Somalia signs oil contract with Norway’s Spectrum

Mogadishu, Sunday. Somalia has signed an oil exploration agreement with Norway’s Spectrum ASA, officials confirmed.

The Mogadishu ministry of Petroleum and Mineral resources signed the deal on Saturday.

The ministry outlined the terms of the agreement and the extent of the services to be rendered by the Norwegian firm.

“The facts that Somalia embarked on the task of exploring its oil potential is an indication that the Horn of Africa is the newest region with impending energy resources,” said the ministry in a press release.

The Petroleum and Mineral Resources minister, Mr Mohamed Mukhtar Ibrahim, expressed satisfaction in reaching an accord with Spectrum ASA.

He described the task to be undertaken as multi-client seismic survey.

According to the accord, Spectrum ASA will explore for oil in an aquatic territory extending 28,000km square.

he contractor will employ 2D seismic survey in marine territory sub-divided into blocks.

According to the ministerial information, the survey will cover a territory previously granted to The Royal Dutch Shell by the previous Somali government (which collapsed in 1991).

“The accord is meant to facilitate a wide range survey to uncover Somalia’s oil resources without the country paying for the exploration cost,” stated Mr Ibrahim.

He added: “It will enable the country to achieve vast geological information that will attract the attention of the world’s most prominent fuel exploitation companies.”

Speaking at the occasion, Somali Finance minister Mohamed Adan Fargeti, who is also the Chairman of Financial Governance Committee, applauded the manner in which the agreement was prepared

Prime Minister Omar Abdirashid Sharmarke witnessed the signing of the agreement.

“This accord is going to have multiple benefits for Somalia,” said the Prime Minister

“It will enhance the country to have better development plans,” he added. In 2013, Somalia signed a fuel exploration agreement with the UK based Soma Oil & Gas. (NMG)