Somalia May Pay 90% Oil Revenue to Explorer Under Draft Deal
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Soma Oil & Gas Holdings Ltd., chaired by former U.K. Conservative Party leader Michael Howard, has proposed a deal with the Somali government that may grant it as much as 90 percent of the country’s prospective oil revenue.
A draft production-sharing agreement, obtained by Bloomberg from an official close to the negotiations, sets the state’s share of revenue on the first 25,000 barrels per day at 10 percent if found at a depth of greater than 1,000 meters (3,281 feet) and when oil costs less than $70 a barrel. If output exceeds 150,000 barrels, Somalia’s take rises to 30 percent. Crude for delivery in June rose 3.5 percent to $59.70 a barrel at 4:53 p.m. in London on Friday.