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AfrOil POLICY AfrOil

Subsequently, it said, 80% of the state’s share of The bank also reported that the fund would
earnings will go to the fund and 20% will go to be managed by the Ministry of Economy and
the budget. Finance and audited annually by an independ-
In years when government revenues are 10% ent company.
or more below the target level, Maputo will be Additionally, it stated that it had been tasked
permitted to withdraw up to 4% of the previ- with processing the fund’s operations, imple-
ous year’s gas income from the fund in order to menting the fund’s investment policy and pro-
cover the gaps, it added. viding quarterly updates for auditors. ™

SPA appoints new directors to

ensure regional representation

SOMALIA THE Somali Petroleum Authority (SPA), a new
agency established by the federal government to
oversee the hydrocarbon industry, is working to
ensure that all regions of the country are repre-
sented within its governing structures.
In a statement, the SPA reported that it had
now named seven independent directors to its
board. Six were appointed last week with the
approval of Prime Minister Mohamed Hussein
Roble and the Council of Ministers, the agency
said.
It identified the new appointees as Asha
Osman Ahmed, who represents Banadir
Regional Authority and will serve as vice-chair-
man of the board; Ibrahim Ahmed Layte, who
represents Hirshabelle State; Abdulkadir Aden
Mohamud, who represents Galmudug State;
Ibrahim Abdulkadir Mohamed, who represents
South West State; Ahmed Haji Abdi, who rep-
resents Jubaland State; and Abdihafid Ali Dirir,
who represents Somaliland State.
The SPA also noted that Roble and the Coun-
cil of Ministers had approved the appointment
of a seventh board member. It said Mahad Somalia’s current licensing round covers seven offshore blocks (Image: TGS)
Mohamed Sheikh Hassan would serve as the
federal government’s second representative. country’s petroleum industry. The structure of
(The other is Ibrahim Hussein, who was charged our board will ensure that all the member states
last week with serving as chairman and CEO of are able to help shape the development of the
the board.) industry in the interests of the whole country.
The main task of the board will be to ensure The SPA is committed to rigorous standards of
that the country develops a regulatory and fiscal corporate governance in order to achieve our
regime for the oil and gas sector based on “the goal of attracting international investment to
principles of equality, openness, accountability, maximise the economic recovery of the coun-
transparency and non-discrimination in the try’s oil and gas reserves. This will enable [Soma-
interests of all the Somali people,” the statement lia’s] member states to significantly increase
said. investment in education, transport, agriculture
The board will also be obligated to uphold and healthcare infrastructure.”
high health and safety standards for all oil and Somalia is not currently a producer of crude
gas workers and maintain high standards for oil or natural gas. The country launched its first
environmental protection. Additionally, it must offshore bidding round early this year and hopes
institute sound risk management and internal to wrap up bidding in March 2021. The auctions,
control systems and conduct annual reviews on which are being conducted online, cover licence
the efficacy of these systems. areas known as Blocks 152, 153, 164, 165, 177,
Hussein, the board’s new chairman and CEO, 178 and 204. The SPA has described these blocks
said: “We are very excited to welcome new col- as “among the most prospective areas for hydro-
leagues onto the board of the newly estab- carbon explorations and production in Soma-
lished SPA, as together we work to develop the lia.” ™

Week 42 21•October•2020 www. NEWSBASE .com P17