• 4 minutes Energy Armageddon
  • 6 minutes "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 12 minutes "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 2 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 13 hours Wind droughts
  • 4 days "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days Kazakhstan Is Defying Russia and Has the Support of China. China is Using Russia's Weakness to Expand Its Own Influence.
  • 2 days Oil Prices Fall After Fed Raises Rates
  • 11 days How Far Have We Really Gotten With Alternative Energy
  • 4 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 10 days "Russian oil executive and Putin critic Ravil Maganov dead after mysterious six-story fall" - The New York Post
  • 2 days 87,000 new IRS agents, higher taxes, and a massive green energy slush fund... "Here Are The Winners And Losers In The 'Inflation Reduction Act'"-ZeroHedge
  • 7 days Beware the Left's 'Degrowth' Movement (i.e. why Covid-19 is Good)
  • 10 days The Federal Reserve and Money...Aspects which are not widely known
Editorial Dept

Editorial Dept

More Info

SOMALIA: This New Frontier Isn’t Ready for Oil

Bottom Line: Somalia plans to sign 30 PSCs this year with foreign oil companies and auction off over 300 new oil blocks, but oil rights here are not solidified and this will be another bloody mess.

Analysis: Late last year, Somalia announced it would auction off 308 oil blocks, newly delineated. This has caused a bit of rush on Somalia, from the juniors to the supermajors, like Royal Dutch Shell and ConocoPhillips.

This pending rush on Somalia is premature. The country’s new government is transitional and dysfunctional at best, and by no means does it control the country—the militant al-Shabaab has been weakened, but certainly not driven out and still controls some key areas. Somalia’s coast is also a major piracy venue. It will be impossible to determine the power brokers here to land contracts, especially for the juniors. A multitude of influential tribes and militias are trying to gain control over oil prospects and dealing with the new government is only a small part of the equation. The power brokers are shifting and the dynamism is impossible to keep up with. It is difficult for a government to delineate new oil blocks on territory it does not fully control. The arrival of foreign oil companies will speed up territorial conflict over oil.

Somalia’s premature oil ambitions will also see it butt heads with Kenya over disputed offshore blocks. Kenya has the upper hand here, and it’s already licensed blocks in this…




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News