{UAH} What Is Stopping Somalia Producing OIL? - Mbu One Of Worlds Major Oil Producers

What's stopping Somalia producing oil?

Posted at 17:04

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Off the coast of Somalia there are thought to be significant oil reserves.

So much so that BBC Monitoring's Abdullahi Yusuf Osman reports Somalia could become one of the world's major oil producers.

But a row over who owns the right to give permission to explore for oil is proving problematic.

Semi-automous Puntland issues its own oil licenses while the government in Mogadishu wants all oil companies to sign with the authorities in Mogadishu.

The Somali cabinet has just approved a draft bill on licensing. But Puntland says it will not recognize any petroleum law from Mogadishu.

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