Somalia Considering Opening Up Oil Exploration To Foreign Firms

Aug. 8, 2007
Several foreign oil companies are seeking permission to resume the search for oil.

The Somali parliament is debating a new oil law that would pave the way for the government to offer exploration licenses to foreign firms. Somalia's ambassador to Kenya Mohamed Ali Nur said the law would also see the formation of a national oil firm in the country, which is believed to have hydrocarbon reserves.

"The law is going to be debated today or tomorrow ... I believe that after the debate it will be passed," Nur said.

He denied a report last month in The Financial Times newspaper that Somalia had struck oil exploration contracts with Chinese oil firms.

The Horn of Africa nation has attracted several foreign oil companies, which are seeking permission to resume the search for oil. Somalia sank into chaos in 1991 when dictator Mohamed Siad Barre was ousted. Before then, geological exploration had suggested that Somalia might have significant oil and natural gas, given its proximity to the oil-rich Red Sea and Gulf of Aden. In the final years of Barre's rule, the northern Puntland region was carved into blocs for American oil giants: Amoco, Chevron, Conoco and Phillips -- the two later merged into Conoco-Phillips. But serious exploration was prevented when civil war engulfed the whole nation.

Copyright Agence France-Presse, 2007

Popular Sponsored Recommendations

Learn How Manufacturers like 3M Cater to Digital Buyers to Increase Sales

Aug. 13, 2023
In this article, you'll learn how manufacturers can balance educating and guiding their buyers through their complex buying process with a digital first approach to product discovery...

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

3 Best Practices to Create a Product-Centric Competitive Advantage with PRO.FILE PLM

Jan. 25, 2024
Gain insight on best practices and strategies you need to accelerate engineering change management and reduce time to market. Register now for your opportunity to accelerate your...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!