British oil giant British Petroleum signed concessions with the Petrol Department for the Somali Federal Republic to explore oil and gas in the war raven East African nation.
Intelligence reports existence of significantly large oil deposits in Somalia which could change global prices if tapped.
The Somali shores of Indian Ocean could be having some of the worlds largest oil deposits.
Experts geographical assessments point out billions of oil barrels are reserved untapped in Somalia.
Intelligence collected by Strategic Intelligence shows Somali Puntland province has 10bn barrels of oil reserves, making one of the top 20 countries holding oil.
A company that drilled wells in Puntland estimate 4bn barrels (about $500bn worth at today’s prices) in its two discoveries in Somalia.
If drilled, Somali oil would flood the market beating countries like Nigeria and Kuwait to make Somalia the 7th largest oil producer in the world.