Africa Oil Demands President's Signature for Puntland Project

Garowe, Somalia, 29 December 2007 - A Canadian exploration firm with rights in Somalia's northern Puntland enclave has demanded the signature of interim President Abdullahi Yusuf before the exploration project can move forward, inside sources told Garowe Online.

Africa Oil Corp., formerly Canmex Minerals, partnered with Australia-based Range Resources, Ltd, in January to explore for oil and minerals in the relatively stable Puntland region.

But the Africa Oil executives are now demanding the signature of President Yusuf as the prerequisite for a US$20-million payment, to be divided between Range Resources and Yusuf's transitional government.

The executives threatened to withdraw from their agreement with Range, and in turn with the Puntland government, unless President Yusuf cements the deal by signing an official document, the confidential sources added.

Puntland Finance Minister Mohamed "Gaagaab" Ali and Range Resources official Liban Muse Bogor were both reported to be in Nairobi, Kenya, earlier this week waiting for President Yusuf's return from London.

Although Minister Gaagaab has since returned to Puntland for unspecified reasons, sources indicated Mr. Bogor is still in Nairobi.

Since 2005, implementation of the Puntland-Range deal has been hampered by steady resistance from a variety of sources, including former Prime Minister Ali Mohamed Gedi and from local clans opposed to the exploitation of their land and resources without clan approval.

Gedi has said that his feud with President Yusuf began when exploration agreements were signed without his knowledge, sparking a constitutional tug of war with the president.

Somalia 's parliament has yet to ratify a petroleum law that would govern the management of the country's resources.

Source: Garowe Online