Royal Dutch Shell and Exxon Mobil are searching to re-enter the sector in Somalia in advance of an oil block bid spherical using area later this year, the country’s oil ministry reported in a assertion.
Shell and Exxon Mobil experienced a joint enterprise there prior to the toppling of dictator Mohamed Siad Barre in the early 1990s.
Somalia has been mired in insecurity since Barre left and is battling Islamist group al Shabaab that commonly carries out bombings in the cash Mogadishu and somewhere else in the region.
The state at this time does not create any oil but production could renovate the economy as early stage seismic information has revealed there could be considerable oil reserves offshore.
“(An) agreement was signed in Amsterdam on June 21st 2019 and settles difficulties relating to floor rentals and other incurred obligations on offshore blocks,” the ministry stated.
The functions have also agreed a system to change their old contracts in line with the a new petroleum monthly bill that was handed earlier this calendar year.
Somalia hopes to allocate 15 offshore blocks with a likely bid day program for November. A roadshow is staying organised in Houston, Texas in late September or early Oct.
Somalia has also handed a profits sharing agreement, splitting revenue with oil making states but has not still made the decision on the share the govt will retain in the blocks it awards.