In March, Somalia signed an oil and gas deal with Turkey to boost cooperation in exploring and exploiting deposits, officials said. During the Somali Defense Minister’s visit to Ankara, the two countries also signed agreements on defense and economic cooperation.
Stronger economic partnership between the two nations
As Somalia strives for stability amid ongoing threats from Islamic insurgents, newly discovered oil and gas deposits could be transformative. Geo-seismic studies indicate that Somalia has at least 30 billion barrels of oil and gas reserves.
Turkey is making significant strides by deploying naval support to Somalia’s waters for oil and gas exploration. « We will be sending our ship Oruc Reis to Somalia in late September or early October. It will carry out a major seismic survey there, which could last for months », announced Turkish Energy Minister Alparslan Bayraktar.
The Middle Eastern nation has emerged as a key ally of the Somali government in recent years. Turkey, which designed Tanzania’s first electric train, has built social facilities, developed infrastructure, and offered scholarships to Somali students for studies in Turkey. In 2017, Turkey opened its largest overseas military base in Somalia and continues to provide training for the Somali army and police.
Energy agreement signed
The Somali Minister of Petroleum and Mineral Resources and his Turkish counterpart signed the energy agreement in Istanbul, further strengthening relations between the two nations. This oil deal came just two weeks after Somalia and Turkey inked a naval and defense cooperation agreement.
According to an official statement, the agreement encompasses hydrocarbon reserves in Somalia’s exclusive economic zone and the exploration of undeveloped land. However, the Minister did not disclose how the investment revenues would be distributed.
Somalia’s oil and gas industry
Before the conflict and government collapse in 1991, Somalia had international oil and gas cooperation agreements, which were canceled due to the civil war. In 2020, the government enacted a petroleum law, establishing the Somali Petroleum Authority to regulate the sector and manage agreements with international contractors.
In 2022, Somalia implemented offshore oil and gas licensing regulations and signed its first profit-sharing agreement for exploration. More licenses for multinational companies are anticipated in the coming years.
The world is keenly observing how Somalia, with its shaky democratic practices, manages its oil and gas opportunities. Exploration and production agreements are structured to ensure Somalia benefits even before oil is commercially discovered.