ExxonMobil and Shell have entered into a $1.7 million joint venture partnership to explore and develop potential oil and gas reserves offshore Somalia.
“I am delighted we have agreed an initial roadmap with the Shell/Exxon joint venture. This gives us confidence in the ability to further explore any offshore hydrocarbon potential,” Minister of Petroleum and Mineral Resources, H.E. Abdirashid Mohamed Ahmed, said in a statement.
Last month, Somali President Mohamed Abdullahi Farmajo signed a new petroleum law into legislation, aimed at regulating and attracting major oil companies to invest in Somalia’s oil and gas acreage.
The new law provides a legal framework for Somalia and creates revenue sharing between the central government and states.
Currently, Somalia does not produce any oil, however, seismic data has revealed potential for substantial offshore oil reserves that could transform the country’s economy.