He just makes shit up as he goes
Major Update on Oil deal
- Thread starter Barkhadle1520
- Start date
Barkhadle1520
VIP
Chill its a proposed plan, nothing signed yet but most likely this is what will happen
Barkhadle1520
VIP
Are you dhulbahante ?
Barkhadle1520
VIP
Its ok bro I would be ashamed too
You misunderstand, this is the model Somalia is supposed to follow under the petroleum law that was passed. However, the oil agreement with Turkey does not follow that model and will not adhere to it. Furthermore, the share allocated to SONOC or the Somali government is entirely at Turkey’s discretion, that’s one of the key concessions in our agreement. Have you actually read the oil agreement?
Our deal is worse. You know you could read the oil agreement, right?
Somalia has cleared its international debt, making it a promising location for significant development if oil is struck. Turkey has also made to sure to search Somalia’s land resources aswell. Things are looking up.
people say 10-90, which is not the entire deal, that is just cost recovery for turkey, after the initial 5 years, it will be 70-30.
I am more concerned about Kuwait looting SWS
people say 10-90, which is not the entire deal, that is just cost recovery for turkey, after the initial 5 years, it will be 70-30.
I am more concerned about Kuwait looting SWS
Barkhadle1520
VIP
Aren't you forgetting something
Aad iyo aad I think this deal is very promising, I searched a lot and I couldn't find a deal as good as this in the whole continent
Plus if something like the ukraine war or saudi houthi war happens again they could make recovery cost in a year or two, everyday I pray Houthis bomb saudi oil again, if houthis manage to win the war which they are close to winning, saudi is done, their desalination plants and oil infrastructure could be bombed into oblivion and theres nothing they could do to stop it
Last time in september 2019 houthis sent suicide drones and rockets on the world’s largest crude oil processing plant in saudi arabia and 5% of global supply vanished for a bit, oil prices spiked 20% overnight for a few weeks but larger attacks could make it ten times worse
What are you talking about ?
Last edited:
Barkhadle1520
VIP
This is why arab nation even while in a civil war are still richer than most of ssa, they're out here making 14 bln in profits in just nine months, before oil Lybia was surviving on aid like pre 1991 Somalia
Mind you Lybia's population is barely 8 million
hayran
Ride The Lightning
it's an old FKD signal
Southwest State of Somalia signs $500M deal with Kuwaiti firm to develop Barawa port
Mogadishu (HOL) — The South West State administration has signed a $500 million agreement with Kuwaiti conglomerate Arabic Holding to expand and operate the Barawa Port, a move expected to boost regional trade and strengthen Somalia's economy.
this deal involves resource extraction with no oversight from the FGS. SWS happens to be resource rich, letting it sink to a small Arab nation in a 25year deal of entrapment is a waste. SWS is an Ethiopian stronghold aswell, whatever LG says there goes, until Somalia rearms itself.
How could I. It’s just that their inevitable downfall will come with Somalia’s ascension.
Guyana which is now a very rich country. Has a production sharing agreement not too different from ours, theirs is 12.5% on a 25% split with exonn and a 75% cost recovery. Somalia has more to show for than Guyana with more blocks remaining to search.
Barkhadle1520
VIP
damn
Barkhadle1520
VIP
this is very good for SWS, thats a huge investment for only 25 year concession and full development of the city, this is on par with berbera if not better, but 25 years seems generous, did you know Hobyo port gave a 70-80 years concession to a turkish company ?Southwest State of Somalia signs $500M deal with Kuwaiti firm to develop Barawa port
Mogadishu (HOL) — The South West State administration has signed a $500 million agreement with Kuwaiti conglomerate Arabic Holding to expand and operate the Barawa Port, a move expected to boost regional trade and strengthen Somalia's economy.hiiraan.com
this deal involves resource extraction with no oversight from the FGS. SWS happens to be resource rich, letting it sink to a small Arab nation in a 25year deal of entrapment is a waste. SWS is an Ethiopian stronghold aswell, whatever LG says there goes, until Somalia rearms itself.
secondly on the resource sharing agreement I doubt the authenticity of that claim, im sure something like that wouldnt pass without fgs's approval
Sxb are you aware that oil revenues wont hit until several years down the line ? FGS isnt going to be swiming in it until at least 2030s, they are still not independent in their budget and army, with aussom pulling out in late 2026 what stops 2027 from being one of the most catastrophic years ? Western countries are also slowly pulling back on the financial support
Really dont understand how you guys find reason in your hope that somehow FGS will make it through these decisive times when they show no sign of being ready
The problem is not how much resources there are, by this point everyone knows its promising, the problem is that fgs is short on time
hayran
Ride The Lightning
nvm i thought bro was talking about murursade lol, didn't know he was actually talking about kuwait
Barkhadle1520
VIP
Brainrotted by fkd
It’s not true that it’s going to be a 70 30 split with 70 in favor of Somalia. You’re just saying that. Now, matter of fact, Turkey unilaterally gets to choose its own participating interest, and thus our participating interest. Furthermore, the agreement isn’t even 90 10. It’s 90 percent toward cost recovery. If there is any profit, Somalia receives a royalty of up to 5%, not a guaranteed 5%. That final 5% will be split between Somalia and Turkey, with Turkey determining how the split is made. . The deal is horrendous, and this isn’t even the worst of it, nowhere near.
Can you give me more information about Kuwait and South West State?
I'm just researching this now. Why on earth would Somalia agree to 90 percent until cost recovery? Tanzania apparently sets a limit at 50% and the World Bank/IMF says it's usually capped at 60-70%. Is Somalia just so buck broken and balkanized that they'd agree to 5% royalties only lol. Apparently, it could take up to 2-6 years until recovery I wonder what will be the split 70/30 sounds wild, knowing most countries usually take 40-50
Yeah, it’s actually super strange almost unheard of, and then when you can buy this with the rest of the terms, it’s egregious.
Not only do they get 90% cost recovery, but they also have total operational control. That means it’s going to be their subcontractors, their companies, their logistics, everything. What they’ll do is something called goldplating, which means if you own all the businesses throughout the operation, your companies can charge whatever they want, and that cost gets added for Somalia to pay. There’s an incentive to inflate costs.
Somalia gave up any audit powers because Turkey has the right to keep all the money outside the country. It will never go through the Somali Central Bank.
Now in regards to the split, Turkey has the right to unilaterally decide their own participating interest, and effectively ours. That means Turkey can choose 80%, 90%, even 95%, and the remainder goes to Somalia. Do people understand how significant that is? We completely gave up leverage.
Usually, you get an unfavorable deal for the first oil block, and once oil is proven, you gain leverage to renegotiate future blocks. But in this case, Turkey pre-negotiated the fiscal terms that will apply to every single oil block they explore. It’s extremely strange and unheard of.
Trending
-
Somalis in Tech: Meet Yasmin Abdi. Founder of NoHack, a cybersecurity consulting company.- Started by caano_shaah
- Replies: 25
-
-
