Western Sahara
Sahara govt announces oil deal rival to Morocco

afrol News, 27 May - The exiled government of Western Sahara today announced the signature of a Technical Cooperation Agreement with British-Australian exploration company, Fusion Oil, to evaluate offshore petroleum potential. This agreement is rival to the Moroccan government's exploration licenses given over its offshore territory to US and French oil companies, which were not accepted by the UN.

Fusion Oil is to undertake an exclusive study and report on likely oil & gas prospectivity offshore Western Sahara. It is anticipated that the study will take up to sixteen months to complete. Following this, Fusion will have the right to nominate up to three areas for future exploration licensing on regionally competitive terms "once Western Sahara is a member of the United Nations," according to a statement by the two parties.

The agreement covers the entire offshore territory of Western Sahara, an area of approximately 210,000 square kilometres, extending from Mauritania in the south to Morocco and the Canary Islands (Spain) in the north. 

The reconnaissance licences recently granted by Morocco to Kerr McGee and Total-Fina-Elf covering the same area are not recognised as legal by the exile Government of Western Sahara. Also the UN had found that Morocco had no right to grant these licences offshore Western Sahara as it was "not the administrative power of the territory," according to a UN legal opinion.

Mr Mhamed Khadad, Councillor to the President of Sahrawi Republic, commented that his government was "pleased to have commenced this Technical Cooperation Agreement with Fusion and looks forward to using the results of the evaluation to implement appropriate policies that will encourage open competitive international investment and ensure responsible development of the offshore resources of the Sahrawi Arab Democratic Republic for the benefit of the Sahrawi people."

The government had concluded this agreement with Fusion "to allow the Sahrawi people to independently determine the potential of their territorial waters," a government statement says. "Through collaboration with Fusion on this project, Sahrawi officials will become further accustomed to the principles and standards of the international oil and gas industry in readiness to assume custodianship and management of these resources following confirmation of sovereignty."

The government had chosen Fusion as its technical partner in this assessment "in view of the company's proven expertise and commitment to the region." Fusion pioneered recent deepwater exploration efforts offshore Northwest Africa, which culminated in 2001 in the first deepwater oil discovery in the region (Chinguetti-1, offshore Mauritania). 

Alan Stein, Managing Director of Fusion, commented that his company was "deeply honoured to have been selected by the Government of the Sahrawi Arab Democratic Republic to conduct such a significant project." He further said equal findings as offshore Mauritania could "be anticipated" in Sahrawi waters. Currently, Fusion has exploration licenses in Mauritania, The Gambia, Senegal, Guinea Bissau, Ghana and Gabon. 

Sources: Based on Sahrawi govt, Fusion Oil and afrol archives.

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