Afrique Jet: International oil firms set eyes on Somalia

Somalia, slowly recovering from over two decades of anarchy, has continued to face substantial above-ground risks to developing its hydrocarbon sector, including legal uncertainty, political instability and piracy, according to a new study by Business Monitor International (BMI).

“However, with upstream firms increasingly eager to capitalise on East Africa's hydrocarbon potential, if the soon-to-be-undertaken surveys by UK-based Soma Oil and Gas produce favourable results, this may accelerate exploration in Somalia regardless of the ongoing political instability,” BMI has noted in its analysis of risks related to oil exploration in the Horn of Africa country.

While Somalia's hydrocarbon development will remain vulnerable to substantial above-ground risks, a recent deal between the government and Soma Oil and Gas increases the chances of an uptick in upstream activity over the coming years.” MORE