This archive report was first published on 30 June 2019.
On June 30, 2019, Royal Dutch Shell and Exxon Mobil expressed interest in returning to Somalia to explore oil opportunities ahead of a bid round later this year.
The two companies had a joint venture on five offshore blocks in Somalia prior to the toppling of dictator Mohamed Siad Barre in the early 1990s. However, the exploration and development of the five offshore blocks were suspended in 1990 due to a 'force majeure'.
Despite the instability in the country, Shell and Exxon Mobil have continued to accrue rentals to the government since then. The country currently does not produce any oil, but production could transform the economy as early stage seismic data has shown there could be significant oil reserves offshore.
According to the East African country's oil ministry, an agreement was signed on June 21, 2019, in Amsterdam, Netherlands, which settles issues relating to surface rentals and other incurred obligations on offshore blocks.
