Federal Government to Get Lion-Share in the Oil Revenues
The Lower House of Parliament has approved the national resource sharing deal that has apportioned the proceeds each party is entitled to in the sale of oil. Under the new deal, the Federal government will have 55% share, oil producing region 25%, oil producing district 10, non-oil producing state 10%. Measure goes to Upper House. But some regions have have expressed concern about the current effort to pass the law “without input” from regions. Baidoa agreement says ministry of petroleum cannot alone make decisions, but draft law says the ministry will make decisions until Petroleum agency formed. Contradiction? There are also questions whether oil exploration agreements reached w foreign oil companies later this year, and signed by the fed. govt will be put before the parliament for approval. Petroleum ministry officials doubted this will happen. Will the agreements be published?