Somalia has signed an agreement with Shell and Exxon that will see the two corporations re-enter the country to conduct offshore exploration.
The initial roadmap they signed offers an opportunity for creating a joint venture.
According to the Ministry of Petroleum and Mineral Resources, the agreement allows for conversion of previous concessions into new PSAs.
Furthermore, the ministry says the initial roadmap is in line to the Petroleum Law, which the country recently ratified.
In June 2019, Somalia received $1.7 million that Shell and ExxonMobil paid to offset outstanding bills related to the historic concessions made on the country’s offshore areas.
Somalia then redistributed the cash among its states, as proof that it adheres to the country’s revenue-sharing agreement.
The minister in charge of the Petroleum and Mineral Resources docket said, “We are confident in our ability to explore our offshore exploration capabilities.”
“The agreement reaffirms our commitment to explore our offshore hydrocarbon capacity further. Our long solid relationship with Shell and Exxon proves we can rebuild our economy.”
Somalia ratified the Petroleum Law on February 8, 2020. Through it, nothing prevents the country from opening new licensing round.