Thursday, January 24, 2019

Somalia Awakens As East Africa's Oil Province

The Scent of Oil amongst Gas

In the last decade several large Gas discoveries have been in East Africa, with up to 200 tcf of gas, equivalent to more than 30 Bbbl of oil reserves, have been discovered in Mozambique and Tanzania in recent years.

These huge discoveries are currently being queued up for development and are seeking an export market.

It is then with great excitement that Spectrum’s new seismic data, collected between 2014-2016 offshore Somalia, has revealed what has been previously missing from the East African margin – the scent of oil.

As Somalia announces plans to open its first offshore exploration license round, (orange, left) explorers analysing new seismic data have recognized the potential of finding reserves to match those of its neighbours in East Africa.

Beyond that, critically, they are discovering that Somalia’s potential is not just gas: Here lies a gem of an unexplored oil basin.

The 2019 Offshore License Round

A date of 7 February 2019 has been set for an auspicious launch event in London at Claridges Hotel when the Ministry of Petroleum and Mineral Resources will unveil the final block delineation, expected to consist of up to 50 blocks covering a total area of over 173,000 km2. During this launch they also plan to reveal the legal & regulatory framework, petroleum laws, local capacity, fiscal terms, round timings and other conditions. This event is also expected to include geological presentations gained through insight provided by Spectrum’s 2D seismic data across the open blocks. The round is set to close on 11 July 2019.
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