On Saturday, Somalia ratified its first ever petroleum law in the modern era. President Farmaajo signed the law in Mogadishu after an intense legislative process that received the approval of federal parliament’s upper and lower houses.
President Farmaajo said, “The law demonstrates the capacity the Somalis have for uniting and working together. It proves that we are ready to work together to create a nation that is not only peaceful, but also equitable and prosperous.”
By supporting the law, President Farmaajo stated that the country’s democratic institutions had shown their determination to work for all Somalis. He reiterated that the institutions proved they were ready to pursue the path of continued reconstruction of the country’s infrastructure.
As per the law, Somalis have complete and exclusive control over the country’s oil and gas. Moreover, the law has created a Revenue Sharing Agreement that will see the fair and equitable distribution of revenue to all federal states.
All stakeholders appended their signature to the entire process. Consequently, IOCs can now face the upcoming round of auctions confidently. The country plans to invest the revenue from its offshore discoveries in rebuilding its economy and the dilapidated infrastructure.
