Turkey Set to Drill Oil off Somali Coast from 2025: Strategic Expansion Unveiled

Somalia has announced a commitment with Turkey to initiate offshore petroleum extraction operations by 2025. This undertaking comes after a recent accord inked between both nations, intending to augment cooperative efforts in oil and gas discovery and development. The agreement, which was finalized in Istanbul between the Somalian and Turkish Energy Ministers, lays the foundation for a broad alliance in energy resource management.

The Turkish government has expressed intentions to start seismic surveying and drilling activities along the Somali shoreline, with a focus on areas adjacent to Barawe and Hobbio districts. This initiative marks a strategic approach by Turkey to expand its influence within the energy sector of the Horn of Africa and denotes an extension of the bilateral relations between the two countries.

Key Developments:

• The exclusive economic zone of Somalia is the targeted area for hydrocarbon prospecting, as noted in an official memorandum from Somalia.
• Revenue distribution particulars are to be negotiated in future Production Share Agreements.
• Investments are anticipated to provide greater economic returns to the Somali government and populace, as articulated by the Turkish Energy Minister.
• Both nations view the deal as an opportunity to harness Somalia’s resources for its people and to fortify Turkey’s regional involvement in energy infrastructure projects.

In the broader context, Somalia’s efforts to advance its petroleum industry are reflected in legislative measures, such as the enactment of the Somali Petroleum Law by President Mohamed Abdullahi Farmaajo in 2020. This law’s objectives include the fair allocation of petroleum resources for the Somali people and the establishment of a comprehensive governance structure.

Historically, international oil companies have had an involvement in exploring Somali oil reserves dating as far back as the 1950s. However, activities were suspended following the onset of civil unrest in the early 1990s. As of October 2022, the current President Hassan Sheikh Mohamud has endorsed Production Sharing Agreements between international firms and the federal government, signaling Somalia’s receptiveness to foreign investment in its energy segment.