Following approval by Somalia’s upper and lower houses of the Federal Parliament, the Petroleum Law has been ratified by the President Mohamed Abdullahi Farmajo
The Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia stated that the presidential ratification is a landmark moment in the development of Somalia’s natural resources, which will be transformational for the country’s development.
The law includes provisions that the country’s oil and gas will belong exclusively to the Somali people. It furthers embeds a revenue-sharing agreement to ensure that the revenues will be distributed among the Somali people through the Federal States, ultimately benefitting the future generations.
Future revenues will be invested in the continuing rebuilding of the country’s economic and social infrastructure, particularly in education, security and healthcare, to ensure the long-term prosperity of the Somali people.
Commenting on the ratification of the Petroleum Law, President Mohamed Abdullahi Farmajo said, “The Petroleum Law demonstrates the capacity of the Somalian people to unite in a historic effort to work together to build an equitable, prosperous and peaceful nation. In supporting this law, our democratic institutions have renewed their commitment to work for all Somalis and advance the cause of continued reconstruction.”
“The opportunities for the international exploration and development majors are enormous, with Somalia having the potential to become one of the most significant hydrocarbon players in offshore East Africa. The legislative process has completed to open up this strategic opportunity. We look forward to moving to agree with production-sharing agreements with our international partners,” noted Abdirashid Mohamed Ahmed, minister of petroleum and mineral resources.
