The price of oil may have fallen off a cliff recently, but that has not deterred energy giants like Exxon Mobil, Royal Dutch Shell, BP and Chevron from reactivating plans to drill in Somalia.
The Horn of Africa country could be the next focus for the energy industry, as the government claims the nation will be producing oil within six years.
London-based Soma Oil and Gas, which is backed by Russian billionaire Alexander Djaparidze, has completed an onshore and offshore seismic survey and it is encouraged by the results. Details are expected to be published by the end of the year.
Security remains a concern for foreign investors, but Somalia says with the help of troops from the African Union, it is making progress against the Islamist insurgents al-Shabab.
Nevertheless attacks continue in the region, with ones in the capital, Mogadishu, the south-central town of Baidoa and north-eastern Kenya, near the Somali border, in the last week alone.
Soma Oil and Gas chief executive Bob Sheppard, told the BBC the company’s seismic survey covered thousands of kilometres without any security worries.
“We’re able to do that with zero security incidents. What we’ve been able to demonstrate is that you can conduct offshore operations safely and securely,” he said.
A seismic survey involves firing an audio signal underground and analysing the sound waves that bounce back, which can indicate if there are deposits of oil or gas.
Read more: Somalia invites energy companies to explore for oil
Source: BBC News
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