Shell/Exxon joint venture agrees initial roadmap for exploration and development of offshore Somalia
28 January 2020 Mogadishu, Somalia. The Ministry of Petroleum and Mineral Resources of
the Federal Republic of Somalia, today announces it has agreed an initial roadmap with the
Shell/Exxon joint venture focused on the next steps towards the exploration and
development of certain offshore hydrocarbon blocks.
This co-created roadmap will enable the conversion of prior agreed concessions into
Production Sharing Agreements (“PSAs”) under the provisions of the Petroleum Law. This
builds on the agreement signed in Amsterdam on 21 June 2019 which settled historical issues
relating to surface rentals and other incurred obligations on Offshore Blocks.
The Ministry is committed to creating an attractive fiscal and regulatory environment for
International Oil Investors (“IOCs”) to enter offshore Somalia. The revenues from any potential
resource will be shared and invested for the benefit of all Somali people.
Commenting on the initial roadmap, His Excellency Abdirashid Mohamed Ahmed, The
Minister of Petroleum & Mineral Resources, said: “I am delighted we have agreed an initial
roadmap with the Shell/Exxon joint venture. This gives us confidence in ability to further
explore any offshore hydrocarbon potential. 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.”
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