The UN has suggested that Somalia endorse a moratorium on oil deals until the country has the legislation in place for an oil industry. For its part Somalia is opposing the UN’s proposal, according to Finance Minister Mohamed Adan (picture). “It’s a sovereign issue,” Adan told Petroleumafrica. “We will not welcome a blanket oil moratorium.”

The suggestion of a moratorium on oil deals is not a new suggestion; the UN issued the recommendation previously in 2013. However, a new UN Monitoring Group report on Somalia is to be released in mid-October, that the Security Council bans any oil deals in Somalia. The group argues that the country lacks a legal and regulatory framework to oversee the exploitation of energy resources.

For the past 25 years, the country has lacked a functioning government and has been plagued by civil war and an insurgency by Al Qaeda that has been playing havoc not only in Somalia but in neighboring Kenya also.

“We will not go ahead with any profit-sharing arrangement without the proper legislation and policy framework," Adan stated.

Meanwhile the World Bank is advising the government to put regulations in place to ensure oil resources benefit its citizens, Bella Bird, the Washington-based lender’s director for Somalia, said in an interview.