In brief
- On 6 August 2014, Somaliland Sun reported that Norwegian oil company DNO had established operational bases in Somaliland to fulfil contractual arrangements with the government.
- The report said DNO had contracted Zambian specialists for water projects and that two expert teams were assessing environmental and geological impacts in Block 18.
- The Ministry of Energy and Minerals had not issued a statement, and the report did not establish what happened after that date.
Somaliland Sun reported on 6 August 2014 that Norwegian oil company DNO had established operational bases in Somaliland, a move it linked to fulfilling contractual arrangements under an agreement with the Somaliland government. The report attributed the claim to unnamed sources and said the ministry of energy and minerals had not issued any statement on the development.
According to Somaliland Sun, a team of Zambian specialists contracted by DNO was exploring how to provide safe drinking water to residents of El-afweine, Dararweine and Hudun districts in eastern Somaliland. The report also said two more teams of experts on DNO contracts were in the country to conduct environmental and geological impact assessments within Block 18, citing unspecified reports from Hargeisa.
The publication said DNO signed a Production Sharing Contract covering Block SL 18 onshore Somaliland in Washington DC in April 2013. It described an announcement on 7 January 2014, after consultations with President Ahmed M Silanyo and ministers of foreign affairs and energy in Hargeisa, that DNO intended to pursue contractual agreements.
Somaliland Sun stated that DNO was the second foreign company to start implementing its oil exploration and extraction contract with the Somaliland government, after Genel Energy. The report passed on a claim that Genel's concessions in Togdeer region hold proven reserves in the billions of barrels, without offering an independent basis for that figure.
The report described a Special Oil Protection Unit recruited from the Somaliland police force, saying its commissioning was imminent and that, reportedly, it was ready to provide security for future seismic and drilling operations. It said the unit was trained by former UK Special Forces officer Iain Cholerton. The report also referred to criticism of the unit in a May 2014 memorandum of the UN Monitoring Group on Somalia and Eritrea, but the sentence was garbled and the finding was not quoted.
Somaliland Sun's sources said rumours of discord among some clans in eastern Somaliland over foreign oil exploration were nothing more than rumours. The report did not establish what has happened since 6 August 2014, and the ministry of energy and minerals had not commented as of that date.
Frequently asked questions
What specific obligations was DNO reported to be fulfilling?
Somaliland Sun said DNO was fulfilling contractual arrangements under an agreement with the Somaliland government, including operational bases, environmental and geological assessments in Block 18, and a water project by contracted Zambian specialists in three eastern districts.
What construction or drilling activities were reported as required?
The report mentioned future seismic and drilling operations and an Oil Protection Unit to secure exploration and extraction, but it did not state that any drilling or construction had started.
What is the timeline and financial commitment?
The report gave no contract value, duration, or financial commitment for the DNO agreement or the Zambian specialist team. The ministry had not issued a statement as of 6 August 2014.