Not too sure what rental service fee is, but 1.7 million in relations to oil just feels small.
Yes unfortunately we have a lot of catching up to do. This is the first installment of rental fees from these major corporations for having drilling rights in the blocks they were granted. There will be more licensees given next month. You could read this article for better clarification, this is a short passage from it:
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But Somalia will prosper despite the many setbacks, successes and challenges we may face. Our goal is to proceed in the best interests of the Somali people – which will only happen if we ensure an attractive regulatory and fiscal environment for our international partners. We will commit to being transparent and open about our dealings.
Next month I will be in Houston showcasing our new model Product Sharing Agreement as we prepare to invite applications for exploration licences. It is a co-incidence that Somalia’s land mass is the same as Texas, but we are in no doubt that the energy industry’s impact on the development of our country could be every bit as great as it was in Texas a century ago. At that time the burgeoning industry delivered excellent returns to its shareholders whilst financing investment in everything from world class infrastructure to high skilled jobs and education. This is a pattern we believe will be repeated in my country over the coming years and decades.
This is a new chapter in Somalia’s history. Somalia is open for business."
https://africaoilandpower.com/2019/...r ... ll-speech/
