Somalia denies selling oil blocks in Kenya

Somalia has declared that it has not auctioned oil blocks in a disputed part of the Indian Ocean, contrary to Kenya's claims that led to the convening of its ambbadador in Mogadishu.

Last night, Somali Foreign Minister Ahmad Isse Awad said in a diplomatic response: "Somalia is not proposing or proposing any block in the disputed sea zone until the ICJ decides on the border. maritime parties ". International Court of Justice).

The response, forwarded to the Kenyan Embbady in Mogadishu, consisted of a letter written in an unusual diplomatic format, taking the first person plural instead of the usual third person.

At the time of printing, Nairobi was still to receive the letter.

"The Somali government is keen to rebadure the Kenyan government of its commitment not to engage in unilateral activities in the disputed area until the International Court of Justice renders its judgment," the minister added.

Mogadishu was referring to a case in which he has sued Kenya before an international court, where Kenya is seeking to ensure that the maritime boundary between the two lies parallel to the latitude from Kyunga to the south. Somalia wants it to work diagonally, as an extension of the land border.

But the real cause of friction is a presentation made last week by the Somali Federal Ministry of Petroleum and Mineral Resources, describing the profile of its oil stock to London investors, in which it promised better returns to those who would accept the oil. 39; offer.

In the document, the Somali government offered the blocks to investors, driven by the seismic data collected by the consulting firm Spectrum Geo.

Under the Protocol, investors have until July 11 of this year to apply for eligibility, after which three months of interaction will be required to determine the final agreement on the sharing revenues.

The offer also indicates that consortia should be formed on 17 October, before successful bids are notified on 7 November.

Winners will then be invited to sign production agreements by December 9th.

The Somali government sold its oil stocks to investors by proposing what it called better production sharing agreements (PSAs).

In oil production, PSAs are special contracts that explain the percentage share of oil or revenues of the government and mining companies. Sometimes it can be 50:50.

In the case of Somalia, Mogadishu offered "a very modest share of production" based on the revenue factor, including signing bonuses of up to $ 2 million (200 million shillings) or more for oil.

"The contract includes a fiscal stability clause guaranteeing that conditions will not change, with the exception of generally applicable tax changes at non-discriminatory rates," proposed the Somali delegation led by the Minister of Petroleum, Abdirashid Mohamed Ahmed .

Mogadishu will earn 15% in royalties and revenues will be determined based on the number of barrels mined.

The 15 oil blocks are mainly in Somali waters, much to the north of Kenya's disputed line.

But three of them are in an area called the Juba-Lamu Basin, considered by consultants as the southern area.

"To the south, the underlying colder oceanic crust allows the temperature to rise slowly with depth, so that the main deeper buried (3-4 km) mother rocks in this region are still producing oil by chance, nowadays. "hui", reported by Spectrum Geo said.

Somalia argues that even though the border line followed Kenya's appeal to the ICJ that it was paralleling eastward, the three blocks would still be in its territory.

If the ICJ decides in favor of Mogadishu, the blocks will still be in Somali territory.

The Kenyan government, for its part, has published a map showing blocks L21, L23, L24 and L25 in the disputed area identical to those proposed by Somalia.

These blocks are in an area of ​​approximately 100,000 square kilometers in a triangle east of the Kenyan coast.

As ICJ decisions are binding, Kenya could lose all blocks in the disputed area if it loses the case.

But there were indications that relations between the two countries will not be ruined by the dispute.

Kenya's Secretary General of Foreign Affairs Macharia Kamau announced on Saturday that Nairobi had summoned his envoy to Mogadishu, Lucas Tumbo, and asked Somalia's ambbadador, Mahmud Ahmed Nur, to return "for consultations. "on his country's decision to" auction "oil blocks owned by Kenya.

Yesterday he urged the Somali government to take the matter seriously.

"We urge Somalia to take seriously the concerns we have expressed as a country. If what our claim [on the auction] It will not hurt to pick up a phone, correct the situation, or drop a note and clarify things, "he said, denying allegations that the government has recalled his ambbadador to Somalia expelled from his duties in Kenya.

Nairobi and Mogadishu both came down from the non-diplomatic language discussed at Kamau's press conference on Saturday, the PS explaining that the convocation of ambbadadors was only an occasion to obtain information. "credible" about the situation.

In fact, the summoning of diplomats is a usual political protest that does not go beyond a verbal protest, often sanctioned by the president.

In the case of Kenya and Somalia, the two embbadies will continue to function normally, as seen when the Kenyan embbady received the note verbale (diplomatic letter) from Mogadishu.

On the other hand, recalling or expelling an ambbadador is a stronger protest that could lead to a breakdown in diplomatic relations.

For example, South Africa recently recalled its envoy to Rwanda following an insult allegedly published by a Kigali newspaper targeting the Pretoria Foreign Minister.

At the same time, a committee of the Upper House of Somalia issued a four-point statement on the issue.

Speaking in Nairobi, Senator Ilyas Ali Hbadan, Chairman of the National Resources, Infrastructure and Transport Committee of Somalia's Upper House, said the decision of President Mohamed Abdullahi Mohamed "to break the laws from the country".