Africa Oil Week: Somalia to launch first oil and gas licensing round

Somalia made a significant announcement at Africa Oil Week in Cape Town, declaring that the country is officially open for business and will be commencing its first oil and gas licensing round in late December. CNBC Africa's Fifi Peters had the opportunity to interview Somalia's Minister of Petroleum and Mineral Resources, Abdirashid Mohamed Ahmed, who shed light on the country's venture into the oil and gas sector. Minister Ahmed emphasized that Somalia is eager to attract investors and is on track to launch the licensing round by the end of the year. Amid concerns about security challenges such as the past issues of piracy and the ongoing battle against Islamic insurgency, Minister Ahmed reassured potential investors that Somalia has made great strides in ensuring safety and security. He highlighted the successful efforts by international and Somali forces in eradicating piracy over the past decade, making offshore Somalia a secure investment destination. The collaborative efforts to combat Islamic extremist groups have also led to significant improvements in security across the regions. Regarding the maritime border dispute with Kenya, Minister Ahmed clarified that Somalia has taken the matter to the international court of justice and is awaiting a ruling. Despite the dispute, Somalia maintains a good relationship with Kenya, emphasizing the daily interactions between the people of the two countries. The prospects for Somalia's oil and gas sector look promising, with seismic data indicating substantial petroleum and gas resources in the country's offshore areas. The government has laid the groundwork for effective governance and resource-sharing agreements to ensure that the benefits of the sector reach the local communities. Prioritizing collaboration on a regional, national, and continental level, Somalia aims to leverage its resources to create job opportunities for its neighbors and contribute to the growth of the continent's energy sector. Former Nigerian president Olusegun Obasanjo's speech on the importance of collaboration resonated with Minister Ahmed, who expressed Somalia's commitment to playing a proactive role in regional and continental partnerships. With a focus on inclusive growth and sustainable development, Somalia is poised to become a key player in the African oil and gas industry, offering new avenues for economic progress and shared prosperity.