Puntland warns oil companies against deals with Somalia

GOOBJOOG NEWS|GAROWE: Puntland has warned international oil companies against entering into any contracts with the Federal Government during the ongoing Africa Oil Week in Dubai.

The Abdullahi Deni administration said in a statement the current administration did not have the legal capacity to enter into any contracts since it on a transition. It added that the Petroleum Act which came into effect on February 2020 was in contravention of the Provisional Constitution and Puntland did not recognise it.

The Africa Oil Week which Somalia is participating will conclude tomorrow. It brings together governments and oil companies to explore opportunities in the oil sector.

The Inter-Ministerial Committee on Contracts (IMCC) last week approved the revised Production Sharing Agreement which now paves the way for licensing of oil companies.

The licensing rounds were set to close on June 30, 2021 but have since been extended.