Somalia has drafted regulations to manage the country’s petroleum and mineral resources sectors following an agreement between Somali Federal Government and its member states agreed on the management of the petroleum and mining sectors in Somalia.
Following three years of deliberations, the leaders both sides jointly agreed to clarify the management and administration of petroleum and mineral resources in Somalia.
The objective of the agreement is to gain a common vision between the government and the states on the management of the petroleum and mining sectors in Somalia
The Ministry will have to provide a framework through with both the government and the states can participate in the exploration and production of resources; to obtain revenue from the exploration and production of these resources.
Abdirashid Mohamed Ahmed, the Minister of Petroleum and Mineral Resources said the agreement authorizes the ministry to issue permits and manage the petroleum and mining activities in Somalia.
“The finalization of this agreement marks a new chapter in the progress and development of the Federal Republic of Somalia,” Ahmed said, pledging to work on the accelerating the endorsement of the draft bill.
“The Ministry will work in close collaboration with the federal member states in swiftly implementing all legislation and policies, monitoring and following up on all licenses issued prior to this agreement,” he noted.
Mr. Ahmed said the agreement will enable Somalia to avoid conflicts over resources and embark on a route to sustainable development.
“It is indeed a great day for Somalia to agree that the Somali people own their petroleum and mineral resources and the federal government of Somalia and federal member states are the representative of the people and are responsible for the fair distribution of petroleum and mineral resources,” the minister indicated.
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