Upstream oil and gas production and operations is the exploration, field development and production of raw petroleum materials. Companies involved in this segment of the industry are exploration and production companies who have the expertise, technology and responsibility to identify and prioritise the safe development of resources. Upstream also involves related services such as rig operations, feasibility studies, machinery rental, and extraction of chemical supply.

Any exploration and production company interested in any activity under the responsibility of the Somali Petroleum Authority must go through the relevant processes, normally through a licensing round. A licensing round is a competitive bid process whereby an organisation or business can bid for the rights to certain areas or blocks for a set period of time.