Somalia: Petroleum law ratified

President Mohamed Abdullahi Farmajo has ratified Somalia’s long-awaited petroleum law, paving the way for licensing of exploration blocks. The law, which was approved by parliament in May 2019 includes a revenue-sharing agreement that provides for revenues from any eventual oil production to be distributed through the country’s federal states. It establishes the Somali National Oil Company as the state entity charged with participating in petroleum operations, as well as the Somali Petroleum Authority, which will act as a regulatory body overseeing oil and gas activity.