Copyright Petroleum Economist Ltd. (UK) 1991.
Petroleum Economist. Vol 58, Issue n10, Oct, 1991, p19(2).
Oil Hopes Hinge on North Somalia
A UN-funded study points to oil potential in Ethiopia and Somalia. Maria Kielmas talked to emerging rulers in the region about their oil policies.
Wars in countries comprising the Horn of Africa put on hold the first real spark of international industry interest in the region's oil prospects. As a variety of political factions wrestle for control in Ethiopia and Somalia, only one group, the Somali National Movement (SNM), which controls the self-proclaimed Republic of Somaliland in northern Somalia, has maintained a positive policy towards foreign oil investment.
Aside from the political conflict, oil exploration in the African Horn has generally been neglected because of a widespread perception throughout the industry that the region is gas-prone and both inaccessible and expensive to explore. The countries around the Gulf of Aden and Red Sea are regarded as too poor to afford the necessary infrastructure for gas development.