Somaliland’s virgin economy creates a new window for investors

Posted on: December 6th, 2012 by admin

June 26, 2013

By Zamzam Abdi Karim | Photo: Kate Stanworth

Investors are coming in droves to Hargeisa for a share of Somaliland’s thriving frontier market.

A functioning central government and remarkable stability has poised Somaliland as the next investment destination for investors across the world.

With a 740KM coastline that largely lies on the Gulf of Aden, the country offers a gateway to the Horn of Africa’s rich consumer market. Its strategic position on the world’s busiest shipping lane also offers access to thriving markets in the Gulf.

Already, the stage is set for the scramble of black gold in Somaliland. Leading oil exploration firm Genel Energy was in August 2012 awarded an exploration license for onshore blocks SL-10-B and SL-13 in Toghdeer, Somaliland.

According to the Anglo-Turkish exploration firm, Somaliland is a relatively unexplored region, with few exploration wells drilled.  They estimate the total size of the oil blocks in Somaliland to the equivalent of entire Kurdistan Region of Iraq.

Initial assessment by Genel energy recorded 1 million barrels of oil in the blocks of SL-10B and SL-13.  The firm also projected a similar resource potential for Odewayne block.

“A substantial 2D seismic campaign for all the blocks will take place in 2013, with the first exploration well targeted for the second half of 2014.” reads a statement on Genel Energy website.

With the above projections, analysts expect a multiple-sector multi-billion investment in Somaliland in the coming years benefiting the Somaliland economy and its people.

Involved in the energy charge to Somaliland is Australia based oil company Jacka Resources Ltd which has a partnership with Genel Energy to unwrap the resources in the unchartered but oil rich Somaliland. Jakka has begun work with exploration date set to end in May 2015 on a $50 million contract.

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