Opinion
Canadian Oil Exploits And Somalia’s Future
Energy companies are renowned for taking risks as they scour the globe for new opportunities. That said however, Canada’s Vancouver, BC-based Horn Petroleum Corporation, a unit of Africa Oil Inc., is in a class by itself, having begun drilling operations in Somalia’s semi-autonomous northern Puntland state.
Somalia? Which has not had an effective government since 1991?
Land of “Black Hawk Down,” pirates, battling militias, al Shabaab militants and United States drone strikes against the extremist group?
Yep.
On 17 January the company said in a press release that it is “pleased to announce the spudding (drilling) of the Shabeel-1 well on the Dharoor Block in Puntland, Somalia… operations have also commenced on the Shabeel North-1 well.”
Horn Petroleum Corporation’s decision to take the gamble has clearly enthralled Puntland’s politicians – Puntland President Abdirahman Mohamed Farole opened the ceremony to commence drilling the Shabeel 1 well in the Dharoor block in northern Puntland and gushed that the well drilling was “a big day for the people of Puntland and Somalia in general. We will no longer be begging people for resources after the drilling of the oil wells.”
According to him, “our young educated men and women will not suffer unemployment, everyone including ordinary labourers will have their opportunity. If the operation is successful in finding oil, it is an opportunity for the Puntland economy to grow helping create jobs for many people that are unemployed.”
Not surprisingly, Puntland officials provided tight security at the site, with hundreds of heavily armed troops deployed to protect the petroleum operations. The United Nations says Somalia is the world’s worst humanitarian crisis, while regional armies and the Western-backed government battle al Qaida al Shabaab linked insurgents in the center and south of the country.
Horn Petroleum Corporation President and CEO David Grellman stated, “The commencement of drilling in the Dharoor Valley block is a major milestone in the evaluation of the oil potential of Northern Somalia. We have had very strong support from the Puntland regional government and the local communities who are all keen to see development resume in the region after prolonged periods of internal strife. These wells are the first to be drilled into the deep areas of the rift basins and will be key to unlocking the hydrocarbon potential of this unexplored prospective trend.”
Horn Petroleum Corporation’s optimism knows no bounds, as drilling operations have also begun at a second well, Shabeel North-1, in Puntland’s Nugal region. The pair of wells are being drilled to a total planned maximum depth of 2.3 miles.
Why Horn Petroleum Corporation’s interest in Africa’s most prominent contender for the title of “failed nation state?”
Oil potential, lots of it.
Puntland Petroleum and Minerals Agency head Issa Farah estimates that the region where the wells are being drilled may have reserves of up to four billion barrels of recoverable oil, adding, that Puntland would not allow this “historic project” to become a curse, as oil has proved in some other African countries remarking.
“Before any barrel of oil comes out will have a policy that will benefit our own people and will not be detrimental to us. We want this to be something that can improve our lives, not take us back into the dark ages,” he said.
Horn Petroleum Corporation is more modest in its assessments of the areas’ potential reserves, reporting, “Both prospects are very large fault block prospects with internal most likely estimates of potential oil volumes of over 300 million barrels of recoverable oil.”
Horn Petroleum Corporation holds a 60 per cent interest in the Dharoor and Nugaal blocks, which it describes as “encompassing a Jurassic Rift Basin on trend and analogous to the large oil fields in Yemen.”
Horn Petroleum Corporation’s other foolish – err, bold, partners in the Dharoor concession bloc are Australian firms Range Resources Ltd. and Red Emperor Resources NL, each with a 20 per cent interest.
Perhaps emboldening Horn Petroleum Corporation’s gamble, last September the US State Department’s Bureau of African Affairs Assistant Secretary Johnnie Carson announced, “We will work to engage more actively with the governments of Puntland and Somaliland. We hope to be able to have more American diplomats and aid workers going into those countries on an ad hoc basis,” referring to both Somaliland and Puntland as “countries.”
Carson added, “Both of these parts of Somalia have been zones of relative political and civil stability, and we think they will, in fact, be a bulwark against extremism and radicalism that might emerge from the south.”
Oh, except for the fact that most of the pirates harassing Indian Ocean shipping are based there.
Never mind the fact that a number of young US Muslims are taking high-visibility propaganda and operational roles inside al Shabaab and that a recent report from the House Homeland Security Committee noted that more than 40 people have traveled from the US to Somalia to join al Shabaab since 2007 and 15 of them have died. Federal investigations into al Shabaab recruitment in the US have centered on Minnesota, which has more than 32,000 Somalis.
We’ll leave the last word to Puntland Petroleum and Minerals Agency head Farah, who said, “I think in 10 years’ time – if oil is found, we will see a better country, a stronger country that lives in peace and prosperity with its own neighbours and hopefully that produces what we have been all looking for – peace, prosperity, development and progress.
Gentlemen, place your bets.
Dr. Daly of Oilprice.com, writes from London.
John Daly
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Empowering Youth Through Agriculture
Quote:”While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries”.
The Governor of Rivers State, Sir Siminalayi Fubara, recently urged youths in the Rivers State to take advantage of the vast opportunities available to become employers of labour and contribute meaningfully to the growth and development of the State. Governor Fubara noted that global trends increasingly favour entrepreneurship and innovation, and said that youths in Rivers State must not be left behind in harnessing these opportunities. The Governor, represented by the Secretary to the State Government, Dr Benibo Anabraba, made this known while declaring open the 2026 Job Fair organised by the Rivers State Government in partnership with the Nigeria Employers’ Consultative Association (NECA) in Port Harcourt. The Governor acknowledged the responsibility of government to create jobs for its teeming youth population but noted that it is unrealistic to absorb all job seekers into the civil service.
“As a government, we recognise our duty to provide employment opportunities for our teeming youths. However, we also understand that not all youths can be accommodated within the civil service. This underscores the need to encourage entrepreneurship across diverse sectors and to partner with other stakeholders, including the youths themselves, so they can transition from being job seekers to employers of labour,” he said. It is necessary to State that Governor Fubara has not only stated the obvious but was committed to drive youth entrepreneurship towards their self-reliance and the economic development of the State It is not news that developed economies of the world are skilled driven economies. The private sector also remains the highest employer of labour in private sector driven or capitalist economy though it is also the responsibility of government to create job opportunities for the teeming unemployed youth population in Nigeria which has the highest youth unemployed population in the subSahara Africa.
The lack of job opportunities, caused partly by the Federal Government’s apathy to job creation, the lack of adequate supervision of job opportunities economic programmes, lack of employable skills by many youths in the country have conspired to heighten the attendant challenges of unemployment. The challenges which include, “Japa” syndrome (travelling abroad for greener pastures), that characterises the labour market and poses threat to the nation’s critical sector, especially the health and medical sector; astronomical increase in the crime rate and a loss of interest in education. While job seeking youths should continuously acquire skills and explore opportunities within their immediate environment as well as in the global space through the use of digital platforms, government, corporate/ multinational organizations or the organised private sector should generate skills and provide the enabling environment for skills acquisition, through adequate funding and resettlement packages that will provide sustainable economic life for beneficiaries.
While commending the Rivers State Government led by the People First Governor, Sir Siminilayi Fubara for initiating “various training and capacity-building programmes in areas such as ICT and artificial intelligence, oil and gas, maritime, and the blue economy, among others”, it is note-worthy that the labour market is dynamic and shaped by industry-specific demands, technological advancements, management practices and other emerging factors. So another sector the Federal, State and Local Governments should encourage youths to explore and harness the abounding potentials, in my considered view, is Agriculture. Agriculture remains a veritable solution to hunger, inflation, and food Insecurity that ravages the country. No doubt, the Nigeria’s arable landmass is grossly under-utilised and under-exploited.
In recent times, Nigerians have voiced their concerns about the persistent challenges of hunger, inflation, and the general increase in prices of goods and commodities. These issues not only affect the livelihoods of individuals and families but also pose significant threats to food security and economic stability in the country. The United Nations estimated that more than 25 million people in Nigeria could face food insecurity this year—a 47% increase from the 17 million people already at risk of going hungry, mainly due to ongoing insecurity, protracted conflicts, and rising food prices. An estimated two million children under five are likely to be pushed into acute malnutrition. (Reliefweb ,2023). In response, Nigeria declared a state of emergency on food insecurity, recognizing the urgent need to tackle food shortages, stabilize rising prices, and protect farmers facing violence from armed groups. However, without addressing the insecurity challenges, farmers will continue to struggle to feed their families and boost food production.
In addition, parts of northwest and northeast Nigeria have experienced changes in rainfall patterns making less water available for crop production. These climate change events have resulted in droughts and land degradations; presenting challenges for local communities and leading to significant impact on food security. In light of these daunting challenges, it is imperative to address the intricate interplay between insecurity and agricultural productivity. Nigeria can work toward ensuring food security, reducing poverty, and fostering sustainable economic growth in its vital agricultural sector. In this article, I suggest solutions that could enhance agricultural production and ensure that every state scales its agricultural production to a level where it can cater to 60% of the population.
This is feasible and achievable if government at all levels are intentional driving the development of the agricultural sector which was the major economic mainstay of the Country before the crude oil was struck in commercial quantity and consequently became the nation’s monolithic revenue source. Government should revive the moribund Graduate Farmers Scheme and the Rivers State School-to-Land agricultural programmes to operate concurrently with other skills acquisition and development programmes. There should be a consideration for investment in mechanized farming and arable land allocation. State and local governments should play a pivotal role in promoting mechanized farming and providing arable land for farming in communities. Additionally, allocating arable land enables small holder farmers to expand their operations and contribute to food security at the grassroots level.
Nigeria can unlock the potential of its agricultural sector to address the pressing needs of its population and achieve sustainable development. Policymakers and stakeholders must heed Akande’s recommendations and take decisive action to ensure a food-secure future for all Nigerians.
By: Igbiki Benibo
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