Soma_Oil_&_Gas

Soma Oil & Gas

Soma Oil & Gas

Oil company operating primarily in Somalia

Soma Gas & Oil is a private oil company founded chiefly to explore natural resources in Somalia in 2013.[2] Its registered office is in London, United Kingdom.[3] The company is backed by Russian billionaire Alexander Djaparidze.[4]

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Overview

In 2013, it signed an oil contract with the Federal Government of Somalia, becoming the first international company to do so. In exchange for collecting data, Soma Oil & Gas has the right to apply for up to twelve oil blocks in an area seen by oil majors as one of the final frontiers for the commodity. The company, which has not undertaken a seismic survey before, was incorporated in the UK with capital of £0.001.[5] To date, the company has invested approximately US$40 million on the Exploration Programme, more than double the required spend under the terms of the Seismic Option Agreement.[6]

Seismic programme

In April 2015, the company announced it had completed the processing and reprocessing of the acquired 2D seismic data. The seismic acquisition programme was carried out by SeaBird Exploration and concluded in June 2014 with over 20,500 km lines of 2D seismic data having been acquired across a 114,000 sq km offshore evaluation area.[6]

Production sharing agreement

In May 2015, the company proposed a deal that could grant it up to 90% of Somalia's oil revenue. A draft production-sharing agreement says the government's share of revenue on the first 25,000 barrels (4,000 m3) of oil per day at 10% if found at a depth of greater than 1,000 m and when oil costs less than $70 per barrel ($440/m3). If output exceeds 150,000 barrels (24,000 m3) , Somalia’s take rises to 30%. According to Soma Oil & Gas the proposals being discussed are in line with industry standards.[7]

Serious Frauds Office investigation

In August 2015, Soma Oil and Gas was investigated by the Serious Fraud Office.[8] A UN report had accused Soma of "appearing to fund systematic payoffs to senior ministerial officials." Soma Oil and Gas denied any wrongdoing and its chair, Lord Howard, was not personally implicated in the accusations.[citation needed] On 14 December 2016, The Serious Fraud Office closed its investigation of Soma, citing insufficient evidence of corruption.[9]

References

  1. [1]
    "Resignation of Hassan Khaire on his appointment as Prime Minister of Somalia - Soma Oil & Gas". Soma Oil & Gas. 2017-02-23. Retrieved 2017-02-24.
  2. [2]
    "Company Overview - Soma Oil & Gas". Soma Oil & Gas. Retrieved 21 May 2018.
  3. [3]
    "Corporate Information - Soma Oil & Gas". Soma Oil & Gas. Retrieved 21 May 2018.
  4. [4]
    Padmore, Russell (8 December 2014). "Somalia hopes oil will boost economy". BBC News. Retrieved 21 May 2018.
  5. [5]
    "Somalia deal raises concerns about oil risks". Financial Times. Retrieved 21 May 2018.
  6. [6]
    "Completion of the Processing of the 2D Seismic Data - Soma Oil & Gas". Soma Oil & Gas. 27 April 2015. Retrieved 22 May 2018.
  7. [7]
    "Somalia May Pay 90% Oil Revenue to Explorer Under Draft Deal". Bloomberg.com. 28 May 2015. Retrieved 21 May 2018.
  8. [8]
    Justin Scheck and Jenny Gross (25 August 2015). "Report Raises Questions Over Somali Dealings of Firm Headed by U.K.'s Michael Howard". Wall Street Journal. Retrieved 10 January 2016.
  9. [9]
    "Serious Fraud Office Closes Corruption Investigation of Soma Oil". WSJ Risk and Compliance Journal. 15 December 2016. Retrieved 12 January 2017.
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