This archive report was first published on 18 May 2020.
On May 18, 2020, Somalia's Ministry of Petroleum and Mineral Resources announced the opening of the first round of bidding for oil exploration, despite criticism over the lack of sufficient law to manage the programme.
The programme, known as the Licensing Round Pre-Announcement Offshore, will target seven blocks in Galmudug state, Hirshabelle, South West, and Jubbaland, which are scattered along the country's 3,000 km coastline.
According to Mohamed Abdikadir Hilaal, Somalia's Deputy Minister for Petroleum and Mineral Resources, the bidding process will be transparent and take one year to complete.
However, critics argue that the timing of the bidding is suspicious, given the country's current challenges, including low global oil prices, the COVID-19 pandemic, and ongoing floods in several regions.
Mr. Ilyas Ali Hassan, the Chairman of the Natural Resources Committee of the Somali Senate, expressed concerns that Somalia may be short-changed at a time of low global oil prices and that the country should focus on more urgent matters.
On the other hand, analyst Mohamed Omar argued that Somalia must start auctioning its oil blocks to avoid being left behind in the transition to renewable energy.
