Somalia’s Gov’t Denounces Genel Energy’s Claim of Oil Rights in Somaliland
Women walk in front of a gas station in the city of Hargeisa, Somaliland, on September 15, 2021. 
Recent oil discoveries in East African countries such as Uganda and Kenya, as well as gas discoveries in Mozambique and Tanzania, have drawn international oil companies’ attention to other parts of the region. Somalia is perceived as a highly prospective country with rich hydrocarbon resources. Somalia’s government has condemned Genel Energy’s oil exploration in the country’s northern region of Somaliland, rejecting the UK-based firm’s “illegal claim” to have production and exploration rights in the area.
“The Federal Government of Somalia categorically rejects Genel Energy PLC’s claim to own petroleum rights in Somalia’s northern regions and calls upon Genel Energy PLC to cease its illegal claim to own petroleum rights and to conduct petroleum operation in violation of Somalia’s sovereignty, territorial integrity, and unity,” the country's Ministry of Petroleum and Mineral Resources said in a statement.
According to the ministry, the government “has been closely monitoring the illegal petroleum operations” in the breakaway northern province, which reportedly issued exploration rights to Genel Energy.Invoking the principle of permanent sovereignty over natural resources, Mogadishu underlined that investors carrying out exploration in the country must abide by its laws, noting that only the ministry is authorized to issue permits for the exploration and development of petroleum resources.
"Any authorisation granted in violation of Somalia's laws and regulations is unlawful and would be considered null and void," the statement read.
The government likewise threatened to “take all possible measures and pursue all legal avenues” in case of any “violation of its sovereignty over its resources.” Somaliland declared independence from Somalia in 1991, but the region failed to gain international recognition. It is currently a de facto sovereign state, but remains de jure a part of Somalia. Genel Energy, which is listed on the London Stock Exchange, has been dealing with Somaliland since 2012. The company received an exploration license from Somaliland authorities for two onshore blocks in the region. Last year, it signed a farm-out agreement with OPIC Somaliland Corporation for an oil block along the border of Ethiopia and Somalia. According to the company, onshore Somaliland is a mainly unexplored area with few drilled wells. The company is currently preparing to start the drilling of a well on a “highly prospective” block, as stated on its website. Earlier this month, Genel Energy informed that its geotechnical survey in the region had finished. In October, Somalia inked a seperate exploration agreement with United States-based Coastline Exploration, an oil and gas company focused on East Africa, for seven offshore blocks. The company stated that the $7 million signature bonus to the country’s government and now is ready to start exploring.
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