On 4th 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 on 31st July 2020 (press release) and approval of the Petroleum Law by the Upper and Lower Houses of the Federal Parliament on 8th February 2020. The License Round is currently set to close on 30th June 2021 following an extension (press release).
The launch of this License Round is 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.