The Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia has drafted regulations to manage the country’s petroleum and mineral resources sectors, especially in regard to ownership and revenue sharing.
The agreement was made by the federal government and the federal member states of the National Security Council and facilitated and assisted by the World Bank and the Council for Inter-State Cooperation.
The agreement, established in the interim capital of Baidoa on June 5, wraps up a three-year process led by the ministry to create a framework for the development of the oil industry, and it authorizes the ministry to issue permits and manage the petroleum and mining activities in Somalia.
The Council for Inter-state Cooperation, a technical committee from the Federal Member States and the Federal Government led an intensive and inclusive consultation process with all industry stakeholders.
The President of Somalia, H.E. Mohamed Abdullahi Mohamed, as well as Prime Minister H.E. Hassan Ali Khayre and the Heads of the Federal Member States and the Mayor of Mogadishu also secured high-level political agreement on the principles that will guide the management of the sectors.
“The finalization of this agreement marks a new chapter in the progress and development of the Federal Republic of Somalia,” said H.E. Abdirashid Mohamed Ahmed, the Minister of Petroleum and Mineral Resources.
“The Ministry will work in close collaboration with the federal member states in swiftly implementing all legislations and policies, monitoring and following up on all licenses issued prior to this agreement.”
Source: Africa Business