Somalia asks Coastline Exploration for documents on PSA signing for probe
GOOBJOOG NEWS|MOGADISHU: Somali government has acceded to a request by the US-based oil explorer Coastline Exploration Ltd to be involved in the investigation surrounding the controversial signing of a Petroleum Sharing Agreement with Petroleum Minister Abdirashid Ahmed in February.
In a letter seen by Goobjoog News addressed to Coastline Exploration CEO Richard Anderson, the Ministry of Foreign Affairs urges the Texas-based company to cooperate with the Somali government by providing documents relating to the PSA signing.
“Without prejudice to the foregoing, the FGS is willing to consider Coastline Exploration Limited’s invitation to investigate the facts and circumstances surrounding the signing of the PSAs more fully (sic),” the letter read in part. It also declared the PSA null and void.
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To actualise the probe, the Ministry says, Coastline should submit, within a week a copy of the letters relating to the signing of the PSA and documentation showing that the former UK based oil explorer Soma Oil and Gas obtained PSAs under the 2013 Seismic Option Agreement and relevant deeds which show that the rights were transferred to Coastline exploration.
Coastline Exploration is also expected to submit documents associated with ‘FGS approvals, either under the Procurement Act or Petroleum Act to award a sole-source contract to Coastline.
Coastline Exploration reportedly obtained rights from Soma Oil to negotiate PSAs with the Somali government following the collapse of the controversial UK oil company which became a subject of investigations in Britain.
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Both Prime Minister Mohamed Roble and outgoing President Mohamed Roble rejected the PSA signing on February 19 and declared it a nullity. However, questions emerged about how the Petroleum Minister inked the deal without the knowledge and consent of the two leaders.
A source privy to the agreement told Goobjoog News in an earlier interview that both the PM and President were ‘aware’ of the deal.