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A company headed by former UK Conservative Party chief Michael Howard has won substantial rights to Somali exploration acreage in exchange for funding seismic acquisition. With delays to a promised new oil law, and no sign of a planned licensing round, conspiracy theories abound, but Soma argues that the deal is exactly what the country needs. “The government aims to accelerate the pace of exploration and development activity and open up the country’s hydrocarbons industry,” said a company spokesman. “Soma’s work will demonstrate to the IOCs that it is possible operationally to work in the country and thereby encourage the IOCs to recommence their work programmes.”

A company led by former UK Conservative Party leader Lord Howard has signed an agreement to help develop Somalia’s hydrocarbons sector. In return for exploration rights for prospective areas, Soma Oil and Gas Exploration will acquire new seismic and reprocess historic seismic, with a view to creating a data room. The company was set up this year with Howard, who signed the agreement in Mogadishu, as non-executive chairman and BP man Robert Sheppard chief executive.

Nine months of improved security has engendered a cautious sense of optimism, but oil and gas exploration plans face major obstacles, writes William Macpherson. Somalia’s fortunes seem to have improved since the election last year of President Hassan Sheikh Mohamud, a former activist and political outsider. Islamic militants of Al Shabaab, who have controlled large swathes of the country for several years, have suffered a series of military setbacks.

The government of Somaliland has announced a production sharing contract (PSC) with Norway’s DNO International for onshore Block SL18. The PSC was signed by Somaliland president Ahmed Mohamoud Silanyo and DNO International executive chairman Bijan Mossavar-Rahmani. DNO has initiated studies on the 12,000km2 block ahead of a seismic programme planned for 2014. Genel Energy and Ophir Energy already have acreage in the self-declared republic, while DNO has acreage across the Gulf of Aden in Yemen.

Range Resources has proposed an all-share merger with Frank Timis’ International Petroleum to create a company focused on Trinidad, Russia and onshore Africa. The merger would offer three Range ordinary shares for every two International Petroleum ordinary shares, valuing International Petroleum at some A$105m (US$108m). International Petroleum has assets in Russia, Kazakhstan, and Niger, while Range has assets in Puntland and a main focus in Trinidad and Texas.

Former BP boss Tony Hayward’s Genel Energy has agreed to farm into Jacka Resources’ Odewayne Block in the breakaway Republic of Somaliland, taking a 50% stake. Genel said it would become operator of the block and will carry Jacka and its partner Petrosoma through 1,500km of 2D seismic and the drilling of an exploration well, at a cost of around $50m.

Somalia’s new government is aiming for a quick resolution of its oil licensing issues so that it can kick-start investment, and hopes to lure back diaspora Somalis with relevant skills. Ministry of Water, Energy, Petroleum and Mineral Resources senior adviser Abdullahi Haider told Global Pacific & Partners’ Africa Independents Forum that when appointed, one of the new minister’s first tasks will be to send letters of notification to the companies that held licences before the civil war, inviting them to return to their acreage

The new federal government, due to be named any day, plans to invite companies that held acreage before the country’s civil war to return and resume exploration. While this may be good news for development, it could cause confusion for acreage licensed by the local authorities in Somaliland and Puntland, writes Thalia Griffiths.

Operator Horn Petroleum is plugging and abandoning its Shabeel North-1 well after a drill stem test of the Upper Cretaceous Jesomma sands produced only water.

Kenya has issued licences for seven of its remaining 12 open exploration blocks as Tullow Oil announces more positive results from the Ngamia well. Italy’s Eni said it had been awarded production-sharing contracts (PSCs) for new blocks L21, L23 and L24 in the deep and ultra-deep waters of the Lamu Basin, while Total has taken L22 (AE 223/15).

Following promising results from its first well in the semi-autonomous republic of Puntland, Canada’s Horn Petroleum has begun drilling the Shabeel North well on the Dharoor Valley Block.

There is optimism about Puntland’s oil prospects following news that operator Horn Petroleum plans to test a 12-20 metre pay zone in the Shabeel-1 well on the Dharoor Valley Block, and has moved the rig to drill at Shabeel North

The government of the breakaway republic of Somaliland has given ministerial approval for Jacka Resources to farm into Petrosoma’s Odewayne Block, taking 50%

Jacka Resources’ arrival as Somaliland’s first new IOC entrant in four years reflects renewed interest in the region’s geology, which could be further spurred by drill-bit success in neighbouring Puntland

Range Resources has entered into a memorandum of understanding (MoU) with the autonomous Republic of Puntland government for the Nugaal Basin Offshore Block in the Indian Ocean