In August 2020 the Somali Petroleum Authority (SPA) oversaw the opening of the country’s first ever offshore licensing round. This followed the establishment of the Authority (press release) and approval of the Petroleum Law by the Upper and Lower Houses of the Federal Parliament. The License Round is currently set to close on 30th June 2021 following an extension (official statement).
The launch of the License Round marked a landmark moment in the development of Somalia’s natural resources and will be transformational for the country’s development.
The law includes provisions that the country’s oil and gas will belong exclusively to the Somali people. It also embeds a groundbreaking revenue-sharing agreement that ensures revenues will be distributed among the Somali people through the Federal States, and for the benefit of future generations.