The fallout between Kenya and Somalia could deteriorate further following the latest auctioning of oil fields to foreign companies.
Somalia state media over the weekend reported that the country had reached $1.7 million deal with Shell and Exxon Mobil for oil blocks.
The two companies will now extract oil for the next three decades, with an option of renewing the contract according to the state.
"Shell/Exxon Mobil have paid $1.7 million to Somalia as the preliminary rent for 30 years," SONNA reported.
The deal had been delayed since June when it first emerged that the two companies would take over oil blocks along Indian Ocean.
Mr Mohamed Ahmed, the country"s Petroleum minister, had said the agreement with Shell and Exxon Mobil was “a positive step in developing a road map for them to progress their interest in developing our resources”.
Shell, which withdrew with ExxonMobil from the country shortly before the civil war broke out in 1991, said the payment “does not affect force majeure status, which remains in place”, indicating it was not rushing back into the country.
Oil companies have also questioned the ministry about whether legislation will be ready in time, and the terms of the production sharing agreements.
“We are hoping for business. We have three advantages: our geographical location, promising seismic data and attractive legislation,” said Mr Ahmed
This comes amid pending dispute between Kenya and Somalia over Indian Ocean maritime border, with the two nations set to face each other in June 2020.
Kenya accused Somalia in March of violating the maritime, even withdrawing her ambassador to Mogadishu briefly. President Uhuru Kenyatta has been pushing for dialogue.