A lawyer for Soma Oil warned a court decision against the company’s request for an inquiry could result in “death to the company”.
Soma Oil found itself at the centre of a Serious Fraud Office (SFO) investigation after leaked UN documents alleged the firm made payments, which were “improper, unlawful and give rise to a conflict of interest”, to the Somali government.
The operator later asked a UK court to carry out a judicial review into the SFO. Its bid to end the investigation failed last week after a court ruled against their request. The company now faces missed contract deadlines, including its East African oil project. Soma was due to sign critical development contracts with the Somali government this week.
Soma, which is chaired by former Conservative Party leader Lord Howard, enlisted the help of shareholders to cover costs in recent months, including its $15million plan for 2016.
Winter Sky Investments has invested more than $50million into Soma’s East African project.
A Soma company spokesperson told the Sunday Telegraph it had “fully and openly co-operated the delays by the SFO.”
“Unfortunately the delays by the SFO to complete its investigation in a timely manner continue to materially impact Soma’s costs and business opportunities,” he added.
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