Somalia: Puntland accuses Soma Oil & Gas of backing petroleum bill

GAROWE, Somalia, August 5, 2015 (Garowe Online)-Puntland government in northern Somalia has lashed out at British Oil  Company, Soma Oil & Gas for largely drafting the country’s first-ever petroleum bill amid allegations of corruption, Garowe Online reports.

In what seems to be stoking another battle over the management of hydrocarbon discoveries, Puntland Petroleum and Minerals Agency on Wednesday unveiled the draft bill will benefit Soma Oil & Gas and other foreign firms that want to illegally secure contracts.

Soma is currently facing probe for transferring payment totaling $490,000 to senior civil servants at Somalia Petroleum and Mineral Resources Ministry according to a report by a panel of UN experts.

Somalia is also currently assessing its oil and gas potential, gaining the attention of investors keen on stake in the country’s oil and gas industry.

“Puntland Petroleum and Minerals Agency acknowledges that foreign firms, notably Soma Oil & Gas are propping up new petroleum bill,” read the statement, adding that the British Oil Company is pursuing a policy to enter into fresh agreements and legalize binding deals with the federal government.

Puntland voiced support for the ongoing investigations into the offices of the British firm chaired by former Conservative Party leader Michael Howard.

Continuing, the statement further noted: “Given the ongoing probes, Puntland suggests [Petroleum and Mineral Resources Ministry] to rescind the agreement it signed with Soma Oil & Gas”.

On Wednesday, UK’s Serious Fraud Office (SFO) investigated the company’s headquarters in London, Reuters reported.

Mired into a protracted conflict for over two decades, Somalia is becoming a frontier for Oil and Gas.

UN-backed national government has drafted first petroleum bill and reportedly awaits cabinet passage in the coming weeks.

Relations between Mogadishu-based Federal Government and Puntland have long soured over the legitimacy of granting licenses to commercial oil exploration firms. 

GAROWE ONLINE