Rich in hydrocarbons and possessing a favorable geological structure, Somalia holds huge opportunities for investors looking to enter the East African market, said the country\u2019s Minister of Petroleum and Mineral Resources, Hon. Abdirashid Mohamed Ahmed at the Africa Oil & Power conference.<\/p>\n\n\n\n
\u201cNowhere is the contribution that the energy industry can make to civil society and economic development greater than in Somalia,\u201d he said. Noting that the sector has the potential to greatly enhance stability and economic development.<\/p>\n\n\n\n
On its path to transforming its petroleum industry and attract the attention of new investors, Somalia has made significant progress in recent years. This year, the country passed a new petroleum law which enabled it to make progress in exploration and development, and attract interest from oil and gas majors ExxonMobil and Shell.<\/p>\n\n\n\n
Eager to demonstrate to the world that Somalia is open for business, the minister said the country is currently on an international roadshow which will showcase the exploration opportunities available in its hydrocarbons sector.<\/p>\n\n\n\n
\u201cThis includes seismic data recently shot by Spectrum covering 20,185 km. The current licensing round is in respect of up to 15 blocks, covering a total area of approximately 7,500 square miles. The bid round will follow shortly after to ensure that the world knows: Somalia is open for business.\u201d<\/p>\n\n\n\n
Minister Ahmed also spoke on the attractiveness of the country\u2019s production sharing agreement (PSA) model for offshore oil exploration and development \u2013 regarding it as being amongst the most attractive to investors in the frontier basins. The PSA provides a highly attractive regulatory fiscal framework that is both competitive and equitable for both the people of Somalia and international oil companies (IOC).<\/p>\n\n\n\n
\u201cBy equitably linking of royalties and share of revenue closely to the price of oil, the Somalia PSA ensures that IOCs can recover their up-front development costs and earn a fair share profit even if oil prices fall, whilst maximizing the profit going to the Somalian people,\u201d the minister explained.<\/p>\n\n\n\n
\u201cMy ministry worked successfully with the six federal member states to develop an equitable and transparent framework for development, focused on the greater good of Somalia and all its people, whilst ensuring that we are highly competitive internationally to attract investment by delivering returns that are consistent with the risks and rewards of developing our off-shore industry,\u201d said the minister<\/p>\n","protected":false},"excerpt":{"rendered":"
Somalia, Oil, Gas, Hydrocarbons, Africa Oil & Power, ExxonMobil, Shell, Spectrum,<\/p>\n","protected":false},"author":24,"featured_media":7071,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-7798","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p5JWkQ-21M","jetpack-related-posts":[{"id":7070,"url":"https:\/\/www.oilnewskenya.com\/index.php\/somalia-implement-oil-mining-framework\/","url_meta":{"origin":7798,"position":0},"title":"Somalia to Implement Oil, Mining Framework","author":"","date":"June 18, 2018","format":false,"excerpt":"The Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia has drafted regulations to manage the country\u2019s petroleum and mineral resources sectors, especially in regard to ownership and revenue sharing. The agreement was made by the federal government and the federal member states of the National Security\u2026","rel":"","context":"In "Top News"","block_context":{"text":"Top News","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/top-news\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2018\/06\/Somalia-oil-and-gas.jpg?fit=900%2C603&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":8206,"url":"https:\/\/www.oilnewskenya.com\/index.php\/somalia-launches-first-offshore-licensing-round\/","url_meta":{"origin":7798,"position":1},"title":"Somalia Launches First Offshore Licensing Round","author":"","date":"May 18, 2020","format":false,"excerpt":"The Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia announces the launching of Somalia\u2019s first offshore licensing round. Due to the spread of the global pandemic, COVID \u2013 19, and resulting restrictions, the Ministry decided to launch the licensing round virtually. The 2020 Somali licensing round\u2026","rel":"","context":"In "Eastern Africa"","block_context":{"text":"Eastern Africa","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/eastern-africa\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/somalia-seismic.jpg?fit=654%2C422&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/somalia-seismic.jpg?fit=654%2C422&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2020\/02\/somalia-seismic.jpg?fit=654%2C422&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":6503,"url":"https:\/\/www.oilnewskenya.com\/index.php\/somalia-petroleum-ministry-denies-links-oil-gas-summit-set-march-nairobi\/","url_meta":{"origin":7798,"position":2},"title":"Somalia Petroleum Ministry Denies Links To Oil Gas Summit Set for March in Nairobi","author":"","date":"November 8, 2017","format":false,"excerpt":"The Somalia Ministry of Petroleum and Mineral Resources has denied it has endorsed the Somalia Oil, Gas & Mining 2018 Summit which is planned to be held in Nairobi in March 2018 with the intention of boosting the long term development of the Oil, Gas and Mining sectors according to\u2026","rel":"","context":"In "Events"","block_context":{"text":"Events","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/events\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2017\/11\/Somalia-Oil-Gas-Mining-Summit-2018.jpg?fit=524%2C274&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":11880,"url":"https:\/\/www.oilnewskenya.com\/index.php\/somalia-coastline-exploration-signs-seven-production-sharing-agreements\/","url_meta":{"origin":7798,"position":3},"title":"SOMALIA: Coastline Exploration Signs Seven PSA’s Amid Rejection from President and PM","author":"","date":"February 21, 2022","format":false,"excerpt":"Coastline Exploration has signed seven Production Sharing Agreements (PSAs) covering offshore, deep-water blocks of the Federal Republic of\u00a0Somalia. These PSAs enable Coastline to proceed with plans to explore for oil and gas on the many prospects and leads identified in these offshore blocks. The announcement was confirmed by Somalia's Minister\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/02\/Somalia-licensing-round.png?fit=601%2C390&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/02\/Somalia-licensing-round.png?fit=601%2C390&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/02\/Somalia-licensing-round.png?fit=601%2C390&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":15490,"url":"https:\/\/www.oilnewskenya.com\/index.php\/somalia-turkiye-to-begin-offshore-drilling-at-the-horn-of-africa\/","url_meta":{"origin":7798,"position":4},"title":"SOMALIA: T\u00fcrkiye to Begin Offshore Drilling at the Horn of Africa","author":"","date":"January 7, 2026","format":false,"excerpt":"T\u00fcrkiye is set to begin offshore drilling operations in Somalia in a move that could mark a turning point for the country\u2019s upstream oil and gas sector. The development follows the successful conclusion of a three-day Technical Committee Meeting between the Somali Petroleum Authority (SPA) and Turkish Petroleum Company (TPAO)\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/01\/Turkey-Somalia.png?fit=760%2C500&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/01\/Turkey-Somalia.png?fit=760%2C500&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/01\/Turkey-Somalia.png?fit=760%2C500&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2026\/01\/Turkey-Somalia.png?fit=760%2C500&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":12587,"url":"https:\/\/www.oilnewskenya.com\/index.php\/somalia-new-minister-for-petroleum-mineral-resources-takes-office\/","url_meta":{"origin":7798,"position":5},"title":"SOMALIA: New Minister for Petroleum & Mineral Resources Takes Office","author":"","date":"August 23, 2022","format":false,"excerpt":"The minister of petrol and mining of the Federal Government of Somalia has taken over his position. The deputy prime minister of the Federal Government of Somalia Mr. Salah Jaamac has handed over the new minister Abdirisaaq Omar Maxamed and the former minister of the ministry Mr. Abdirashid Maxamed Ahmed.\u2026","rel":"","context":"In "Countries"","block_context":{"text":"Countries","link":"https:\/\/www.oilnewskenya.com\/index.php\/category\/countries\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/08\/Somalia-Ministry.jpg?fit=960%2C640&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/08\/Somalia-Ministry.jpg?fit=960%2C640&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/08\/Somalia-Ministry.jpg?fit=960%2C640&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/www.oilnewskenya.com\/wp-content\/uploads\/2022\/08\/Somalia-Ministry.jpg?fit=960%2C640&ssl=1&resize=700%2C400 2x"},"classes":[]}],"jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"_links":{"self":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/comments?post=7798"}],"version-history":[{"count":1,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7798\/revisions"}],"predecessor-version":[{"id":7799,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/posts\/7798\/revisions\/7799"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media\/7071"}],"wp:attachment":[{"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/media?parent=7798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/categories?post=7798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oilnewskenya.com\/index.php\/wp-json\/wp\/v2\/tags?post=7798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}