H.E. Abdirashid Mohamed Ahmed, Minister of Petroleum & Mineral Resources, who will broadcast live tomorrow with Frontier LIVE, plans to release details of the tender protocol and new geological data ahead of their licensing round. This session is interactive (not pre-recorded). Join us to get your questions directly to the Minister on Somalia's First Offshore Licensing Round. 

Minister of Petroleum & Mineral Resources, H.E. Abdirashid Mohamed Ahmed, says "Somalia is open for business, big time."

Frontier LIVE Africa Exploration in Focus: Somalia on Thursday, 2 July 2020 at 14:00 BST: 

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Somalia's First Offshore Licensing Round

Since the inauguration of the Federal Government of Somalia in 2012, the country has made significant steps to boost hydrocarbon exploration activity, including commissioning the acquisition of regional seismic data, the passing of a new petroleum law and launching its first offshore licensing round.

The Ratification of Somalia’s Petroleum Law

Earlier this year, on the 8th February 2020, His Excellency - President of Somalia Mohamed Abdullahi Farmajo, approved the country of Somalia’s Petroleum Law. The ratification of Somalia’s Petroleum Law represents a landmark moment for the future possibilities and development of the country’s oil and gas resources and indeed East Africa’s oil frontier. The law includes a revenue-sharing agreement, ensuring production revenues will be distributed among the Somali people through the Federal States, and provisions that Somalia’s oil and gas will belong to the Somali people. This will assure that present and future Somali generations benefit from the country’s vast hydrocarbon potential.

Incorporated within the law is the agreement to establish The Somali National Oil Company (SONOC), a government-controlled organisation that will be responsible for the country’s hydrocarbon production operations. The formation of the Somali Petroleum Authority has also been authorised, a regulatory body that will be responsible for overseeing all oil and gas exploration and production activity in the country.

It therefore comes as no surprise that there is so much enthusiasm surrounding Somalia oil and gas exploration potential, as the ratification of the petroleum law, coupled with over 40,000km of 2D seismic data, sets high hopes for Somalia’s first offshore licensing round.

Somalia’s 2020 Offshore Licensing Round

On 12th May 2020, The Ministry of Petroleum and Mineral Resources of the Federal Government of Somalia announced the official launch of Somalia’s first offshore oil and gas licensing round. Despite the impact of COVID-19, the launch went ahead as the Ministry made the decision to go virtual. 

7 blocks are on offer in Somalia’s offshore licensing round, spanning the Obbia, Coriole and Juba-Lamu Basins. Analysis of subsurface data positions these blocks to be among the most prospective offshore areas for hydrocarbon E&P in Somalia. This licensing round will open on 4th of August 2020 and will be closing on 12th March 2021.

At the launch of the licensing round, H.E. Abdirashid Mohamed Ahmed, Minister of Petroleum and Mineral Resources for the Federal Republic of Somalia, said:

“The opportunities for the international exploration and development majors are enormous. Somalia is committed to attracting investment and promoting partnership and business in all segments of the oil and gas industry value chain. This event is the starting point to allow the Somali Government to better showcase the vision that our country has for our petroleum and gas industry to potential foreign investors. “Somalia is opening for business big time”.

Seismic Data Coverage Offshore Somalia

Early post-rift Late Jurassic candidate source rock identified, based on basin evolution history and expected seismic character. Source: geoexpro.com / TGS

TGS currently offer the only seismic data that covers the 7 offshore blocks of the upcoming licensing round and have an exclusive agreement with the Somali government to market this data to interested parties. TGS’s 20,000 km long offset 2D seismic data set, acquired offshore Somalia in 2015, was used to better understand the presence and distribution of regional source rocks and their maturity in order to determine the region’s prospectivity. Although no well control exists to confirm the maturity or presence of these source rocks, models based on detailed interpretations of seismic character and attribute processing suggest the presence of regional source rocks, which fall within the oil window and are capable of charging giant nearby traps (also identified in seismic).

KeyFacts Energy: Somalia country page