November 9, 2005 (Business Africa) – A production-sharing agreement covering four oil concessions in Somaliland has recently been finalized by South African company Ophir, according to a report published in Africa Energy Intelligence.

Ophir was established in 2004 by the former management of Fusion Oil & Gas. Ophir has acquired 75% of the onshore 35 and 36 licenses and 75% of the offshore M10 and M10A blocks, the remaining 25% of each being owned by a British company, Rova Energy.

The rights were acquired by Ophir when it purchased 75% of Rova. However, in 2004 a Canadian firm, Soma Petroleum, made similar claims about the same blocks, only for the government to deny it had any dealings with the company. The fact that Ophir holds interests in various oil and gas projects around Africa does indicate that some progress may be made in exploring Somaliland's oil potential, but the problem of international recognition and the question of just who owns the resources in Somaliland—Hargeisa or Mogadishu—will not be solved anytime soon.

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