The initial roadmap created by Royal Dutch Shell and ExxonMobil to explore and develop potential offshore oil and gas reserves has been approved by the Somalian government on Monday.
“I am delighted we have agreed on an initial roadmap with the Shell/ExxonMobil 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.” Abdirashid Mohamed Ahmed, The Minister of Petroleum & Mineral Resources said.
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 to pay the government $1.7 million for historic leasing and other incurred obligations of the five offshore blocks in Somalia owned by Shell/Exxon Mobil JV.
Last month, Somalia’s President Mohamed Abdullahi Farmajo signed petroleum legislation into law to help open up a new frontier market in Africa as the strife-torn country hopes new petroleum finds will help transform its economy.