Kosmos' secondary listing is at risk as the Saharawi government had strongly condemned the company's move to list on the LSE. The Sahrawi government has threatened the company's licences in the region as well as legal action against Kosmos and its advisors.
The listing would set a precedent for legal proceedings regarding companies operating in the disputed region which could drag out for years to come. The press release by the Saharwi government is below.
--------------------------------------
Media release – Communiqué
For immediate release
Saharawi government responds to the proposed listing of Kosmos Energy Ltd. on the London Stock Exchange
Bir Lehlu, Western Sahara (August 16, 2017), The government of the Saharawi Republic (the SADR) notes with concern recently expressed plans of the United States-based petroleum company Kosmos Energy Ltd. to trade in securities in a secondary listing on the London Stock Exchange (the LSE).
“Any effort by Kosmos to raise additional capital, including securities offerings and especially on an exchange which is, for the time being, subject to European law results in clear risks for the company and others financially interested in it. Kosmos continues with seabed petroleum exploration in the coastal waters of occupied Western Sahara with an established basis for legal action against the company and its supporting enterprises”, remarked Emhamed Khadad, the SADR official responsible for natural resources following Kosmos Energy’s recent announcement.
Western Sahara, routinely referred to as Africa’s last colony, has been illegally occupied across much of its inland area and part of its coast since 1975. A commitment by the United Nations organization to deliver a self-determination referendum to the Saharawi people who had been the sole, exclusive occupants of the territory, has been stalled as a result of continuing annexation efforts including resources development purportedly done to generate economic benefits for the territory. Four senior level international and national courts have confirmed an occupying Morocco to be without right or title to the territory. “What this means”, noted Khadad, “is that the rule of international law holds that the occupying state is unable to offer exploration licenses and, even less, hold out any rights to petroleum that could be recovered from the seabed.”
In a December 2016 judgment the Court of Justice of the European Union confirmed that Western Sahara is not a part of Morocco and that the kingdom is unable to exercise treaty authority over the territory in respect of trade matters.
A June 2017 judgment of South Africa’s High Court, concerning a shipment of phosphate rock exported seized after export from Western Sahara, concluded that:
“Morocco has no claim to sovereignty over Western Sahara ... Furthermore, it acquired the territory by force [and] we conclude that howsoever Morocco's presence in Western Sahara may be described, it does not exercise sovereignty over the territory".
(A copy of the decision in Saharawi Arab Democratic Republic and Another v Owner and Charterers of the MV 'NM Cherry Blossom' and Others [2017] ZAECPEHC 31 is available online at: <www.saflii.org/za/cases/ZAECPEHC/2017/31.html>.)
The 2017 and 2016 judgments follow one of the United Kingdom High Court in 2015 which confirmed the territorial status of Western Sahara as not being part of Morocco. A securities listing on the LSE, and related activity, faces the risk of precedent in the United Kingdom and by parallel and separate proceedings, in the Court of Justice of the European Union.
“There is no longer any speculation by the SADR government in its safeguarding of the sovereign resource rights of the Saharawi people that formal legal measures will be resorted to in the face of financial activity to capitalize the taking of our resources, and as against activities as such. International law is clear about such matters and we will continue to employ it in the face of a universally derided, illegal occupation”, observed Khadad.
# # #
For additional information and media contact:
Mr. Kamal Fadel
Saharawi Republic representative for Australia and New Zealand
Senior executive of the SADR Petroleum & Mining Authority
T: + 61 2 92 65 82 58
The listing would set a precedent for legal proceedings regarding companies operating in the disputed region which could drag out for years to come. The press release by the Saharwi government is below.
--------------------------------------
Media release – Communiqué
For immediate release
Saharawi government responds to the proposed listing of Kosmos Energy Ltd. on the London Stock Exchange
Bir Lehlu, Western Sahara (August 16, 2017), The government of the Saharawi Republic (the SADR) notes with concern recently expressed plans of the United States-based petroleum company Kosmos Energy Ltd. to trade in securities in a secondary listing on the London Stock Exchange (the LSE).
“Any effort by Kosmos to raise additional capital, including securities offerings and especially on an exchange which is, for the time being, subject to European law results in clear risks for the company and others financially interested in it. Kosmos continues with seabed petroleum exploration in the coastal waters of occupied Western Sahara with an established basis for legal action against the company and its supporting enterprises”, remarked Emhamed Khadad, the SADR official responsible for natural resources following Kosmos Energy’s recent announcement.
Western Sahara, routinely referred to as Africa’s last colony, has been illegally occupied across much of its inland area and part of its coast since 1975. A commitment by the United Nations organization to deliver a self-determination referendum to the Saharawi people who had been the sole, exclusive occupants of the territory, has been stalled as a result of continuing annexation efforts including resources development purportedly done to generate economic benefits for the territory. Four senior level international and national courts have confirmed an occupying Morocco to be without right or title to the territory. “What this means”, noted Khadad, “is that the rule of international law holds that the occupying state is unable to offer exploration licenses and, even less, hold out any rights to petroleum that could be recovered from the seabed.”
In a December 2016 judgment the Court of Justice of the European Union confirmed that Western Sahara is not a part of Morocco and that the kingdom is unable to exercise treaty authority over the territory in respect of trade matters.
A June 2017 judgment of South Africa’s High Court, concerning a shipment of phosphate rock exported seized after export from Western Sahara, concluded that:
“Morocco has no claim to sovereignty over Western Sahara ... Furthermore, it acquired the territory by force [and] we conclude that howsoever Morocco's presence in Western Sahara may be described, it does not exercise sovereignty over the territory".
(A copy of the decision in Saharawi Arab Democratic Republic and Another v Owner and Charterers of the MV 'NM Cherry Blossom' and Others [2017] ZAECPEHC 31 is available online at: <www.saflii.org/za/cases/ZAECPEHC/2017/31.html>.)
The 2017 and 2016 judgments follow one of the United Kingdom High Court in 2015 which confirmed the territorial status of Western Sahara as not being part of Morocco. A securities listing on the LSE, and related activity, faces the risk of precedent in the United Kingdom and by parallel and separate proceedings, in the Court of Justice of the European Union.
“There is no longer any speculation by the SADR government in its safeguarding of the sovereign resource rights of the Saharawi people that formal legal measures will be resorted to in the face of financial activity to capitalize the taking of our resources, and as against activities as such. International law is clear about such matters and we will continue to employ it in the face of a universally derided, illegal occupation”, observed Khadad.
# # #
For additional information and media contact:
Mr. Kamal Fadel
Saharawi Republic representative for Australia and New Zealand
Senior executive of the SADR Petroleum & Mining Authority
T: + 61 2 92 65 82 58
