The company Adam Smith International (ASI) produced a report in March funded by the British government, entitled Needs Assessment for the Development of Somalia’s Extractive Industries. The report produced something of a bombshell in Mogadishu. After delicate discussions and a threat by the government of Somalia to make its indignation public, the release of the report to donor was blocked.
ASI was given the task of producing this study last year after President Hassan Sheikh Mohamud asked the British government for technical support. Mohamud expected that the report would conclude in the necessity of providing aid to the federal government in various relevant areas (such as geophysics, engineering, law, accounting and interpreting data) and also for negotiating with the oil majors. ASI rejected this option, deeming that it would exacerbate the risk of internal conflict between the regional authorities and Mogadishu. Instead, the ASI report recommends a lengthy process in which “development partners” would act as mediators between Mogadishu and the regional administrations, particularly concerning sharing resources. ASI even recommended that no oil contract should be concluded with Mogadishu without a constitutional consensus, making this a necessary condition for international technical assistance.
Last month, the director general of the Somalian oil ministry, Farah Abdi Hassan, (see p.8) issued a response to the British consultants. In it, he considered that ASI’s solution ran counter to Mogadishu’s oil strategy, which is to rapidly develop Somalia’s potential and encourage the majors who have obtained concessions prior to 1991 to resume their activity in the country or to relinquish their rights.
ASI was given the task of producing this study last year after President Hassan Sheikh Mohamud asked the British government for technical support. Mohamud expected that the report would conclude in the necessity of providing aid to the federal government in various relevant areas (such as geophysics, engineering, law, accounting and interpreting data) and also for negotiating with the oil majors. ASI rejected this option, deeming that it would exacerbate the risk of internal conflict between the regional authorities and Mogadishu. Instead, the ASI report recommends a lengthy process in which “development partners” would act as mediators between Mogadishu and the regional administrations, particularly concerning sharing resources. ASI even recommended that no oil contract should be concluded with Mogadishu without a constitutional consensus, making this a necessary condition for international technical assistance.
Last month, the director general of the Somalian oil ministry, Farah Abdi Hassan, (see p.8) issued a response to the British consultants. In it, he considered that ASI’s solution ran counter to Mogadishu’s oil strategy, which is to rapidly develop Somalia’s potential and encourage the majors who have obtained concessions prior to 1991 to resume their activity in the country or to relinquish their rights.
In the report is an open letter from Saraar community and other matters regarding Somaliland and its oil interest.
Read the 88 page report in PDF
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