Somalilandsun: Not really a great time to try to attract new investment for Oil & Gas in Somalia.argues Tom Kirkman who is moderating the discussion Bad Timing: Somalia President Signs New Oil Bill into Law to Open Up a New Frontier Market Hosted by oil price .com communityoil price .com community
Somali President Mohamed Abdullahi Farmajo has signed landmark petroleum legislationlegislation into law to help open up a new frontier market, the oil ministry said on Saturday.
The upper house of Somalia’s parliament in January approved the petroleum law aimed at providing a regulatory framework that will help attract investment in exploration by major oil companies.
“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,” Farmajo said in a statement.
The new law establishes revenue-sharing between the central government and states as well as a legal framework for an industry the country hopes will bring jobs and investment after decades of conflict.
Plagued by civil strife, Somalia currently does not produce any oil but production could transform the economy as seismic data has shown there could be significant oil reserves offshore. The government hopes the petroleum law will entice big oil companies like ExxonMobil and Shell to return to the country where they held legacy blocks from the 1990s. ..