Somalia’s Ministry of Petroleum and Mineral Resources gave the green light to Shell and ExxonMobil to explore and develop potential offshore oil and gas reserves in its territory.
Specifically, Somalia on an initial roadmap with the two companies, followed by the Somali President Mohamed Abdullahi Farmajo, who signed petroleum legislation into law to help open up a new frontier market in Africa as the strife-torn country hopes new petroleum finds will help transform its economy.
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Also, according to seismic data there is a possibility of significant oil reserves offshore.
Concluding, Reuters reports that in October 2019, Shell and ExxonMobil cooperated on five offshore blocks in Somalia prior to the toppling of dictator Mohamed Siad Barre in the early 1990s, agreed to pay the government $1.7 million for historic leasing of the blocks.