Somalia’s President Mohamed Farmaajo has rejected an oil revenue sharing deal signed by the petroleum ministry and an American firm, the BBC reports.
Coastline Exploration said it had signed seven deals related to offshore oil and gas exploration.
“Somalia contains the largest remaining unexplored set of basins situated in warm waters in the world. We are honoured and excited to be part of its future development,” it added in a statement.
But a statement from Somalia’s presidency announced the “nullification” of the deal, saying Mr Farmaajo had not been consulted.
It added that the deal contravened a presidential decree forbidding such agreements during an election year, the report says.