Presentation on theme: "1 Somaliland’s Natural Resources & Energy Sector Hussein Abdi Dualeh Minister of Energy & Minerals."— Presentation transcript:
1 Somaliland’s Natural Resources & Energy Sector Hussein Abdi Dualeh Minister of Energy & Minerals
Somaliland Overview Somaliland had a stable democratic government for 23 years. – Pro-development government. – Adopted “open door” policy to petroleum and mining investment. Will consider bid rounds in awarding new oil blocks going forward. – Attracting international E&P companies (e.g. Genel, DNO, RakGas, Ansan). – New modern legal framework for mining & petroleum Offering competitive fiscal terms – Small discoveries are likely to be commercially viable. – Berbera port close to major basins and mineralized zones with direct access to major global shipping lanes.
Geological Setting Somaliland has favorable geological setting for hydrocarbon and mineral resources. Potential for world-class discoveries.
Regional Geology – Comparison with Yemen Geology of Yemen margin is similar to Somaliland prior to rifting in the Gulf of Aden. – The similarities in fault trends on both sides is striking. – Berbera basin is the continuation of the Bahalf graben before the extension phase. – Yemeni basins contain 9 billion of reserves. – Adjacent Somaliland basins have identical geology and potential. – Yemen provides fast- track analogues. – Major discoveries in East Africa.
Hydrocarbon Exploration Plays Key elements for generation and entrapment of hydrocarbon are present. Major sedimentary basins, source rocks, reservoir rocks, and structural & stratigraphic traps. Large oil and gas accumulations is highly likely in Somaliland basins. Southerly dipping Jurassic sequence of Gawan limestone overlying Daghani shale
Exploration Plays A working petroleum system is known to be present within Mesozoic to Tertiary sedimentary section. Presence of oil seeps at Dagah Shabel, Biyo Dader and many other locations. Oil shows on most drilled wells (e.g., Dagah Shabel, Dab Qua, Bandar Harshau, Nogal). Basal clastics of Adigrat sandstone Gahodleh shale
Potential Plays: Offshore Plays found in pre-rift (Jurassic & Cretaceous) and Oligocene-Miocene sequences include major roll-over anticline structures. Somaliland Offshore play Offshore play
Potential Plays: Onshore – Nogal Basin Nogal-1 well confirmed working petroleum system in Nogal basin Tertiary movement did not breach Mesozoic structures, and hence, still contain a considerable hydrocarbon potential. D&AProposed Somaliland Nogal Basin
What is really special about Minerals in Somaliland? Geology of Somaliland records a very long history – Contains crystalline rocks of Precambrian age. – Contains Greenstone belt that can potentially host significant gold deposits Late tectonic uplift and erosion – Exposes deeply buried mineral deposits – Causes dispersions of metals in streams and rivers – Creates diversity of mineral deposits at different levels of Earths crust
Mineral Potential Geological environment and indications of mineralization reveal minerals of economic significance are widespread Highly potential for the deposits of iron ore, manganese, platinum and gold-bearing veins. A number of known deposits of minerals used in industry such as lead, zinc, tantalite-columbite, tin, and quarts crsytals. Somaliland is highly prospective and under explored.
Bedrock Geology and Mineral Potential Bedrock geology of Somaliland emphasizing units important for metallic mineral deposits
Metallic Minerals are present The most attractive metallic mineral potential of Somaliland are: – Iron ore, manganese, platinum, lead, zinc and gold-bearing veins. – Tin, tungsten and molybdenum (Mo) – Tantalite-columbite
Non-Metallic Minerals Very large resources of marble, limestone and dolomite – A cement plant with an annual capacity of 300,000 tonnes has operated since 1987 in Berbera. Gypsum – huge deposit close to Berbera. Heavy mineral sands containing ilmenite, rutile, zircon titanite, and titaniferous magnetite. Gemstones including amethyst, aquamarine, emerald, garnet, opal, ruby, and sapphire. Amethyst Gypsum, SE Berbera
Conclusions Considerable hydrocarbons could be accumulated in Somaliland basins. Somaliland is highly prospective to host abundant deposits of base metals, precious metals, heavy minerals, rare earths, coal, non-metallic and gemstones. Companies with proven track record and adequate financial and technical capacity in their respective field are desired to invest and not start-ups.