Hobyo to begin drilling for oil, FGS Ministry of Petroleum reach Dhusamareb

[bidenkulaha]

The engineers and Mareeyaha guud are reer Galmudug, the Minister is too and first drilling is happening in Hobyo. We had some guy here claim Xawadle will open Galmudug oil

On the topic at hand, this is incredibly quick progress from the FGS. Galmudug (Hirshabelle the other) is said to have the most potential in the oil blocks after the surveys done in HSM’s last term. You can see why the FGS has focused on clearing Shabaab from Xamar to xarardheere. And also why the US has made a base in Hobyo, Galcad

 

[abzmuumin1]

I am happy for Reer Galmudug and their hormar Mashallah

 

[bidenkulaha]

I am happy for Reer Galmudug and their hormar Mashallah

If this works out don’t worry we’re all fleeing back to Galmudug

 

[abzmuumin1]

Hopefully they can focus on improving hobyo and Galmudug and leave Baraawe and KGS for its natives inshallah.

 

[abzmuumin1]

If this works out don’t worry we’re all fleeing back to Galmudug

If that's the case then I'll be praying for this to be successful great news

 

[GaradShabeel]

They're engaged in oil exploration, not drilling. The guy in the video even said: reer Galmudug, don't get too excited *yet*, as nothing is for certain now. @bidenkulaha you just did what you were told not to do

 

[bidenkulaha]

They're engaged in oil exploration, not drilling. The guy in the video even said: reer Galmudug, don't get too excited *yet*, as nothing is for certain now. @bidenkulaha you just did what you were told not to do

I like to spice up my titles exploration doesn’t make an interesting thread

 

[GaradShabeel]

I like to spice up my titles exploration doesn’t make an interesting thread

Aight

Is there a map of the blocks they're exploring now, or is it across the entire GM coastline? It's interesting that chose to start off with Hobyo, considering there aren't a formal land border demarcation between PL and GM now. It might be the same with the sea demarcation too.

 

[bidenkulaha]

Aight

Is there a map of the blocks they're exploring now, or is it across the entire GM coastline? It's interesting that chose to start off with Hobyo, considering there aren't a formal border demarcation between PL and GM now.

They’ve already done surveys. It’s not that far behind and they should have a rough idea where it’s likely to have oil but Yh still needs the actual 3D seismic survey which is planned for November onwards. 2025/2026 drilling

these are the 3 blocks being explored in Galmudug.

 

[GaradShabeel]

They’ve already done surveys. It’s not that far behind and they should have a rough idea where it’s likely to have oil but Yh still needs the actual 3D seismic survey which is planned for November onwards. 2025/2026 drilling

View attachment 284222 these are the 3 blocks being explored in Galmudug.

@abzmuumin1 You might find block 191 and 192 to be interesting


Let's hope that GM doesn't make the same mistake as other countries when they sign away a large percentage of the profit sharing away to the drilling company (if they manage to find oil). Which I assume will be a foreign large oil corporation, who tend to demand a big cut of the revenue.

 

[bidenkulaha]

@abzmuumin1 You might find block 191 and 192 to be interesting


Let's hope that GM doesn't make the same mistake as other countries when they sign away a large percentage of the profit sharing away to the drilling company (if they manage to find oil). Which I assume will be a foreign large oil corporation, who tend to demand a big cut of the revenue.

This is FGS contract. I think the revenue share was something like 50% the FMS, 40% FGS and 10% split between the other states.

 

[johnsepei5]

What does America get out of this

 

[Pastoralist]

This is bigger than oil. They’re employing their own people for exploration. If they use this same tactic when drilling begins. This gobol has a future. When they cut a deal I don’t expect it to be in their favour, but even if it’s 40-60. GM will be looking at hundreds of billions.

This is FGS contract. I think the revenue share was something like 50% the FMS, 40% FGS and 10% split between the other states

Where’s the cut for the oil company

 

[bidenkulaha]

I meant the profit/revenue sharing between the drilling company and FMS/FGS.

I checked and so originally 80-20 coastline and then 28% for Coastline and 72% for Somalia when 80% of cost is recovered

 

[bidenkulaha]

Profit level will not be particularly high for a long time as the investment required by the companies producing will take a while to recover but we need the jobs and industry. We shouldn’t view this as get quick rich scheme.

Also offshore is less profitable than onshore. Cost of production will not allow high profit margins at current oil prices

 

[GaradShabeel]

What does America get out of this

@bidenkulaha just told you that America did recently set-up a base nearby. We know what that means when piracy for an 'unknown' reason may resurge in a near future. AS might be blamed for it. Remember where you heard it first @Step a side

 

[bidenkulaha]

@bidenkulaha just told you that America did recently set-up a base nearby. We know what that means when piracy for an 'unknown' reason may resurge in a near future. AS might be blamed for it. Remember where you heard it first @Step a side

America will have an interest in Somalia. If they start producing offshore oil Somalia I’m sure they’ll next focus on the much more lucrative onshore and that requires a stable Somalia. At least in times of land control, even if they might not want a strong state that can renegotiate better terms

 

[Pastoralist]

If drilling starts soon it may be in our best interest to invest in naval assets. To protect the export of oil.

 

[GaradShabeel]

America will have an interest in Somalia. If they start producing offshore oil Somalia I’m sure they’ll next focus on the much more lucrative onshore and that requires a stable Somalia. At least in times of land control, even if they might not want a strong state that can renegotiate better terms

The biggest issue with onshore drilling isn't even stability in terms of governance, ie a strong state externally, but rather the obstacle the might come with local clans pulling 'unuka leh' on entire land and claiming all of its resources. Unless you buy the land, including state gov'ts, before you venture there, you'll otherwise stumble upon never-ending squabble. Even afterwards, you're not guaranteed that it will be smooth. Let's stick to off-shore exploration/drilling until we establish strong institutions.

 

[bidenkulaha]

The biggest issue with onshore drilling isn't even stability in terms of governance, ie a strong state externally, but rather the obstacle the might come with local clans pulling 'unuka leh' on the entire land and claiming all of its resources. Unless you buy the land before you venture there, you'll stumble upon never-ending squabble. Even afterwards, you're not guaranteed that it will be smooth. Let's stick to off-shore exploration/drilling until we establish strong institutions.

I mean exactly but they manage it in Syria and Iraq. America has been building military bases protecting oil projects in Syria. It actually could increase stability in terms of clans conflict but worsen our sovereignty

US building new military bases in Syria's oil-rich area

We perversely could benefit from being ripped off there used to be little incentive for America to truly sort out Somalia but that’s changing as they lose allies and China gains in Africa and the Middle East. They need a client state like ours