Somalia's President Mohamed Farmaajo has rejected an oil revenue sharing deal signed by the petroleum ministry and an American firm.
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 petroleum ministry and Coastline Exploration have not yet commented on the presidency's statement.
Prime Minister Mohamed Hussein Roble has also rejected the deal.
On Sunday, Somalia’s auditor-general said he had lodged a legal case with the attorney-general.
He claimed the petroleum ministry had signed an “unlawful agreement” which puts at risk Somali resources and the coming generation”.
He has also asked the ministry of internal affairs to launch an investigation into the matter.
The development indicates a lack of coordination among different government departments, as the country gears up to complete much-delayed elections.
Source: BBC
