Somalia agrees on oil exploration roadmap with Shell/Exxon

Somalia has accepted an initial roadmap with a Shell/Exxon joint venture to explore and develop potential offshore oil and gas reserves.

Somali Minister of Petroleum and Mineral Resources Abdirashid Mohamed Ahmed on Monday welcomed the signing of the roadmap agreement.

“This gives us confidence in our ability to explore any offshore hydrocarbon potential further. We have a long relationship with the Shell/Exxon joint venture and look forward to this continuing as we seek to provide the building blocks we need to grow our economy,” he said

Minister said the roadmap was focused on converting concessions struck many years ago into new production-sharing agreements, in line with the recently ratified Petroleum Law.

According to the statement by the ministry, Shell and Exxon Mobil paid $1.7 million to Mogadishu in June 2019, covering their outstanding bills linked to their historic concessions on the offshore areas.

The ministry said the cash was distributed among Somalia’s states in line with the revenue-sharing agreement.

The ministry noted the dispersal demonstrated how future cash from hydrocarbons would be shared out.

The Petroleum Law was ratified on February 8, allowing Somalia to declare its new licence round open.

The country had held a show in London in February 2019 to flag its potential. This also triggered a renewed spat with Kenya, which is pursuing maritime claims against Somalia.