Somalia re-signs oil deal with Coastline Exploration

By admin on October 21, 2022 • ( Leave a comment )

Mogadishu October 21,2022 (SD) – Somalia today finalized a controversial oil production sharing agreement with Coastline Exploration Company.

The Federal Government said that it cooperated with the country’s Attorney General and international lawyers who specialize in these types of agreements in reformation the previous administration’s Oil agreement with Coastline Exploration.

“”We reviewed the agreements signed in February 2022, to correct the process and the provisions of the agreements. The amendments made to the agreements reached up to five points, attached to the agreements (deed of amendment of the PSAs).” said the Minister of Petroleum and Minerals of the Government of Somalia, Abdirisak Omar Mohamed.

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The Coastline Exploration Company announced that it has deposited 7 million dollars in the Central Bank of Somalia.

With support from President @HassanSMohamud, we have today paid a $7m signature bonus directly to the Central Bank of #Somalia. Assuming our wells are successful, we expect to pay many millions more dollars to #Somalia by way of royalty payments, profit splits and income tax.
— Coastline Exploration (@coastline_explo) October 21, 2022

The President of Somalia, Hassan Sheikh Mohamud, welcomed the amendments and completion of mutual agreements on oil exploration in the country, and pointed out the importance of the agreement for economic growth and how it is an opportunity for the Somali people to fight poverty and famine.

“Somali people are struggling with difficult economic conditions, and are raising the alarm on needing help from the International community on a yearly basis. In order to overcome this, we must extract our resources, develop the economy and increase governmental budgets and those of the Somali people ,” said President Hassan Sheikh Mohamud.

The agreement previously signed by the former Minister of Petroleum Abdirashid Mohamed Ahmed was rejected by former President Farmajo and Prime Minister Roble, but Coastline Exploration Company insisted that it is legal and cannot be withdrawn.

The ceremony of correcting and finalizing the agreement was attended by the Minister of Foreign Affairs and International Cooperation, the Minister of Petroleum and Minerals, the Minister of State for the Ministry of Petroleum and Minerals, the Special Envoy of the President for International Trade Affairs, officials from the Petroleum Agency and Coastline Exploration Company management.