Petroleum Law of the Federal Republic of Somalia

The Comprehensive Legal and Institutional Framework of the Somali Petroleum Sector: Resource Ownership and Revenue Sharing, Institutional Management through the Ministry, Somali Petroleum Authority (SPA), and Somali National Oil Company (SONOC), Licensing Regimes, Operational Governance, Environmental Stewardship, and Regulatory Architecture under the 2020 Petroleum Law

Duration: 3 Days Language: English & Somali

Table of Contents

  1. Chapter 1: Introduction to the Petroleum Law and Sovereign Ownership(Ref: Petroleum Law 2020, Objectives, Article 3)
  2. Chapter 2: The Fiscal Social Contract and Revenue Sharing(Ref: Petroleum Law 2020, Revenue Sharing of Petroleum Resources, Article 6)
  3. Chapter 3: Institutional Governance: Ministry, SPA, and SONOC(Ref: Petroleum Law 2020, Duties of the Ministry, Article 18)
  4. Chapter 4: Licensing Regimes and Competitive Tendering(Ref: Petroleum Law 2020, Production Sharing Agreements, Article 24)
  5. Chapter 5: Operational Standards and Environmental Stewardship(Ref: Petroleum Law 2020, Practice Standards, Article 36)
  6. Chapter 6: Legal Enforcement, Transparency, and Legacy Contracts(Ref: Petroleum Law 2020, Transparency, Article 44)

Overall Objective

The primary objective of this course is to equip legal students and new lawyers with a profound understanding of the statutory framework governing Somalia’s energy sector to foster professional excellence in resource management. (Ref: Petroleum Law 2020, Objectives, Article 3).

By analyzing the legal mandates, students will learn to navigate the complexities of international production sharing agreements and institutional oversight. (Ref: Petroleum Law 2020, Production Sharing Agreements, Article 24).

This course links theoretical legal principles to real-world applications such as environmental protection and competitive tendering. (Ref: Petroleum Law 2020, Environmental Protection, Article 11).

Ultimately, the objective is to prepare the next generation of Somali lawyers to represent the state and private interests with integrity and technical precision. (Ref: Petroleum Law 2020, Practice Standards, Article 36).

Course Description

This course provides a comprehensive roadmap through the 2020 Petroleum Law, focusing on the transition from a post-conflict legal vacuum to a modern, institutionalized energy regime. (Ref: Petroleum Law 2020, Transition Clause, Article 54). Participants will explore how the Somali Petroleum Authority acts as the regulatory guardian, ensuring that all operations follow “Good Oilfield Practices.” (Ref: Petroleum Law 2020, Establishment and Duties of the Somali Petroleum Authority, Article 19).

The curriculum bridges the gap between sovereign rights and commercial participation through the Somali National Oil Company. (Ref: Petroleum Law 2020, Establishment of the Somali National Oil Company, Article 20). Furthermore, the course emphasizes the critical importance of the 2018 Baidoa Agreement in maintaining national unity through equitable revenue sharing. (Ref: Petroleum Law 2020, Ownership, Management and Sharing of Revenue from Natural Resources of the Country, Article 2).

It covers the technicalities of licensing, including the legal requirements for reconnaissance and surface rights. (Ref: Petroleum Law 2020, Reconnaissance License, Article 23). By the end of the course, students will be proficient in identifying legal risks and opportunities within the Somali hydrocarbon landscape. (Ref: Petroleum Law 2020, Offenses and Penalties, Article 48).

Learning Outcomes

1. Articulate State Ownership of Petroleum Resources

Students will articulate the legal basis for the state’s ownership of petroleum resources as national property. Article four of the Petroleum Law 2020 mandates that the Federal Government and Federal Member States represent the Somali people in resource management. (Ref: Petroleum Law 2020, Ownership of Petroleum, Article 4).

2. Master Institutional Roles

Legal practitioners will master the institutional roles of the Ministry, the SPA, and SONOC. Article nineteen of the Petroleum Law 2020 states that the SPA is a legal person responsible for regulating petroleum activities. Participants will learn to distinguish between policy-making and commercial operations. (Ref: Petroleum Law 2020, Establishment and Duties of the Somali Petroleum Authority, Article 19).

3. Draft Production Sharing Agreements

Participants will gain the skill to draft and review Production Sharing Agreements (PSAs) according to statutory requirements. Article twenty-four of the Petroleum Law 2020 states that PSAs must include terms for royalties, work obligations, and training for Somali citizens. (Ref: Petroleum Law 2020, Production Sharing Agreements, Article 24).

4. Environmental Protection Procedures

Students will identify the legal procedures for environmental protection and decommissioning. Article twenty-eight of the Petroleum Law 2020 states that license holders must prevent pollution and damage to marine life and livestock. This ensures that future lawyers prioritize ecological sustainability. (Ref: Petroleum Law 2020, Environmental Protection, Article 28).

5. Analyze Fiscal Architecture

Learners will analyze the fiscal architecture of the petroleum sector, including revenue sharing formulas. Article six of the Petroleum Law 2020 states that revenues must be shared based on the 2018 Baidoa Agreement. Students will gain competency in calculating regional distributions. (Ref: Petroleum Law 2020, Revenue Sharing of Petroleum Resources, Article 6).

6. Legal Enforcement and Penalties

Lawyers will become proficient in legal enforcement and the penalties for unauthorized operations. Article forty-eight of the Petroleum Law 2020 states that the Ministry shall issue specific regulations regarding penalties for non-compliance. (Ref: Petroleum Law 2020, Offenses and Penalties, Article 48).

7. Transform Legacy Rights

Practitioners will understand the legal process for transforming legacy rights into modern contracts. Article fifty-four of the Petroleum Law 2020 states that pre-1991 concessions can be converted into PSAs upon proving fulfillment of past obligations. (Ref: Petroleum Law 2020, Transition Clause, Article 54).

Course Modules

Module 1: Sovereignty and the National Interest

Objective: To define the legal boundaries of resource ownership and state sovereignty. (Ref: Petroleum Law 2020, Ownership of Petroleum, Article 4).

Topics Covered: National property rights, the 8 core objectives of the law, and the scope of the 2020 legislation. (Ref: Petroleum Law 2020, Objectives, Article 3).

Expected Outcomes: Ability to explain why petroleum is a national trust and defend sovereign interests in legal disputes.

Module 2: Institutional Architecture and Oversight

Objective: To understand the separation of powers between policy-making, regulation, and commerce. (Ref: Petroleum Law 2020, Duties of the Ministry, Article 18).

Topics Covered: Strategy development by the Ministry, licensing by the SPA, and the commercial mandate of SONOC. (Ref: Petroleum Law 2020, Establishment and Duties of the Somali Petroleum Authority, Article 19).

Expected Outcomes: Knowledge of how to engage with the SPA for regulatory approvals. (Ref: Petroleum Law 2020, Approvals of the Somali Petroleum Authority, Article 31).

Module 3: The Licensing Lifecycle

Objective: To master the procedural steps for securing exploration and production rights. (Ref: Petroleum Law 2020, Production Sharing Agreements, Article 24).

Topics Covered: Non-exclusive surveys, exclusive PSA rights, and surface rights for infrastructure. (Ref: Petroleum Law 2020, License for Surface Operations, Article 25).

Expected Outcomes: Competency in identifying the mandatory clauses of a Somali PSA.

Module 4: Operational Excellence and Environmental Safety

Objective: To analyze the legal requirements for safe and efficient petroleum operations. (Ref: Petroleum Law 2020, Practice Standards, Article 36).

Topics Covered: Good Oilfield Practices, unitization of reservoirs, and decommissioning funds. (Ref: Petroleum Law 2020, Unitization Agreement, Article 32).

Expected Outcomes: Proficiency in applying decommissioning law to site closure. (Ref: Petroleum Law 2020, Decommissioning of Petroleum Equipment, Article 37).

Module 5: Fiscal Participation and Transparency

Objective: To understand the financial obligations of companies and the state’s transparency duties. (Ref: Petroleum Law 2020, Transparency, Article 44).

Topics Covered: Corporate income tax, royalties, and independent auditing of revenues. (Ref: Baidoa Agreement, Revenue Sharing Table, Article 6).

Expected Outcomes: Ability to monitor state and company compliance with transparency standards.

Glossary of Key Terms

ApprovalRefers to reconnaissance licenses, PSAs, or surface rights agreements entered into by the Government. (Ref: Article 2.1).
ContractorA person who has entered into a PSA with the Ministry of Petroleum and Mineral Resources. (Ref: Article 2.6).
Crude OilUnrefined oil mineral and all liquid hydrocarbons condensed from natural gas. (Ref: Article 2.8).
DecommissioningThe abandonment, dismantling, or removal of structures and equipment to protect the environment. (Ref: Article 2.9).
Good Oilfield PracticesStandards defined in Article 36 for efficient and safe operations. (Ref: Article 2.10).
PetroleumAny naturally occurring hydrocarbon in gas, liquid, or solid form. (Ref: Article 2.20).
Production Sharing AgreementAn agreement where the contractor receives a share of produced petroleum for their work. (Ref: Article 2.22).
Reconnaissance LicenseA license issued under Article 23 for non-drilling surveys. (Ref: Article 2.24).
Somali Petroleum Authority (SPA)The regulatory body established under Article 19. (Ref: Article 2.28).
Somali National Oil Company (SONOC)The commercial state company established under Article 20. (Ref: Article 2.29).

Article Numbers for Syllabus Study

  • Article 3 (Objectives): Studied to understand the intent and spirit of the law.
  • Article 6 (Revenue Sharing): Essential for understanding the fiscal relationship between federal and state governments.
  • Article 19 (SPA): Critical for knowing who the primary regulatory counterpart is for lawyers.
  • Article 24 (PSA Requirements): The roadmap for drafting legal contracts for exploration.
  • Article 36 (Operational Standards): Necessary for technical lawyers to understand compliance.
  • Article 44 (Transparency): Vital for anti-corruption and public advocacy lawyers.
  • Article 54 (Legacy Contracts): Essential for any lawyer dealing with pre-war claims.

Why Choose This Course?

This course offers a competitive edge because it provides the only in-depth analysis of the institutional roles mandated by Articles 19 and 20. (Ref: Petroleum Law 2020, Establishment and Duties of the Somali Petroleum Authority, Article 19).

Lawyers who master this curriculum will be uniquely positioned to advise both the Somali government and international investors on the specific requirements of the 2020 Law. Understanding the Baidoa Agreement’s legal status is essential for any legal professional working in federalized Somalia. (Ref: Petroleum Law 2020, Revenue Sharing of Petroleum Resources, Article 6).

The course emphasizes the technical “Good Oilfield Practices” that are now legally binding under Article 36. This bridge between law and engineering is rare and highly valued in the global energy sector. Participants will emerge with the skills to lead decommissioning audits and transparency initiatives. (Ref: Petroleum Law 2020, Decommissioning of Petroleum Equipment, Article 37).

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