19/08/08 (B461) Shabelle and Alwatan / Somali Gov makes oil deal with KEC and Medco Energi International

_______________________________ Note de l’ARDHD

Une guerre sans des intérêts pétroliers ne dure jamais aussi longtemps. La clef de l’énigme ???

By: Abdinasir Guled

The government of Somalia signed a shareholders agreement with Kuwait Energy Company (KEC) and Indonesia »s Medco Energi International Tbk on Tuesday to govern the activities at the Somalia Petroleum Corporation.

According to the agreement, the government of Somalia will hold a 51 percent stake, while Kuwait Energy Company and Medco Energy International will each hold 24.5 percent.

Addressing the members of the press on the sidelines of the signing ceremony, Somalia »s Minister of Energy and Mining, Eng. Mohamoud Ali Salah Kanje said: « This is a milestone event for the Republic of Somalia. Forming Somalia Petroleum Corporation not only provides a firm and transparent basis for developing the oil and gas industry in Somalia, but it in addition it enables the Ministry of Energy and Mining to tap into the natural resources of the country to generate revenue for its people thereby eradicating the prevailing poverty and eliminating the prevailing instability. »

The deal comes as a part of the Petroleum Law of Somalia which was approved by the President Abdullahi Yousef Ahmed on August 7.

Commenting on the strategic tie up, CEO of Kuwait Energy Company, Sara Akbar, said: « We are delighted to have executed the Shareholders » Agreement with the Transitional Federal Government of the Republic of Somalia along with our strategic partner in Indonesia, Medco Energi International. The three of us have been working closely for three years to get the Petroleum Law of Somalia enacted and form the Somalia Petroleum Corporation. We hope this collaboration will not only generate income for Somalia, but will also assist in building the infrastructure of the country for the general welfare of its people. We are very happy to be able to help Somalia and look forward to continued cooperation. »

Meanwhile, commenting on the tie up with KEC and Somali government, CEO of Medco Energi International, Darmoyo Doyoatmojo said: « Medco is proud to have been the pioneer, along with its partner Kuwait Energy Company, and a catalyst for building the foundations of the oil industry in Somalia. The oil and gas industry could prove to be a significant source of income for the Government, while directly or indirectly reducing unemployment in the years to come, leading to the establishment of local Somali service companies. We look forward to building our relationship in Somalia. »

Somalia has been without a fully functioning central government since 1991. De facto decentralization of political power occurred in the 1990 »s, with varying degree of control achieved by militia and clan leaders in some parts of the country, while traditional forms of governance reـestablished political stability and functioning administration in other regions, namely Puntland and Somaliland.

It is anticipated that following the enactment of the Petroleum Law and the formation of the national petroleum company, there will be a model production sharing agreement, with the intent of launching an international bidding round for exploration blocks in Somalia during 2009.