- Put it this way: Puntland and Somaliland have what's called 'disputed areas.' It's really created a quagmire," said Ali Abdullahi, the chief executive officer of Amsas Consulting, a Somali firm that advises private oil firms in the region. Somaliland, which declared its independence from Somalia in 1991 but is still not recognised internationally, has been relatively stable compared with other parts of the country, which has lacked effective central government for two decades.
Although Puntland is also stable, it is notorious for piracy and has frosty relations with Somaliland. Both regions claim they control a disputed area known as Sool, Cayn and Sanaag (SSC). Within that zone lie nearly a dozen oil blocks, mostly unlicensed, demarcated by Puntland and Somaliland authorities, according to a map from data firm IHS. Companies are unsure whether their contracts with the local authorities to drill wells will remain valid.
Although Puntland is also stable, it is notorious for piracy and has frosty relations with Somaliland. Both regions claim they control a disputed area known as Sool, Cayn and Sanaag (SSC). Within that zone lie nearly a dozen oil blocks, mostly unlicensed, demarcated by Puntland and Somaliland authorities, according to a map from data firm IHS. Companies are unsure whether their contracts with the local authorities to drill wells will remain valid.
The dispute between Somaliland and Puntland mirrors another between Kenya and Somalia over their maritime border, which may also deter oil exploring firms.
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