Somalia announces revenue sharing agreement

The Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia has announced an agreement was reached between the country’s member states and is now included in the country’s petroleum law, Kallanish Energy learns.

The bill, dating back to 2008, was reviewed last month based on the Federal System introduced in 2012.

Under the Petroleum Ownership Management and Revenue Sharing Agreement signed by the government and the member states, the country’s mineral resources belong to the Somali people and shall be represented by local authorities.

The agreement provides guidance on how revenue coming from upstream activities will be shared among communities. Member states will choose independently how to invest their revenue share.