This co-created roadmap will enable the conversion of prior agreed concessions into production sharing agreements (PSAs) under the provisions of Somalia's Petroleum Law. This builds on the agreement signed in Amsterdam, the Netherlands, on 21 June 2019 which led to the receipt of US$1.7 million from the Shell/Exxon JV from historical surface rentals and other incurred obligations on offshore blocks. In adherence to the revenue sharing agreement, this payment was re-distributed among Somalia’s member states for independent allocation.
Commenting on the initial roadmap, Abdirashid Mohamed Ahmed, The Minister of Petroleum & Mineral Resources, said: “I am delighted we have agreed on an initial roadmap with the Shell/Exxon joint venture. 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.”
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/03032020/somalia-and-shell-exxon-jv-agree-roadmap-for-offshore-development/