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Saturday December 21, 2019
DUBLIN--
Somalia offers production sharing agreements for upstream petroleum operations. Following years of instability the government has launched its First Offshore Licensing Round, which will continue into 2020. New legislation to accompany the round is awaiting enactment by parliament. If enacted, the new legislation would implement a royalty of between 5-35% and a profitability-based profit sharing mechanism. Additional legislative uncertainty remains whilst updates to the constitution are pending. Contracts signed before 1991 would be required to be renegotiated under the new terms. Any successful renegotiations are likely set the tone for future investment in the area.
Somalia Upstream Fiscal and Regulatory Guide, presents the essential information relating to the terms which govern investment into Somalia’s upstream oil and gas sector. The report sets out in detail the contractual framework under which firms must operate in the industry, clearly defining factors affecting profitability and quantifying the state’s take from hydrocarbon production. Considering political, economic and industry specific variables, the report also analyses future trends for Somalia’s upstream oil and gas investment climate.
Scope
Overview of current fiscal terms governing upstream oil and gas operations in Somalia
Assessment of the current fiscal regime's state take and attractiveness to investors
Charts illustrating the regime structure, and legal and institutional frameworks
Detail on legal framework and governing bodies administering the industry
Levels of upfront payments and taxation applicable to oil and gas production
Information on application of fiscal and regulatory terms to specific licenses
Outlook on future of fiscal and regulatory terms in Somalia
Reasons to buy
Understand the complex regulations and contractual requirements applicable to Somalia's upstream oil and gas sector
Evaluate factors determining profit levels in the industry
Identify potential regulatory issues facing investors in the country's upstream sector
Utilize considered insight on future trends to inform decision-making
