Somalia Federal Government to Implement an Illegal Production-sharing Agreement

[Deeq A.]

The Lower House today endorsed the new government formed by Hamza Barre.

Mogadishu (PP News Desk) — The Federal Government of Somalia had published its programme shortly after the Lower House endorsed the new government formed by Hamza Barre, the Prime Minister.

The implementation of the illegal production-sharing agreement signed in February 2022 by the former Somalia Minister for Petroleum and Mining Abdirashid Mohamed with Coastline Exploration Ltd features in the government programme. The agreement was signed in violation of a presidential moratorium on signing agreements during the transition.

The programme of the Federal Government of Somalia shows commitment to implementing the illegal production-sharing agreement signed with Coastline Exploration Ltd.

The former Petroleum Minister had been temporarily investigated by the Attorney General before the case has gone cold. The Financial Governance Committee report published in 2022 drew attention to underhand practices despite having no “powers under the Procurement Act to waive its provisions” about awarding contracts. President Hassan Sheikh Mohamud’s government plans to consider the production-sharing agreement as binding. The new administration will need to pay special attention to oil and gas contracting” the FGC report urged the new administration.

President Hassan Sheikh Mohamud considers the illegal production-sharing agreement as binding on Somalia.

Puntland State of Somalia has expressed reservations about the petroleum law, which divides Somali regions into oil-producing regions and non-oil producing regions in an apparent strategy to grant certain regions the privilege to endorse illegal production-sharing agreements that could spell the break-up of Somalia into statelets.

© Puntland Post, 2022

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