Somalia has signed an oil exploration agreement for seven areas off its coast with Coastline Exploration, a company based in the United States of America, the Americans recently announced in a statement.
Hydrocarbon discoveries in Uganda and Kenya and huge gas reserves in Mozambique and Tanzania have fueled investor interest in the East African areas.
The Somali National News Agency quoted Oil Minister Abdirizak Omar Mohamed as saying on Thursday that the agreement signed with Coastline was the completion of an earlier agreement signed in February, without giving further details.
How much did Somalia company pay to start oil exploration?
Coastline, an oil and gas company with business in East Africa, recently announced that it has paid a $7 million advance to the government of Somalia to begin exploration.
In 2019, Somalia passed an oil sector law that paves the way for exploration, particularly off its coasts.