New PSA? Old concessions to be renegotiated?
PUNTLAND STATE OF SOMALIA
Federal Government Violates Constitution, Imperils Stability in Somalia
PRESS RELEASE
26 February 2013
The Federal Government (FG) of Somalia is violating the country’s Provisional Federal Constitution (PFC), which the elected leaders were sworn to uphold.
The FG has actively interfered with the formation of emerging Federated States, such as Jubaland in southern Somalia, directly contradicting the principles and provisions of the PFC and abandoning the aspirations of the Somali people, who hope for responsible and accountable governance that paves the way for peace, stability and development, and promotes justice, political cohesion, outreach and national reconciliation.
Instead of focusing on principal priorities, the FG has adventured illegitimately on resource exploitation by hiring foreign advisers to build the ‘Somalia Petroleum Company’ and actively pursue oil companies – former concession holders as well as new companies – to renegotiate old concession or sign new Production Sharing Agreements (PSAs) to areas that are not under FG’s control. This is contrary to the PFC and the FG should refrain from such broker activities until all Federated States are formed, so the Somali people have a role in the fundamental decisions of their future.
This unilateral move is a dangerous ploy that threatens to unravel political cohesion and potentially imperil stabilization progress in Somalia. The FG is advised to invest its time and energy on repairing and rebuilding the disintegrated Federal Republic, instead of attempting to sell what little remains of Somalia. The PFC clearly defines power belongs to the people, as represented by the Federated States, and defers political power distribution, revenue sharing, and natural resources management, until the Federated States of Somalia is completed and a negotiated settlement is reached between the Federal Government and the Federated States. Until such time, Puntland State shall retain and exercise powers endowed in the Puntland Constitution.
Not looking good and again more delays likely....
Day traders will be buying now and then ramping this looking to bounce it a little before the sell out later today.
Situation normal.