina Solar wins System Integration prize at 2013 Solar Industry Awards

ENERGY TECH
Britain to allow Chinese majority stakes in nuclear projects: Osborne

Mitsubishi says to defend $4bn claim over US nuke plant

Post-Fukushima, Asia still drives global nuclear growth

Once-in-a-decade typhoon heads for Japan nuclear plant

ENERGY TECH
Ethanol not a major factor in reducing gas prices

Boeing, South African Airways Launch Sustainable Aviation Biofuel Effort in Southern Africa

Metabolically engineered E. coli producing phenol

Team uses a cellulosic biofuels byproduct to increase ethanol yield

ENERGY TECH
Ten Years of Chinese Astronauts

NASA vows to review ban on Chinese astronomers

China criticises US space agency over 'discrimination'

NASA ban on Chinese scientists 'inaccurate': lawmaker

ENERGY TECH
US Supreme Court to hear greenhouse gas cases

'Stadium waves' could explain lull in global warming

US Supreme Court agrees to hear greenhouse gas cases

Terrestrial ecosystems at risk of major shifts as temperatures increase




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement