{Somalia’s central government is in talks with some of the world’s biggest energy companies in an attempt to restart oil exploration in the war-torn country, an adviser to the government said Monday.}
A number of big oil companies signed concessions in Somalia before the country descended into civil war in 1991. The instability prompted the companies to suspend onshore and offshore exploration; they say their contracts remain valid since it has been impossible to conduct activity in the country.
Somalia last year transitioned to its first permanent government in years, and the internationally recognized central government is trying to rebuild Somalia’s economy, with oil as a cornerstone.
Recent, large oil and natural gas discoveries elsewhere in East Africa make Somalia attractive for oil explorers. But so far, no large companies have committed to returning to the country, which is struggling to contain terrorist group al-Shabaab and is plagued by tensions between its central and regional governments.
Shell said talks with the government of Somalia “are of a preliminary and exploratory nature. Any future progress would be dependent on advancing discussions as well as progress on the security and operating environment in and surrounding Somalia.”
BP “had some discussions” about Somalia concessions, a spokesman said. Eni said its chief executive met with Somalia’s president last month. Exxon and Conoco declined to comment. Chevron spokespeople weren’t immediately able to comment.
A number of small companies have signed oil-exploration deals with regional authorities in Somalia, raising tensions with the central government. The only company to sign an agreement with the central government is private startup Soma Oil & Gas Ltd., which is conducting early-stage data collection, its chief executive, Robert Sheppard, said in an interview last month.
WSJ
Leave a Reply