Soma Oil & Gas: SFO Investigation

Lord Avebury Excerpts

Monday 14th September 2015 Lords Chamber

Asked by

[Lord Avebury]

To ask Her Majesty’s Government what measures they intend to propose to the United Nations Security Council in the light of the Serious Fraud Office’s criminal investigation into Soma Oil and Gas Holdings, Soma Oil and Gas Exploration, Soma Management and others in relation to allegations of corruption in Somalia.

[The Minister of State, Foreign and Commonwealth Office (Baroness Anelay of St Johns) (Con)]

My Lords, the Serious Fraud Office’s investigation into Soma Oil & Gas is an ongoing, independent investigation. It would not be appropriate to comment at this stage, nor to take any action on the basis of it. We are advising the federal Government of Somalia of the importance of establishing an effective legal and regulatory framework before signing oil or gas contracts, due to the high risks of corruption and conflict associated with the sector.

[Lord Avebury (LD)]

My Lords, Soma has contracts with the Government of Somalia giving it rights over 60,000 square kilometres of the continental shelf and creaming off up to 90% of the state’s oil revenues. Are the Government concerned that Soma paid civil servants advising on the deal a total of $360,000 and the so-called independent legal adviser another $500,000? When is the relevant Security Council committee due to consider the report on these payments, submitted to it on 3 August by the Somalia and Eritrea monitoring group?

[Baroness Anelay of St Johns]

My Lords, on the first question, I perhaps did not make it clear enough in my first Answer that this matter is being investigated by the SFO, and investigated as the result of a leaked confidential document. In light of both those circumstances, it is not the practice of any Government to comment on such matters. On the noble Lord’s second question, I understand that the United Nations will discuss these matters again shortly.