Somali President, Mohamed Abdullahi Farmajo has today signed the petroleum bill into barely a month after the Upper House approved it.
During signing the bill, the president thanked to both the Speakers of the Federal Parliament of Somalia, the Cabinet, lawmakers and all Somali experts,who took part in the effort to make this a legacy law
The president said the law will be a regulatory framework that will help to attract investment in exploration in and outside Somalia.
The new legislation allows for the creation of institutions to oversee the sector and for revenue sharing between the central government and federal states, among other objectives.
Somalia is a nation rich in hydrocarbons. Geological structures indicate that the potential is at least as significant as neighbouring basins located in Seychelles, Madagascar, Kenya, Tanzania and Mozambique.
The Horn of Africa nation has embarked on its path to transform its petroleum industry and attract the attention of new investors. Significant progress has been made in recent years.
Early last year Somalia began preliminary preparations for a licensing round for 15 exploration blocks covering a total of 75,000 square kilometres, according to the statement.
The country is currently on an international roadshow to showcase the exploration opportunities available in its hydrocarbons sector.