Coastline Exploration is considering to sell its oil and gas rights in Somalia following the controversial signing of a production sharing agreement with the Somalia Petroleum Minister Abdirashid Mohamud in February…
“Several US oil companies are interested in buying Coastline Exploration interests” a senior officer of Somalia Petroleum Minister told, “If a major oil company buys those rights the Somali Federal Government will not have the wherewithal to contest the claim that the production sharing agreement is valid” the senior officer added.
In February the Petroleum Minister Abdirashid M. Ahmed signed a production sharing agreement with Coastline Exploration in violation of a presidential decree that barred the signing of agreements until a new government “takes office”.
The controversial production sharing agreement presents the incoming federal government of Somalia with legal challenges far more formidable than the maritime dispute with Kenya after the Transitional Federal Government of Somalia signed a Memorandum of Understanding with Kenya thirteen years ago.
The Prime Minister of Somalia Mohamed Hussein Roble rejected the production sharing agreement but ignored calls to suspend the Petroleum Minister who was summoned by the State Attorney General to answer questions about the agreement.
