Kuwait’s KEC signs illegitimate agreement with Somali Warlord
Energy Company (KEC) has signed a partnership agreement with the Somali
government and Indonesia’s PT Medco Energi Internasional Tbk to set up a
state oil firm in Somalia. The agreement gives newly established Somali
National Petroleum Company (SNPC) 51%, and KEC and Medco will own the
remaining percentage equally.
The agreement, which was signed in Kuwait, comes at time fighting and
turmoil swept across the country, and even the average Somali citizens
are not getting food and water. The leader of Transitional Government of
Somalia (TGS) Abdullah Yusuf approved Petroleum Law on August 7, 2008;
the law delayed due to disputes with Former Prime Minister Ali Geedi.
There is widespread violence and killing in the capital city of
Somalia, Mogadishu; the government, which signed the agreement with KEC,
does not control even one single inch in Somali territory; Somalis
accuse TGS leadership in Mogadishu for corruption and organized killing;
TGS failed to restore the law and order in the capital.
Nevertheless, Abdullah Yusuf signed petroleum agreements with
Australian companies; it is not possible to sign petroleum agreements
with foreign parties while you failed to provide the basic social rights
like security, water, schools and other fundamentals of human life.
International aid organizations are unable to supply food and water
to displaced Somalis due to the bad security situation; even SNPC does
not have headquarter and offices inside Somalia for the aforesaid
reasons. Somalia needs government that restores security and basic human
livings before signing the millions of dollars agreements.
Somalia failed 20 years ago, there is no rule and order; there is no
constitution and accountability; no courts and police. The warlords or
leaders are free to sell the national resources like oil to outside
world without been asked why!
TGS leader Abdullah Yusuf is trying to appoint new ambassador to
Kuwait, in order the new ambassador to process the under table oil
contracts with Kuwaiti companies and across the gulf region. The four
years term of Abdullah will end next Aug 2009, so the money from the oil
will enable him to campaign in next election and lead Ethiopian
occupation in Somalia.
In the same way, “Puntland”, Somali State in West-East Somalia, led
by Adde Moose, signed similar oil exploration agreements with Australian
companies; Moose, later, failed to provide security to oil exploration
staffs. Somali Intellectuals described the current oil agreements by TGS
leaders with KEC illegal and illegitimate because the natural resource
does not belong to leader or group but the Somali people, and lack of
“Puntland” was formed in 1998, as it not existed in the Somali
history, by group of tribesmen led by TGS leader Abdullah Yusuf. Human
rights organizations accused “Puntland” for sponsoring human trafficking
into Arabian Gulf and hijacking the foreign aid workers in addition
capturing the foreign ships and asking ransom money.
The security of “Puntland” is deteriorating as the shooting and
killing is on daily bases. The civilians are armed with AK 47 in the
streets in the lawless “Puntland”.
In Somalia, it is not the right time for good leader to think of
exploring the oil; thousands of Somalis are starving to death in the
refuge camps in the neighboring countries like Ethiopia and Kenya. The
UNHCR expressed concern over the faith of thousands of Somalis because
of the famine and starvation.
TGS’s eagerness to sign the oil contracts across the world including
Kuwait is an attempt to collect big dirty money. These foreign partners
fall victim of cheating and delusion; while the poor Somalis die for
The illegitimacy of Partnership Agreement between KEC and TGS
A partnership agreement allows you to structure your relationship
with your partners in a way that suits your business. You and your
partners can establish the shares of profits (or losses) each partner
will take, the responsibilities of each partner, and defines what will
happen to the business if a partner leaves, and other important
Base on the above definition of Partnership Agreement, the agreement
between KEC and TGS is illegitimate for many reasons: Somali Minister of
Oil Eng. Maxamud Cali Saalax Kaanje, who signed the deal, resigned from
the cabinet last month; TGS can not take responsibility of sharing the
profit or loss with KEC as it may disappear like many other governments
in Somalia; TGS don’t represent the people of Somalia; TGS don’t control
the areas with oil reserves in Somalia, and if TGS loose the power the
next Somali government will not recognize the agreement because of
violence and lack of rule and order in the country.
The establishment of SNPC needs the support of all Somalis across the
country, because oil is one of the major natural resources in Somalia.
Also influential countries like Ethiopia and USA involve in Somali.
A reliable Somali sources said, Former Prime Minister Ali Geedi
accepted this offer from KEC but TGS President Abdullah Yusuf rejected
it, and introduced Chinese Company called (CNOOC). Such disagreements
accelerated the faith of Geedi’s administration.
Yusuf cannot step foot on Somaliland – former northern regions of
Somalia – because the region declared independence from the rest of
Somalia. The majority of Somali oil reserves are in “Puntland” and
Somaliland. “Puntland” is also leaving Abdullah’s dictatorship.
In other hand, Abdullah Yusuf and his government including Eng.
Maxamud Cali Saalax Kaanje don’t control the southern parts even the
capital city, Mogadishu. The question lingering in my mind is, where
will KEC carry out its operation in Somalia as per agreed? Is the oil
under the Villa Somalia, Abdullah’s residence, because TGS government
controls only its offices?
Somalia, many described it as failed nation, suffers of warlords
coming one after another from 1991 until today. The natural resources of
Somalia was misused by the warlords and even some allowed the superpower
countries in Europe and America to dump the Nuclear wastes in Somali
water, in exchange of dirty money.
Based on these facts, we call the international communities including
Arab League to avoid signing agreements with warlords/leaders in the
former Somalia. These warlords/leaders are stealing the natural
resources of the country for their personal use.
Somaliland, that formed democratic institutions, is different from
the result of former Somalia because the current government in Hargiesa
represents the all people starting from Sool to Awdal regions. There is
accountability in Somaliland and elected parliament should approve every
agreement with foreign party.
By Abdulaziz Al-Mutairi
Faafin: SomaliTalk.com | Aug 22, 2008