Developments in the Legal and Regulatory Framework Petroleum

  • Petroleum  Bill 2017: The bill was endorsed by the Lower House of the Parliament and has been submitted to the Upper House of the Parliament and has passed firs;
  • The Petroleum Environmental Regulations: This Regulation protects the environment, whether onshore or offshore;
  • The Health and Safety Regulations: The Regulations protects the people and equipment;
  • The Downstream Regulation: This Downstream petroleum Regulation covers the transportation, storage, and distribution of petroleum products and its quality control. A Somali standard has been introduced to safeguard the quality of imported petroleum.

Production Sharing Agreement Model Somalia: Somalia has developed its own production sharing agreement model (PSA) that balances between the economic need of Somalia and the attractiveness of Somalia to investors and the International Oil Companies (IOCs).

Petroleum management and revenue sharing agreement

The discussion and agreement on the management of petroleum and resource sharing of the upstream sector in Somalia between the Federal Member States and the Federal Government are drafted and agreed by all Federal Member States and endorsed by the Lower House of the Federal Parliament.

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