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Somalia launches first offshore licensing round

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Oilfield Technology,

The Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia has announced the launching of the country’s first offshore licensing round.

The 2020 Somali licensing round – launched virtually due to Covid-19 – features up to 7 blocks up for bidding which are estimated to be among the most prospective areas for hydrocarbon explorations and production in Somalia. This licensing round will open on 4 August 2020 and will be closing on 12 March 2021.

The country's Petroleum Law, passed earlier this year, includes a revenue sharing agreement 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. This agreement has now been ‘road-tested’ with the first revenues, which were recently generated from rental payments from Shell and ExxonMobil.

Abdirashid Mohamed Ahmed, Minister of Petroleum & 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."

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