Somalia invites energy companies to explore oil and gas

oil-AFSomalia’s oil deposit amounts to 110bn barrels, according to report published by Heritage Institute for Policy Studies. (Image source: green.lime/Flickr)Somalia has invited Soma Oil and Gas, ExxonMobil, Royal Dutch Shell, BP and Chevron to explore oil and gas resources in the country

According to UK-based Soma Oil and Gas, it has completed an onshore and offshore seismic survey in Mogadishu, the capital of Somalia. The government in Mogadishu said it would reward the company for carrying out the seismic survey with licences to explore for oil.

The African Union-backed government of the war-torn country said that the Horn of Africa would be the next focus for the energy industry. Companies like Royal Dutch Shell and ExxonMobil have been encouraged to reactivate dormant contracts to explore more oil and gas resources in the region, the government stated.

Soma Oil and Gas CEO Bob Sheppard said, “The government has recognised that they need to stimulate exploration. They need to stimulate the creation of a hydrocarbon regime because they are in a prospective area.”

Sheppard noted that the region's geology looks positive.

“The analogous area would be the northwest coast of Madagascar, which has plenty of oil resources," he added.

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