Puntland Rejects Hydrocarbon Licensing by Somali Federal Government

[Deeq A.]

Garowe (PP News Desk) – Puntland State government yesterday raised objections to hydrocarbon licensing by the Somali Petroleum Authority. SPA has extended submission dates for license applications from foreign companies.

Puntland Ministry of Energy, Minerals and Water cited the transitional period that Somalia is going through ahead of presidential elections in October 2021 as the reason for its call to delay any hydrocarbon licensing activities by the Federal Government of Somalia.

Contradictory messages: Puntland State President Said Abdullahi Deni.

Puntland government questions the legality of licensing duties of SPA, an agency Puntland State does not recognise.

A petroleum law expert has told Puntland Post that “contradictions mar Puntland stance on SPA. Puntland gives the impression that only a succeeding government could issue petroleum licenses while in the same breath it argued SPA does not have either a representative or legal status in Puntland State.”

The Petroleum Law passed by the Somali Federal Parliament empowers SPA to issue hydrocarbon licenses through a transparent bidding process.

© Puntland Post, 2021

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