Somalia hopes gas and oil exploration in the country is very encouraging
31 May 2015 (Puntlandes)- Somalia government has announced on Sunday that the hope of oil and gas exploration in the country is very encouraging as it would not approve anything less than a fair deal for Somalia.
A press release signed with the country’s petroleum minister Mohamed Mukhtar has highlighted that prospects for petroleum exploration in Somalia are very exhilarating, following the relative calm which culminated in the absence of Al-Shabab which a few years ago controlled large swathes of land in the south and central Somalia including large portion of the country’s capital Mogadishu.
The press release also indicated as the country continues to recover at a rapid pace the investors were realizing its potentiality therefore Somalia government welcomes the development.
“The natural resource sector of Somalia will contribute strongly to building domestic revenue options for the FGS. The oil and gas sector has received significant interest, but we are not about to rush into any deals that may compromise the Federal Government’s ability to use any income generated to its own advantage,” Minister Mohamed Mukhtar Ibrahim commented.
Mr Mohamed Mukhtar added that his Ministry was working closely with the African Legal Support Facility, a unit of the African Development Bank, to develop fiscal and legal processes to support petroleum exploration and production.
“Recent reports that would suggest we are leaping into deals with our eyes shut are unfounded,” the Minister said.
The press release also underscored that, regional outreach initiative to develop a shared vision for the development and management of the Somali petroleum sector was in progress adding that the regional engagement will facilitate the development of ‘a revenue sharing mechanism’ between the Federal Government and the Regional Member States, which is also essential for the development of Production Sharing Agreement( PSA) model.
The press release stressed that Somalia government has not signed a single Production Sharing Agreement (PSA) with any petroleum company. However, prospective companies can send their own proposals to the Federal Government.
“It is important for everyone, and particular for the Somali people, to recognize that private entities can propose anything they want to us. We welcome their initiative. But, let me clear, 100% of our resources are in our hands.
Future decisions will be made in a manner that is transparent, accountable and ensure a fair deal to the Somali people now and in the future,” the Minister concluded.
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