Shell/ExxonMobil joint venture in Somali agreement

Somalia’s Ministry of Petroleum and Mineral Resources reports that it has ‘reached a historic agreement’ with a Shell/ExxonMobil joint venture, which paves the way for the next stage in the development of the country’s natural resources following the passing of the new Petroleum Law by the Federal Parliament on 20 May 2019.

The agreement settles issues relating to surface rentals and other incurred obligations on offshore blocks that were previously under force majeure during the civil war.

Both parties have agreed that a common roadmap will be developed, enabling the conversion of prior agreed concessions into production sharing agreements (PSA) under the provisions of the Petroleum Law.