Somali President, H.E. Mohamed Abdullahi Farmajo, has ratified the country’s Petroleum Law with hopes of attracting international exploration and development majors to Somalia’s energy sector, the Ministry of Petroleum and Mineral Resources said on Saturday.
The law embeds a groundbreaking revenue-sharing agreement that ensures revenues will be distributed among the Somali people through the Federal States, and for the benefit of future generations. Future revenues will be invested in the continuing rebuilding of the country’s economic and social infrastructure, in particular education, security and healthcare.
“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 President noted.
Also commenting on the ratification of the Petroleum Law, Minister of Petroleum & Mineral Resources, H.E. Abdirashid Mohamed Ahmed noted that Somalia has 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 now much look forward to moving to agreeing Production Sharing Agreements with our international partners,” he said.
Currently, Somalia does not produce any oil, however, seismic data has revealed potential for substantial offshore oil reserves that could transform the country’s economy.