2005 Puntland-Range Resources Agreement
In the 2000s, the Puntland government began official negotiations with foreign oil companies over exploration rights in the area. The provincial authorities in October 2005 granted Range Resources a majority stake in two sizable land-based mineral and hydrocarbon exploration licenses, in addition to offshore rights. The onshore Nugaal and Dharoor Valley blocks in question span over 14,424 km2 and 24,908 km2, respectively. Two years later, Range Resources obtained a 100% interest in the two blocks and concurrently farmed out 80% of that share to Canmex Minerals.
At the time of the 2005 agreement officially awarding the licenses to Range Resources, the Puntland government administered the entire Nugaal Valley. However, in 2007, troops from the separatist Somaliland region in northwestern Somalia were sent to the area and have since militarily occupied the valley's western section despite resistance from local residents. On account of the uncertain security situation in this part of the Nugaal block, Range Resources have as of 2011 given priority to drilling in the Dharoor Valley.
Read more about this topic: Oil Exploration In Puntland
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