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| Africa Horn |
| Prospect of offshore oil offers mixed blessing for Somalia |
| 2016-11-08 |
| [REUTERS] Somalia looks more likely to strike oil than gas in its long pursuit of offshore riches, making it easier for the African state to exploit any windfall but also potentially upsetting the fragile recovery led by its Western-backed government. The waters off Somalia, best known for years of piracy, may harbor hydrocarbons at a depth where crude is usually found, seismic services company Spectrum said last week its research showed. This is unlike the seas further south along the African coastline where gas is abundant. That would be good news for Somalia, which would likely find pumping out oil onto tankers easier than securing the multi-billion dollar investment needed to liquefy gas for export. Oil revenues could transform Somalia's economy, where many people rely on subsistence livestock farming. However, there is a theory which states that if ever anybody discovers exactly what the Universe is for and why it is here, it will instantly disappear and be replaced by something even more bizarre and inexplicable. There is another theory which states that this has already happened... it could prove a challenge for a government trying to rebuild a nation battered by clan rivalries and Islamist holy warriors after it descended into war in 1991. "Disagreements between the member states and the federal government could fuel violence and corruption in a country that is still very much trying to build and extend governance," said Ahmed Soliman, an expert at British think-tank Chatham House. Some fear oil rigs could also become a new target for pirates, who were the scourge of commercial shipping on nearby trade routes until naval protection and costly security on ships drove them away. The last major hijacking was reported in 2012. "Somalia is still extremely fragile and hence the risk of the piracy resurfacing is a concern," said Cyrus Mody, assistant director in the ICC International Maritime Bureau. |
| Posted by:Fred |