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German-based microgrid technology provider Dhybrid and Berbera Electricity Company (BEC) have announced the port city is now powered by a recently commissioned city-wide power grid. The project includes two solar PV plants of 8MW total, a 2MWh lithium-ion power storage system and three diesel generators.

Reports emerged in early May that Somalia and Kenya were restoring diplomatic relations almost six months after severing ties due to tensions over shared oil and gas deposits.

Somalia’s nascent hydrocarbons sector is emerging as a key battleground in President Mohamed Abdullahi Mohamed’s conflict with rival politicians over delayed elections. The licensing round closing date has been pushed back amid uncertainty over the government’s mandate, writes James Gavin

AIM-listed Sterling Energy, whose sole remaining asset is the Odewayne Block in Somaliland, plus $42.9m in cash, has named Tullow’s Paul McDade and Ian Cloke to its board as it seeks to pick up West African producing assets.

Preparations to award exploration licences in early 2021 are facing disruption as political tensions resurface ahead of presidential elections set for 8 February. Disputes between the federal government and the regions are far from resolved, and new oil institutions may not be able to withstand political realities, writes James Gavin.  

Somalia hopes that its current licensing round means oil exploration can get under way by Q4 2021.A licensing round offering seven blocks opened in May and is due to close on 12 March. Somali Petroleum Authority (SPA). chairman and chief executive Ibrahim Ali Hussein told the Africa Oil Week virtual conference on 8 October that he expected block awards to be made in early April and companies to mobilise immediately to launch exploration work. “By Q4 next year exploration will start,” he said.

The World Bank Group (WBG) on 12 October released details of its $150m Electricity Sector Recovery Project in Somalia. The International Development Association grant is scheduled to be assessed by the board at the end of June 2021.

Beco, Somalia’s main electricity supplier, has announced the commissioning of an 8MWp solar PV plant in Mogadishu. The commissioning of the company’s second solar PV park, which currently provides electricity four hours a day, has already helped achieve its primary aim of cutting the cost of electricity in the Somali capital by reducing the use of diesel generators. According to Beco’s chief engineer, Mohamud Farah, the commissioning of the Mogadishu solar PV plant has seen the cost of power fall from $0.49 to $0.36/kWh.

Following the passing of the petroleum law in February, Somalia has announced a slimmed down licensing round offering seven offshore blocks. The blocks on offer are 152, 153, 164, 165, 177, 178 and 204 in the central offshore area. Somalia had previously announced the long- mooted bid round would include 15 blocks.The round is open for bidding from 4 August until 12 March 2021, the Ministry of Petroleum and Mineral Resources said.Terms are based on a model PSC.

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.

President Mohamed Abdullahi Farmajo has ratified Somalia’s long-awaited petroleum law, paving the way for licensing of exploration blocks. The law, which was approved by parliament in May 2019 includes a revenue-sharing agreement that provides for revenues from any eventual oil production to be distributed through the country’s federal states. It establishes the Somali National Oil Company as the state entity charged with participating in petroleum operations, as well as the Somali Petroleum Authority, which will act as a regulatory body overseeing oil and gas activity.

The International Court of Justice has postponed the start of public hearings in a case brought by Somalia in 2014 over its maritime border with Kenya. The hearings, which follow written submissions to the court last year, were due to take place from 9 to 13 September, but on 3 September Kenya asked for a 12-month postponement, citing the need to recruit a new defence team. The hearings will now be held from 4 to 8 November.

Genel Energy plans to farm down its 75% interest in the SL-10B and SL-13 blocks onshore Somaliland. In its H1 results on 6 August, Genel said interpretation of the 2018 2D seismic data together with continued basin analysis has led to the maturation of a prospects and leads inventory. “A number of potentially high impact exploration targets have been identified within play types directly analogous to the prolific Yemeni rift basins,” Genel said.

The International Court of Justice (ICJ) will hold public hearings from 9 to 13 September in The Hague in a case brought by Somalia in 2014 over its maritime border with Kenya. The hearings follow written submissions to the court last year. Kenya initially said the ICJ should not rule on the case, arguing that the court was a last resort and bilateral talks had not been exhausted. However, the court decided in February 2017 that it did have jurisdiction to adjudicate on the dispute, and that Somalia’s application was admissible.

The World Bank is seeking expressions of interest from consultants by 15 June to help draw up a Somali Electricity Act. The project aims to promote the introduction of market discipline to the power sector and to create a favourable investment climate for private sector participation.The project will be financed by the World Bank Group through the Somalia Unlocking Sectoral Investment Programme.