The Financial Governance Committee (#FGC) has issued a damning advisory note concerning the #FGS Ministry of Petroleum and Mineral Resources' (MPMR's) oil & gas licensing efforts.

Current approach provides "poor value for money...that may last for 40 years or more."

(thread)

The FGC raises concerns over "incomplete compliance with the FGS legal framework, and inadequate protection of FGS’s financial interests." Current MPMR approach risks "future legal and/or compensation claims against FGS."
The FGS makes seven principal recommendations. #7: "PSA negotiations do not prioritise short-term revenue (i.e. signature bonuses) at the expense of longer-term value."
The note confirms that Coastline Exploration (https://t.co/YztVl7wCZi) -- a company formed in 2018 and based in the Cayman Islands -- is in fact a rebranding of the discredited Soma Oil & Gas.
"Minimum bidder qualifications are set at relatively low thresholds... By comparison, the 2019 tender protocol required that a bidder include at least one party who has drilled multiple offshore exploration wells."

Grandfathering in "Coastline"? 🤔
"...certain provisions seem to allow the award of PSAs even where a single, potentially incomplete or otherwise non-compliant, bid is received."
"The PSA and the tender protocol issued in November 2020 offer considerably more attractive terms to oil companies than previously contemplated."
Per FGC, no stakeholder consultation appears to have occurred. "A group claiming to represent one clan has recently expressed their rejection of petroleum operations in areas inhabited by their clan."
The FGC also recommends that Federal Member States be properly included in the process.
Conclusion: "...there is a significant risk that any contracts awarded under the license round or through direct negotiations will not protect the interests of the FGS and oil-producing FMS or extract appropriate value for #Somalia’s oil over the lifetime of the PSA."

More from Government

Abbott is pushing a lie to protect incompetence. There is no Federal oversight of the Texas Grid, ergo fewer regulations (sound familiar) - so point one: state legislature needs reform. 2/


2. Point 2: there were clear signs the grid would get overloaded under extreme cold conditions. Why? Due to a vacuum of regulations mandating winterization of turbines and power generators. This from sources, in Texas!

3. Point 3: Of the power shortfall that hit Texas, over 80% was due to problems at coal and gas fired plants. Power generators were just not winterized. Decisions to do so have been ignored since the 1990s.

4. Point 4: these are winterized wind turbines in Denmark. The ocean is frozen. The turbines are generating.


5. #Texas| the main issue is: catastrophic governance at the State level (no Federal oversight of the Texas grid) failing to allocate funding to winterise the Natural Gas, Coal and Wind Turbine elements that contribute to the grid. (~ 80/20

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“We don’t negotiate salaries” is a negotiation tactic.

Always. No, your company is not an exception.

A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.

Listen to Aditya


And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.

I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.

You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.

Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]