Somaliland Defends Issuance of Exploration Licences In an Increasing War of Words With Somalia

The people’s republic of Somaliland has defended exploration licenses issued to international oil corporations including Genel Energy following a statement terming issuance of PSCs to international investors as illegal.

In a statement dated 29th December 2022 the Somaliland Government defended its rights to issue such permits pointing to the authority of the Somalilanders to promote and protect their natural resources.

The statement from the Ministry of Energy and Minerals also said it has the mandate to engage foreign investors in the oil and gas sector as “described by the constitution and the Upstream Petroleum Act 95/2001” of Somaliland.

“No one other than the Somaliland Government has the authority to claim or award an exploration license within Somaliland,” the ministry said in a statement.

The statement also hit at Somalia calling it a ‘weak administration’ which has continuously ‘unsuccessfully attempted to lay claim’ to its resources and projects including the multi-billion dollar Berbera Port and the Somaliland Development Fund.

“We will continue to engage and work closely with our international partners such as Genel Energy, OPIC Somaliland Corporation (CPC Corporation, RAK Gas among others on our shared interest without fear or favor.”

“Somaliland is equipped with capacities of both deterrence and resilience, allowing it to combat interference from those sho seek to impede our progress”