|Response to Media Speculation
22 April 2022 Mogadishu, Somalia: The Somalia Petroleum Authority (“SPA”) notes the article published by Voice of America on 19 April and issues the following response.
The analysis published in the article was entirely inaccurate and based on an early draft of the Production Sharing Agreement (PSA), which is no longer relevant.
The facts, which provide an equitable framework for both parties, are as follows:
In addition, the Resource Sharing Agreement and subsequent Petroleum Law require that PSAs must be approved by Government ministries and the Inter-Ministerial Concessions Committee (“IMCC”) as being fair and equitable. The IMCC is an intergovernmental body charged with scrutinising such agreements with representatives from the Ministry of Finance and other stakeholders including the Ministry of Justice and Judiciary Affairs, Ministry of Commerce and Industries, Ministry of Planning and Ministry of Foreign Affairs.
The IMCC recommended certain modifications to the Coastline PSAs in October 2021. These modifications were negotiated among the Ministry of Petroleum and Mineral Resources, SPA and Coastline in January of 2022.
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