Page 11 - AfrOil Week 42 2021

AfrOil POLICY AfrOil

Kenya blasts ICJ ruling awarding

disputed offshore territory to Somalia

KENYA/SOMALIA KENYAN President Uhuru Kenyatta has to lose close to 44% of what it had hoped to gain
rejected a decision by the International Court after this ruling.
of Justice (ICJ) that grants Somalia control of Somalia’s President Mohamed Abdullahi
disputed waters in the Indian Ocean, saying it Mohamed, known as Farmajo, took a different
will further strain relations between the neigh- stance. He said in a speech last week that the
bouring countries. ICJ’s ruling on the border dispute with Kenya
According to a report from The Guardian, was an opportunity for the two countries to col-
Kenyatta accused the United Nations’ principal laborate. “Kenya should instead see the decision
judicial organ of imposing its authority over a of the court as an opportunity to strengthen the
dispute “it had neither jurisdiction nor compe- relationship of our two countries and the collab-
tence” to oversee. He was speaking last week, oration of their neighbouring people,” he said. ™
after the ICJ delineated a new maritime bound-
ary that gives Somalia territorial rights over a
large part of the Indian Ocean that may be rich
in oil and gas reserves.
The president also expressed concern about
the consequences of the court’s decision, Afri-
caNews reported. “While Kenya is not surprised
by the decision, it is profoundly concerned by
the import of the decision and its implications
for the Horn of Africa region, and international
law generally,” Kenyatta said. “At the very onset,
Kenya wishes to indicate that it rejects in total-
ity and does not recognise the findings in the
decision.”
The new maritime border put several off-
shore exploration blocks previously claimed by
Kenya under Somalia’s jurisdiction. According
to some analysts, the change could cause Kenya Kenya has laid claim to a larger section of the offshore zone (Image: ICJ)

Kampala submits bill that would ease

UNOC’s access to oil sale revenues

UGANDA UGANDA’S government has drawn up legisla- revenues from the sale of its share of crude
tion that would allow the national oil company production to cover its own obligations and
(NOC) to access the proceeds from its share of expenses, including tariff payments. This will
future crude production. help the company meet its commitments to
According to The Independent, the govern- the East Africa Crude Oil Pipeline (EACOP)
ment has included provisions to this effect in project, as outlined in the host government
the Public Finance Management (Amendment) agreement (HGA) and tariff and transportation
Bill 2021, which was submitted to Parliament agreement (TTA) signed earlier this year.
on October 15 by Minister of State for Finance, The bill further states that UNOC may not
Planning and Economic Development Amos retain revenues beyond the amount needed to
Lugoolobi. Anita Among, the deputy speaker of cover its contractual expenses and obligations.
Parliament, has referred the bill to the finance It must transfer any surplus funds left over after
committee for review, the newspaper reported. upholding its commitments to the government
If the new legislation is approved, Uganda and to its partners into Uganda’s sovereign
National Oil Co. (UNOC) will be able to use wealth fund, known as the Petroleum Fund.

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