Somalia is Open for Business, says Petroleum Minister

Inspite of the perception many have about Somalia as a stability challenged nation, the country is opening its doors to investors to explore the country’s rich hydrocarbons and favorable geological structure which offers huge opportunities for investors in the oil and gas industry. The Somalian Minister of Petroleum and Mineral Resources, Hon. Abdirashid Mohammed Ahmed is calling on investors wishing to explore the huge opportunities in the East African market to come to his country. Speaking at the just concluded Africa Oil & Power conference, he noted that “nowhere is the contribution that the energy industry can make to civil society and economic development greater than in Somalia,” he said, noting that the sector has the potential to greatly enhance stability and economic development.

Somalian Minister of Petroleum and Mineral Resources, Hon. Abdirashid Mohammed Ahmed
Somalian Minister of Petroleum and Mineral Resources, Hon. Abdirashid Mohammed Ahmed

On its path to transforming its petroleum industry and attract the attention of new investors, Somalia has made significant progress in recent years. This year, the country passed a new petroleum law which enabled it to make progress in exploration and development, and attract interest from oil and gas majors ExxonMobil and Shell.

Read also : African Energy Chamber Commends the Appointment of Timipre Silva as Nigeria’s Minister of Petroleum

“My ministry worked successfully with the six federal member states to develop an equitable and transparent framework for development, focused on the greater good of Somalia and its entire people, whilst ensuring that we are highly competitive internationally to attract investment by delivering returns that are consistent with the risks and rewards of developing our off-shore industry,” said the minister.

Eager to demonstrate to the world that Somalia is open for business, the minister said the country is currently on an international roadshow which will showcase the exploration opportunities available in its hydrocarbons sector. “This includes seismic data recently shot by Spectrum covering 20,185 km. The current licensing round is in respect of up to 15 blocks, covering a total area of approximately 7,500 square miles.  The bid round will follow shortly after to ensure that the world knows: Somalia is open for business.”

Read also : Between extortion and the sanctity of Petroleum contracts in Nigeria, DRC and Senegal 

Minister Ahmed also spoke on the attractiveness of the country’s production sharing agreement (PSA) model for offshore oil exploration and development – regarding it as being amongst the most attractive to investors in the frontier basins. The PSA provides a highly attractive regulatory fiscal framework that is both competitive and equitable for both the people of Somalia and international oil companies (IOC).

“By equitably linking of royalties and share of revenue closely to the price of oil, the Somalia PSA ensures that IOCs can recover their up-front development costs and earn a fair share profit even if oil prices fall, whilst maximizing the profit going to the Somalian people,” the minister explained.

 

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry.

Somalia-Born Jamila Gordon Raises $3.5 Million For Her Anti-Slavery Blockchain Startup

Lumachain African startup Australia

African startup founders are succeeding all over the world. Although in faraway Australia, Jamila Gordon’s Lumachain has just raised $3.5 million in a funding round led by the CSIRO-linked venture capital investor Main Sequence.

Lumachain’s founder Jamila Gordon previously held senior roles at Qantas and IBM after immigrating from her native Somalia in east Africa. The company is helping businesses in the food supply chain ensure they are ethically sourcing produce following the introduction of new laws against modern slavery in Australia.

Lumachain African startup Australia

Here Are What You Need To Know

When Jamila Gordon was a five-year-old in Somalia she was forced to work instead of receiving an education — fast forward several decades, and she has just raised $3.5 million to grow a business she hopes will help in the fight against modern slavery.

Gordon — a former chief information officer at Qantas and senior executive at IBM — helms Lumachain, a software-as-a-service company with a big social purpose.

The investment comes as businesses across all sectors in Australia are under pressure to ensure they are not profiting from forced labour or other forms of modern slavery.

Earlier in July, Australian retailers Cotton On, Target and Jeanswest announced they were investigating their own processes after an ABC Four Corners report found the companies were linked to factories in China where forced labour could be occurring.

Two brothers were jailed in the UK in January after being found guilty of breaching the country’s modern slavery laws for exploiting Polish workers in a warehouse owned by athletic wear retailer Sports Direct.

Companies in the food business might want to look to blockchain to avoid a similar fate.

What The Company Does

The company’s product uses blockchain technology to find and track items in the food supply chain which could be unethically sourced or the product of forced labour.

This function is not just good for society, but good for business, as it can help reduce waste, avoid recalls and — for companies with revenue of more than $100 million per year — ensure they stay compliant with the Modern Slavery Act introduced in Australia in 2018.

That might be part of the reason Gordon has been able to raise millions from private investors, including some heavy hitters like Main Sequence Ventures, which manages the CSIRO’s, Innovation Fund.

The way goods move within the supply chain is still very basic, which means there’s still a lot of waste, inefficiency and risk,” Gordon said in a statement announcing the successful funding round.

“With growing demand for better quality food products and ethical and transparent business processes, plus a rising middle class across Asia, we see tremendous opportunity to improve the productivity, security and safety of what we eat.”

Main Sequence partner Mike Zimmerman said in the same statement that “absolute trust, verification, and efficiency” are needed in the global food supply chain and that Lumachain is “best positioned” to provide it to the industry.

 

 

Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.

Facebook: https://web.facebook.com/Afrikanheroes/