Somali T. Federal Government Ministry of Petroleum and Energy Working Together for Africa’s Future May 2007 Nairobi

Somali T. Federal Government Ministry of Petroleum and Energy Allow me Mr Chairman on behalf of my delegation to thank our Neighbours Kenya, Uganda, Ethiopia, IGAD countries, and the AU in stabilizing Somalia. As you know Somalia Government is full controll of the country We would also like to thank the organizers of conference such Ministry of Energy of Kenya leading by Hon Minster Kairuto Murungu, UNCTAD and Kenya National Oil Company. Before I move to elaborate further I would like to inform you that Somalia is once again open for business of Oil and Gas exploration and investment.

Somali T. Federal Government Ministry of Petroleum and Energy The impact of recent energy price fluctuations have been difficult on both the consumer and the government in formulating an energy policy –On the government Planning has been set to formulate news petroleum law which has approved by cabinet of minister and now its on process to approve by the legistlations very soon. –On the consumer rising costs of Transportation was noted which had effect on inflation The Somali Federal Government is in the early stages of developing a national strategy of which we hope to finalize it within a short period We are in the early stages of development however we face both technical and financial challenges of which we hope to tap and learn from our other African brothers who have vast experience in the Energy sector.

Somali T. Federal Government Ministry of Petroleum and Energy Governments should look at international benchmarks as a guideline for PPP without compromising their sovereignty. The Private sector should be encouraged further with tax concessions and other sweeteners Though there has been a dearth of investments from the developed world since independence. We do hope that “capital apartheid” is halted and Africa is taken as a partner rather than as a risky place to invest in. Emphasis on better Good Governance Encourage more Intra African cooperation in both DEBT and EQUITY issues in PPP to make International investors share the risks amicable in Projects

Somali T. Federal Government Ministry of Petroleum and Energy Countries with surplus Energy should “trickle down” to deficit countries via an integrated Energy policy. The STFG welcomes and encourages a harmonized hydrocarbon product specifications, Prices, and National Fiscal Policies. Though UNCTAD has been a driving engine of technical assistance to the least developed countries in Africa more emphasis should be laid on Intra-African technical cooperation. The Best way to deliver technical assistance to Africa is to encourage an Integrated MIS system and cross sharing of information and data across African countries. The 12 th African Oil and Gas conference Trade and finance which will take place in Equatorial Guinea Somalia will participate and bring a new energy policy.

Somali T. Federal Government Ministry of Petroleum and Energy Thank You Hon Mohamud Abdi Hassan Deputy Minister of Petroleum and Energy