Shell-Exxon JV takes step towards exploration and development offshore Somalia
A joint venture of Shell and ExxonMobil has reached an agreement with the Ministry of Petroleum and Mineral Resources of the Federal Republic of Somalia on an initial roadmap for exploration and development of certain hydrocarbon blocks offshore Somalia.
The roadmap enables the conversion of prior agreed concessions into production sharing agreements under the provisions of the petroleum law, building on an agreement signed in June 2019 after which the Shell-ExxonMobil JV paid US$1.7 million for surface rentals and other incurred obligations on offshore blocks, the ministry said.
In adherence to the Revenue Sharing Agreement, this payment was re-distributed among Somalia’s Member States for independent allocation.
The Ministry said it is “committed to creating an attractive fiscal and regulatory environment for Independent and International oil companies to enter offshore Somalia.”
Details on timing or next steps were not reported.
Source: Oil & Gas Journal