Former Tory leader signs deal for Soma Oil and Gas during his first visit to Mogadishu

AMID a surge of interest in oil and gas exploration along the east African coast, former Conservative leader Michael Howard has brokered the first oil deal with the new government of Somalia, reports the Financial Times.

Lord Howard, who joined Soma Oil and Gas as non-executive chairman only three months ago, signed the deal in Mogadishu, the terrorism-struck capital, during his first visit there on Tuesday.

The new government in Somalia – a country destroyed by years of civil war, piracy and terrorism – has previously warned that the broken state was too fragile to risk oil exploration because it was likely to pit different regions and warlords against each other. However, it has since changed its approach.

Soma will undertake a seismic survey costing more than $20m, largely offshore but with the right to explore onshore as well.

“Because of the obvious reasons it’s very much underexplored,” said Robert Sheppard, Soma’s chief executive. He believes the survey will increase stability in the country by helping to generate revenues.

His company, formed this year, will nevertheless put armed guards aboard ships to ward off Somali pirates who have previously taken over vessels and demanded millions in ransom pay-offs.

Source: The Week