Further details have emerged of CNOOC’s oil contract with the Somali government. It grants the Chinese state giant the right to almost half of any profits from production but also promises large bonuses to the Somalis if significant discoveries are made.

A production-sharing contract signed last year gives CNOOC and its partner, China International Oil and Gas, the right to 49 per cent of profits from any oil they discover.

The remaining profit will go to Somalia’s transitional federal government (TFG), which will also receive $50m production bonuses for any wells that yield more than 200,000 barrels a day for 75 consecutive days.

Somalia remains a speculative region for oil exploration. CNOOC is braving insecurity and political uncertainty as an insurgency against the interim government continues in Mogadishu, the capital. But due to China’s thirst for oil, the group has developed a reputation for launching high-risk ventures.


  • I would like to tell the international community that somalia is under ethiopian occupation with the backing of the united states, however we the somali people are intent on resisting this illegal invasion on our country, note that the useless united nations has failed to punish ethiopia for illegally invading somlia and breaking the most sacred law of the UN, the will of a nation.

    We had eight months of peace under the Islamic government of somalia, which has been driven and uprooted by ethiopian dictator meles zenewi, and replaced by a coalition of warlords that have named themselves the TFG of somalia.

    The TFG has no support from the somali people whatsoever, and the TFG has proven to the somali people that they are nothing but puppets of ethiopia that serve the interest of the dictator of ethiopia rather than the somalia people.

    The international community should force ethiopia to respect the UN nations first charter and completely withdraw its military from somalia without any conditions.
    We hope that the international community can understand that no peace in somalia of the Horn of africa shall take place until ethiopia goes back to her boundaries and we the somali people will not tolerate the TFG warlord rule.
    If that means that several million of us have to die in that process that by God we are ready to sacrifice our freedom and right for self determination.

    George Bush and the neoconservative government have brought nothing but death and suffering to many peoples around the world, in fact they have become the terrorist they sought to fight, they have backed dictators such as the ethiopian dictator meles and have supported the repression of real democracy movements in ethiopia and somalia.

    I hope that the international community can wake up and realise the mistakes the Bush regime is committing not just in iraq and the middle east but also in africa.

    The invasion of somalia by dictator meles zenewi with US backing and financial and political support was extremely wrong and illegal and has resulted of the toppling of the somali government known as the Union of courts and has opened the way of the return of the hated warlords back to power in somalia.

    Am sure that the international community knows very well about the genocide that has taken place in sudan, but does the international comminty know the genocide that has taken place in somalia, that has been committed by the ethiopian military and warlords on somai

  • I second Yusuf…

    CNOOC shareholders must understand that the long term interest of the company should not achieved by reaping profits’ on the backs of oppressed people.
    Somalia has no legitimate government that the people have sanctioned and any contract that is entered by TFG is null void without the approval of an elected parliament and government.

    The Somali people are very grateful what China has done for the country in the lean years of the Cold War. To date, the only viable road that connects the country from South to North was built by the Chinese Government when other nations were bringing death and destruction to the Somali people.

    I urge all CNOOC shareholders to reject this high-risk venture in Somalia and elsewhere in Africa.

  • Yusef, You hit the nail on the coffin there…

    People must understand the elitism of US and other Western alliances don’t give a damn about the situations of other peoples desperations, as long as their capitalistic ventures are making record profits.

    The Western minorities lust for money and power will always decieve global politics for their own individualistic gains but hey isen’t that the foundation of a “modern” competition oriontated western society.
    This is one of the main reasons why this world is in such a mess.

    Yusef, I wish you and all the somalian people luck in ousting this US backed TFG puppit government because to the empire, oil trumps blood just as much as profit trumps people.

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