Mogadishu (AX) — Somalia is moving toward an open, competitive bidding process for companies seeking to enter its oil industry, as the country’s exploration program approaches a decisive phase.
Eng. Abdulqadir Aden, chairman of the Somali Petroleum Authority (SPA), said officials and experts from the Ministry of Finance, the Ministry of Petroleum and the Petroleum Authority had completed a multi-day training course on managing competition for Somalia’s petroleum resources.
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“Companies interested in working in Somalia’s oil sector will enter into an open competition,” Aden said.
He said the course covered the procedures and safeguards needed to give prospective investors a clear and transparent path to compete for opportunities in the sector.
The SPA chairman said the Canadian government supported the training. Somalia is seeking continued technical assistance and capacity-building, particularly in negotiating petroleum agreements and formulating strategies to attract investment.
Aden said exploration had reached a critical point, with ongoing work potentially delivering significant results in the coming months.
A confirmed oil discovery, he said, could draw greater international attention to Somalia and reshape future negotiations between the government and global petroleum companies.
“The discussions we have had in the past and the ones we will have in the future will be different,” Aden said, arguing that a discovery would create fresh opportunities to secure international investment.
He also pointed to improvements in Somalia’s security, political environment and maritime transport as factors strengthening the country’s investment prospects.
“The decline in shipping insurance costs and improvements in maritime security could make Somalia more attractive to international investors. The political and legal agreements had helped reduce some of the risks that previously discouraged investment, he noted.
Aden called Somalia a “new frontier” and an emerging market that remains largely unexplored, saying the country must act now to attract investors.
The Petroleum Authority chairman said Somalia hopes to achieve a major milestone in oil exploration by October, provided current plans remain on track.
