It is perhaps not surprising that there is a great deal of interest in the blocks that are currently the subject of precepts. Given the magnitude of the opportunities and robust processes we have put in place, this is not surprising. Successful oil companies must sign agreements with the government on production sharing, which define their environmental responsibility, using methods and procedures that minimize the impact of their work, but also immediately define the financial terms of our partnership. The government will also abide by all previous agreements and these companies will have to comply with the new terms of our production-sharing agreements. The agreement on oil ownership and revenue sharing, adopted by the Bundestag on 20 May, lists income distributions for different types of income and different rates for onshore and offshore income (see Table 1). For example, the central government will take 55pc of the offshore tax, the oil producing state will receive 25pc, the local area of production 10pc and the non-oil producing countries 10pc. The creation of a national investment fund is also planned. According to the Oil Ministry, the semi-autonomous region of Puntland is a party to the agreement. Section 2 indicates the general status of the issuance of a natural resource licence of more than 24 nautical miles from the Exclusive Economic Zone (EEZ), which the federal government carries through the federal Department of Fisheries and Marine Resources.
More than 24 nautical miles will fall into the trap of the Region`s Member States. At the same time, the federal department will have representatives in the capitals to facilitate the exchange of information on licensing with respect to the standards set for granting one of Somalia`s fishing rules. The licence fee is based on the type of application requested by the applicant, given the competitiveness of the ports that issue such a document. The cost of the levy is based on the international standard for the application of fishing licences. Only an international road show has been organised so far to promote the Tour of London in March and the next one is not scheduled in Houston until the end of September or the beginning of October. Ahmed says the timetable has slipped because the ministry has focused on passing the oil law. Spectrum Geo, the company that distributes 2D seismic data for licensing blocks, has so far shown data to about 20 companies, Ahmed says. The production sharing model for the blocks will be detailed in the coming months. Parliament`s approval of a new oil law, which includes a revenue-sharing agreement with the country`s constituent states, is expected to make Somalia`s current offshore licensing cycle more fluid.