Somalia denies oil licensing has started, says media reports misleading

 Somali government has denied media reports that it had launched oil licensing rounds noting the reports are misleading and that no such exercise has commenced.

The Ministry of Petroleum said Wednesday in a statement the government was yet to roll out the rounds and production sharing agreements adding ‘certain measures’ were yet to be put in place.

“The Ministry confirms the Licensing Round has not been launched as reported but affirms it will be in the New Year, following the passing of the Petroleum Law, which is anticipated in the near future,” the statement read.

The Ministry, the statement added, “Is committed to establishing an attractive fiscal and regulatory environment for the development of its hydrocarbon resources and its Production Sharing Agreements will reflect this when announced with the forthcoming Licensing Round.”

The website, Research and Markets in its report, Somalia Upstream Fiscal and Regulatory Guide said Somalia was already offering production sharing agreements for upstream petroleum operations.

Somalia had announced in early 2019 it would be concluding licensing rounds in January 2020 but that deadline is yet to be realised as the Upper House has not passed the Petroleum Law which was endorsed by Lower House May 2019.