Somalia’s petroleum ministry said it has agreed on an initial roadmap with Shell and ExxonMobil joint venture for exploration and development of offshore Somalia.
Abdirashid Mohamed Ahmed, Minister of Petroleum and Mineral Resources, said the roadmap was focused on converting concessions struck many years ago into new production-sharing agreements in accordance with the recently signed Petroleum Law.
“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,” Ahmed said in a statement issued on Tuesday evening.
He said the co-created roadmap builds on the agreement signed in Amsterdam on June 21, 2019, which led to the receipt of 1.7 million U.S. dollars from the joint venture from historical surface rentals and other incurred obligations on Offshore Blocks.
“In adherence to the revenue sharing agreement, this payment was re-distributed among Somalia’s Member States for independent allocation. The processing and distribution of this sum among the member states demonstrate the strength of Somalia’s Revenue Sharing Agreement and provides a model for future treatment of funds arising from petroleum exploration and production,” said Ahmed.
He said the ministry is committed to creating an attractive fiscal and regulatory environment for independent and international oil companies to enter offshore Somalia.
“The revenues from any potential resource will be shared and invested for the benefit of all Somali people,” Ahmed said.
The latest move came after a petroleum legislation was signed into law to help transform the Somalia economy.