On 4th August 2020 the Somali Petroleum Authority (SPA) will oversee the opening of the country’s first ever offshore licensing round. This follows the establishment of the Authority on 31st July 2020 (read press release) and approval of the Petroleum Law by the Upper and Lower Houses of the Federal Parliament on 8th February 2020. This law has also been ratified by His Excellency President Mohamed Abdullahi Farmajo.
The Presidential Ratification is a landmark moment in the development of Somalia’s natural resources, which 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.