Prior to 2008, petroleum operations were managed by concessions granted by central Government. This status came to an end on 7 August 2008 as a result of the Petroleum Law passed by the Somali interim parliament and signed by His Excellency Abdullahi Yusuf Ahmed, The President of Transitional Federal Government of Somalia. The Petroleum Law stated that the Ministry of Petroleum and Mineral Resources became the custodian of petroleum resources in Somalia and any petroleum operations and contracts would be managed under a Production Sharing Contract approach, as is common in many parts of the world. In 2012, Somalia created the federal government and then gradually set up the legal framework to sign exploration and production agreements with international oil companies, including Revenue Sharing Agreement, setting proportion of petroleum revenue distribution between the Federal Government of Somalia, the 5 Federal Member States plus Banaadir region and their local communities SPA to add / provide first draft