An American oil explorer has paid $7 million in signature bonus to the Federal Government of Somalia (FGS).
Coastline Exploration Ltd confirmed that it paid the signature bonus to the Somali government on October 21.
It paid the amount shortly after the company renegotiated the controversial oil exploration deal with the government of the East African nation.
The American firm first signed the oil exploration deal with Somalia in February 2022.
However, several senior government officials – including the then President Mohamed Abdullahi Farmaajo – denied knowledge of the deal.
The then Prime Minister Mohamed Hussein Roble said that the then petroleum and mineral resources minister had kept him in the dark.
Now, Somalia has renegotiated five issues and re-signed the deal with the US firm.
Oil exploration is now expected to commence in earnest, especially after the US firm paid the signature bonus.