On Friday 13 June 2014, His Excellency Minister Daud Mohamed Omar, Minister of Petroleum and Mineral Resources of the Federal Republic of Somalia visited the headquarters of Shell in The Hague, The Netherlands. This is the first meeting between Minister Omar and Shell.

The Minister was in The Hague at the invite of Shell EP Somalia B.V. (“Shell”) who was awarded a concession for five blocks (Blocks M3-M7)* offshore Somalia in 1988. Mobil Exploration Somalia Inc. (“ExxonMobil”) subsequently joined the concession as a 50% joint venture partner. The parties have now begun discussions with the Ministry with the aim to convert the existing concession (which has been under force majeure since 1990) to a Production Sharing Agreement (PSA) as called for by the 2008 Petroleum Law.

The Federal Republic of Somalia has welcomed these initial engagements with Shell and ExxonMobil. The joint venture partners will continue discussions on areas of cooperation and the potential for exploring and developing hydrocarbon resources offshore Somalia. It is the parties’ hope that these discussions will help pave the way towards the long term development of a sustainable oil and gas industry for Somalia, a key building block in the rebuilding of its economy.

Minister Daud Mohamed Omar said: “We are encouraged by the work that Shell and ExxonMobil are doing, and are keen to discuss the way forward on their offshore blocks. It is our hope that the joint venture will soon be able to start exploration and development activities in the country, and we believe these discussions are the first step in this process. I would hope to welcome Shell and ExxonMobil to visit Mogadishu in the near future.”

Shell Vice President of Exploration for Sub Saharan Africa, Alastair Milne said: “I am pleased that the Federal Government of Somalia clearly recognises the rights of existing concession holders such as Shell and ExxonMobil, and I am delighted that progress is being made in relation to our acreage.”

ENDS

For further information contact:

Ministry of Petroleum & Mineral Resources,
Federal Government of Somalia
+25261-5522003
+25261-8474935

Shell Media Enquiries
+44 (0) 207 934 5550