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Somalia Signs Oil Production-Sharing Agreement With US Company

President Hassan Sheikh Mohamud

President Hassan Sheikh Mohamud

Photographer: Olivier Douliery/AFP/Getty Images

Somalia’s government signed an oil-production sharing agreement with US-based Coastline Exploration Ltd., the latest step toward developing the war-torn nation’s energy industry.

Coastline, based in Houston, Texas, paid $7 million to the government for seven agreements and will now proceed with an exploration program, the government said in a statement on Friday. The deal was signed after a review of an accord signed in February that was deemed illegal by the Horn of Africa nation’s former government.