Petroleum Africa
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Tuesday, June 2, 2015
Soma Oil & Gas Holdings proposed a deal with the Somali government that may lead to it gaining as much as 90% of the country’s prospective oil revenue.A draft PSA seen by Bloomberg sets the state’s share of revenue on the first 25,000 bpd at 10% if found at a depth of greater than 1,000 meters and when oil costs less than $70 a barrel. If output exceeds 150,000 barrels, Somalia’s take rises to 30%.
The company also proposed that if oil prices are at $70 to $150 a barrel, the company receives 70% of revenue for the first 25,000 barrels and 50% on production in excess of 150,000 barrels per day. The company also offers the government 50% for the first 25,000 barrels and 30% for production above 150,000 barrels if oil rises above $150 per barrel.
Soma has been working with the government for some time trying to establish the country’s prospectivity. The company conducted seismic surveys off the Somali coast covering 60,000 sq km. Soma is expected to give the government its processed seismic data is expected to be handed over to the government at the end of Q2.
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