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Somalia denies China oil links



By Upstream staff 

Somalia's interim Prime Minister Ali Mohamed Gedi has said that he was not aware of any deal struck between his government and Chinese energy companies regarding the allocation of oil exploration rights.

Gedi's comments were interpreted by the Financial Times as signalling a potential internal power struggle within the Somali government.

The newspaper reported it had seen a document signed by Somalia's president granting two officials power of attorney to sign a production sharing agreement with China National Offshore Oil Corporation (CNOOC) and China International Oil and Gas (CIOG).

"I'm not aware of this. I don't know anything about it," Gedi said.

The Financial Times said that the document signed by President Abdullahi Yusuf Ahmed gave the two officials power to sign an agreement on behalf of the Somali government in Beijing on 24 May.

It added that an unnamed Western diplomat said it was unsurprising to find the country's prime minister and president working seemingly independently of each other.

The paper also said that Somalia's energy minister met with officials from the two companies last month.

Gedi told the paper, however, that no valid oil deals could be struck until the new oil law was endorsed by Somalia's interim parliament.

"There are many companies interested in exploring oil and gas in Somalia, but in order to protect the wealth of the country and the interests of the Somali people, we cannot operate without a regulatory body, without rules and regulations," he said.

He said, though, that he was aware of "informal contacts" between members of his government and oil companies.


Tuesday, 17 July, 2007, 01:14 GMT  | last updated: Tuesday, 17 July, 2007, 01:48 GMT

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