Somalia Petroleum Law - SomaliTalk.com

Somalia Petroleum Policy: Consequences of Principle 4• exploration, development and production ofpetroleum in other countries has a mixed history• some early grants in the form of concessions weretantamount to a relinquishment of sovereignty by thehost state• often these grants did not involved a fair sharing ofthe results of the exploration, especially aspetroleum activities became more profitable• this has sometimes resulted in expropriation by thestate of the IOCs' petroleum rights• these factors tend to make states wary of IOCinvestment, and IOCs wary of investing in stateswhose political stability is uncertain• Somalia should avoid repeating these problems