The Somali government is expected to sign an agreement in the coming hours with Coastline, formerly known as Som-Oil and Liberty, at the Presidential Palace in Mogadishu which has been in talks in recent days.
The pact will be witnessed by the President of South West State Abdi Aziz Hassan Mohamed Laftagaren who arrived in Mogadishu yesterday and Galmudug President Ahmed Abdi Kariye (Qoor Qoor) who arrived in Mogadishu today.
The oil blocks are located in Hobyo of Mudug region and Barawe in Lower Shabelle region.
The move comes barely a day after the council of Presidential Candidates issued a statement warning the Somali government against signing a secret agreement with the companies, saying it could risk Somalia’s debt forgiveness process.
“On 5 June 2018, the federal government of Somalia and Federal members states signed an agreement sharing on natural resources in Baidoa, which states that any agreement on the drilling exploration, or search for oil in the country must be transparent, thoroughly debated, evaluated and agreed upon, and finally approved by the house of the people of the federal government of Somalia, before it is signed,” the council of presidential candidates said in a statement.
”The reported secret agreement the ministry is going to sign is against the laws and regulations on natural resources that have been approved by the federal government of Somalia, agreements between the federal government and federal members states, and the general understanding of the responsibility of protecting the natural resources of the country.’’ The statement added.
Abdirahman Abdi Shakur Warsame, presidential candidate and a fierce critic of president Farmaajo said that the Somali government has closed the road from the presidential palace to the airport for foreign companies to sign oil packages, without following the agreed rules and regulations.