Somalia denies selling any Kenyan oil blocks

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Somalia says it has not auctioned any oil blocks in a disputed section of the Indian Ocean, contrary to claims by Kenya that resulted in the summoning of its ambassador to Mogadishu.

Last evening, Somalia’s Foreign Minister Ahmad Isse Awad said in a diplomatic response: “Somalia is not now offering, nor does it have any plans to offer, any blocks in the disputed maritime area until the parties’ maritime boundary is decided by the ICJ (International Court of Justice).

The response, filed through the Kenyan Embassy in Mogadishu, was a letter written in uncharacteristic diplomatic format, taking on first person plural instead of the usual third person.

By the time of going to press, Nairobi was yet to receive the letter.

“The government of Somalia wishes to reassure the Government of Kenya that it stands by its commitment not to undertake any unilateral activities in the disputed area until such a time as the ICJ renders its judgment,” the minister added.

Mogadishu was referring to a case in which it sued Kenya at the international court, where Kenya is seeking to have the maritime border between the two to run parallel to the latitude eastward south of Kyunga. Somalia wants it to run diagonally, as an extension of the land border.

But the actual cause of friction is a presentation made last week by the Somali Federal Ministry of Petroleum and Mineral Resources, depicting a profile of its oil stock to investors in London, in which it promised better returns for those who would take up the offer.

In the document, the Somali government offered the blocks to investors, buoyed by seismic data gathered by consultancy firm Spectrum Geo.

Under the Protocol, investors have until July 11 this year to apply to be qualified for consideration, after which there will be three months of interaction to determine the final agreement on revenue sharing.

The offer also says consortiums should be formed by October 17, before successful bids are notified by November 7.

The winners will then be asked to sign agreements on production by December 9.