Medco, KEC sign shareholder agreement with Somalia government

The government of Somalia signed a shareholders agreement with Kuwait Energy Company (KEC) and Indonesia?s Medco Energi International Tbk on Tuesday to govern the activities at the Somalia Petroleum Corporation, Kuwaiti newspaper Al Watan daily reported on Tuesday.

According to the agreement, the government of Somalia will hold a 51 percent stake, while KEC and Medco Energy International will each hold 24.5 percent.

?This is a milestone event for the Republic of Somalia. Forming Somalia Petroleum Corporation not only provides a firm and transparent basis for developing the oil and gas industry in Somalia, but it in addition it enables the Ministry of Energy and Mining to tap into the natural resources of the country to generate revenue for its people thereby eradicating the prevailing poverty and eliminating the prevailing instability,? Somalia?s Minister of Energy and Mining, Eng. Mohamoud Ali Salah Kanje said on the sidelines of the signing ceremony.

Meanwhile, CEO of Medco Energi International, Darmoyo Doyoatmojo said: ?Medco is proud to have been the pioneer, along with its partner KEC, and a catalyst for building the foundations of the oil industry in Somalia. The oil and gas industry could prove to be a significant source of income for the Government, while directly or indirectly reducing unemployment in the years to come, leading to the establishment of local Somali service companies. We look forward to building our relationship in Somalia.? (*)