Somalia has launched its first offshore licensing round for seven blocks
This licensing round will open on 4 August this year and will be closing on 12 March 2021.
According to the Ministry of Petroleum and Mineral Resources, Somalia has achieved significant milestones that will provide predictability, reliability and transparency to the oil and gas companies and investors who are willing to do business with the Somali Government.
Among those milestones are; the Petroleum Law that completed its legislative process earlier this year. The Revenue Sharing Agreement enshrined in The Petroleum Law which indicates how future revenues from the development of the industry will be shared between The Federal Government, the Federal Members States and their local communities.
And this agreement has now been ‘road-tested’ with the first revenues, which were recently generated from rental payments from Shell and Exonn. Moreover, Production Sharing Contract model is investor friendly, flexible and top quartile fiscal framework.
The Ministry assured that the process would be fair and transparent for everyone taking part in the licensing round, adding that the revenues generated from oil gas explorations will be used as the catalyst for a new dynamic, renewable and self-sustainable economy.
Abdirashid Mohamed Ahmed, the minister of petroleum and mineral resources, said, “The opportunities for the international exploration and development majors are enormous. Somalia is committed to attracting investment and promoting partnership and business in all segments of the oil and gas industry value chain. This event is the starting point to allow the Somali Government to better showcase the vision that our country has for our petroleum and gas industry to potential foreign investors.
