Somalia’s Ministry of Petroleum and Mineral Resources has launched its first offshore licensing round.
Bids will be considered on 7 blocks which include Blocks 152, 153, 164, 165, 177, 178, and 204. These are estimated to be among the most prospective areas in Somalia. Bids can be placed from Aug. 4, 2020 to Mar. 12, 2021.
Somali’s Petroleum Law was completed by legislative process in February. A revenue sharing agreement in the law outlines how future revenues will be shared between the federal government, members states, and local communities. The agreement was tested with first revenues generated from rental payments from Shell and ExxonMobil.
Due to the spread of COVID-19 and resulting restrictions, the Ministry decided to launch the licensing round virtually.