Puntland rejects oil deal by Somalia

Puntland rejects oil deal by Somalia
Puntland rejects oil deal by Somalia

Mr Issa Mohamoud Farah alias Dollawaa, the Director General of the Ministry of Mineral Resources and Petrol for Puntland has rejected an accord entered by the Federal Government of Somalia (FGS) with two fuel companies, namely Shell and ExxonMobil.Talking to the BBC Somali Service, Mr Farah reacted to details given by the Somali Director General for Petroleuma and Mineral Resources Farah Abdi Hassan.

While responding to enquiries Mr Hassan had said on Saturday that his administration entered into agreement in The Hague in the Netherlands with Shell and ExxonMobil over oil exploration.

Mr Farah stated on Sunday that the FGS could not unilaterally enter into accords with companies dealing with Somalia’s natural resources such as fuel.

He indicated that his objection derives from the fact that the accord entered between the FGS and the Fuel Companies illustrate that exploration and exploitation include territories controlled by the Puntland authority, a semiautonomous state in North-eastern Somalia.

Mr Farah underlined that his authority had already entered agreements with foreign companies on fuel exploration and exploitation, asserting that it will continue engaging the same companies.

DG Farah also stated that the provisional Constitution of Somalia states that the FGS alone could not unilaterally enter into agreement with companies without the consent of the constituent states.

Source: Daily Nation

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