Puntland State announces its approval of an oil production agreement

 The Somali state of Puntland announced its approval and support for the agreement signed by the federal government with international oil companies. The state withdrew its decision, which was opposing the agreements concluded by the federal government with international oil companies, and the natural resource sharing law passed by the federal parliament in 2020.

Puntland State President Said Deni, who spoke today at the opening of the 51st session of the state parliament, said Puntland welcomes the exploitation of Somalia's resources and is ready to participate in the exploitation of those resources.

Puntland had previously warned about the activities related to the oil extraction agreement in Somalia by the federal government and the implementation of the petroleum legislation approved by the Federal Parliament in 2020 which it described as illegal.

A few days ago, the Somali federal government announced its approval of the deal with the Coastline Oil Exploration Company, after reconsidering the agreement concluded between it and the company. The announcement came after President Hassan Sheikh Mahmoud received senior officials from the company at the Presidential Palace in the capital, Mogadishu.

A statement issued by the Somali presidency confirmed that five amendments were made in the deal signed in February 2022, and Mahmoud Mashrou, Minister of State for Petroleum and Mineral Resources, said that the amendments were made in accordance with legal advice from experts.