Somalia: Potential Frontier for Oil and Gas Exploration 2013

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Somalia: Potential Frontier for Oil and Gas Exploration in 2013
Somalia intends to move forward and give hope to its citizens. In order to do that, it must earn
revenue to provide the basics: build sustainable peace, improve security for everyone in Somalia
and provide public services: education, health, sanitation, access to clean water and build
infrastructure. Resources that can generate revenue include the development of livestock, fishery,
agricultural products, minerals, oil and gas in addition to collecting taxes from property, income,
payroll or workforce, corporate, capital gains, wealth, goods and services, value added tax
(VAT) and many other types of taxes.
Somalia hopes to gain revenue from oil and gas, currently hidden underground Somalia
(onshore) and below the Indian Ocean-floor (the offshore). More than two decades ago (in the
eighties), there was an “oil and gas exploration rush” to Somalia, driven by the country’s huge
oil and gas potential. The rush was led by Conoco-Phillips, Shell (Pectin), Amoco, Eni, Total and
Texaco, who left the country in “force majeure” waiting to come back at the right time, security
wise.
In a recent meeting, the Minister of Resources said, “Given that the security condition of the
country is improving at a rapid speed and the presence of a legitimate transparent government,
companies of the past and the new ones are all welcome. Somalia will be open for business in
2013 and we honour the agreements of the companies who filed “force majeure” and left the
country due to the civil war. We are now working to review the Petroleum Law and make it
more competitive and attractive to oil companies and investors.”

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