Somalia: Shell/Exxon agreement

Following the passing of a new petroleum law in early February, the Ministry of Petroleum and Mineral Resources said on 2 March it had agreed an initial roadmap to convert pre-1991 offshore concessions owned by a Shell/ExxonMobil joint venture into production-sharing agreements.The agreement is the next step towards the planned licensing of oil and gas exploration off the coast of Somalia. Officials hope that as well as indicating the commitment of the majors to the country, it raises the likelihood that other IOCs will enter the market.