(31-03-23) LASANOD — As the Laascaanood conflict continues to escalate, with no evident resolution in sight, the question on everyone’s lips is whether the exploration of oil in the region has exacerbated ongoing tensions. The region, embroiled in territorial disputes between Somaliland and Puntland, is also drawing significant attention from international oil companies due to its prospective oil reserves.
Genel Energy, a London-listed operator, and Somaliland have entered into an agreement for the SL10B13 well. A Taiwanese company, CPC, is funding 49% of the costs, whilst Genel is covering the remaining 51%. The companies anticipate extracting 200 million barrels of oil from the well. Nevertheless, the CEO of Genel Energy has cautioned that the targeted 2023 exploration of the SL10B13 license in Somaliland may be deferred until 2024 due to the ongoing strife in the Sool region.
“If Somaliland cannot regain control of the region, it risks missing out on substantial revenue from this oil exploration project. This could have a cascading effect on the country’s economic health,” warns Ismail Ali, a researcher in African geopolitics.
The SSC people, predominantly of the Dhulbahante clan, are seeking autonomy from both Puntland and Somaliland. Their opposition to the Somaliland-Genel Energy agreement stems from a yearning for self-determination and control over resources within their territory.
The SSC community has also alleged that the Somaliland government is utilising the drilling agreement as a means to consolidate its dominion over the region and undermine the SSC people’s autonomy. They highlight that the agreement was concluded without their consent and that Somaliland has deployed troops to the area to ensure security for the drilling operations.
The roots of the Laascaanood conflict can be traced back to the 1990s when Puntland and Somaliland proclaimed themselves autonomous regions within Somalia. The ensuing dispute over the Sool and Sanaag regions, claimed by both parties, has fuelled tensions for decades. However, recent discoveries of oil and gas reserves have heightened the stakes, as both sides vie for control over these valuable resources.
“Oil, unfortunately, can often serve as both a blessing and a curse, depending on how it is managed. In the case of the Laascaanood region, it seems to be more of a catalyst for conflict than a boon for development,” observes Dr Mohamed Jama, an expert in African Studies.
Several international oil companies, encompassing some of the industry’s most prominent firms, have signed exploration agreements with either the Somali government or the autonomous administrations of Somaliland and Puntland. This escalating interest in the region’s resources has stoked concerns that such agreements could be exacerbating the conflict. A United Nations report corroborates the view that the potential for hydrocarbon exploration could indeed be fuelling the ongoing dispute.
As the Laascaanood conflict persists, it becomes imperative for international stakeholders to meticulously consider the repercussions of their actions on the region’s fragile balance of power. Transparency in negotiations and agreements related to oil exploration is vital to safeguard the interests of the local residents.
Additionally, efforts should be made to foster dialogue and peaceful negotiations between the contending parties, aiming for a mutually beneficial resolution. “The allure of resource wealth should not overshadow the need for stability and the wellbeing of individuals caught in this ongoing strife,” cautions Omar Yusuf, an analyst in conflict resolution.
The potential for prosperity in this region should not be realised at the cost of stability and the welfare of the people ensnared in this conflict.
Hanad Mohamed
