By Ebi Kesiena
Somalia has embarked on a renewed push to revive its oil and gas sector, positioning itself as one of Africa’s last untapped frontiers for hydrocarbon exploration. After decades of halted activity, the East African nation is embarking on a renewed investment push designed to unlock vast energy resources and attract major international players.
The renewed momentum is being spearheaded by the Ministry of Petroleum and Mineral Resources, which is courting investors and innovators across Somalia’s oil and gas basins. The campaign marks a turning point for the country, where initial exploration efforts were abandoned in the 1980s.
Global interest in Somalia’s energy sector has surged in recent years, with a string of high-profile agreements signaling confidence in the country’s potential. In March 2024, Somalia signed a landmark deal with Turkey, granting Ankara exclusive rights to explore three offshore blocks. The Turkish seismic vessel Oruç Reis has since been deployed to survey an area of 5,000 km², while state-owned Turkish Petroleum Corporation (TPAO) is also partnering on joint onshore exploration projects.
The Turkish partnership builds on other recent deals. Liberty Petroleum secured rights in 2024 to three deepwater blocks, while Coastline Exploration inked a 2022 agreement covering seven blocks. Earlier studies, such as a 2014 seismic survey by TGS, identified reserves estimated at up to 30 billion barrels of crude across 15 offshore blocks, underscoring the immense potential at stake.
Reforming the Framework
To reinforce its investment appeal, the Somali Petroleum Authority has revised its Production Sharing Contract model and Tender Protocol. The reforms align fiscal terms with global industry standards, improve transparency, and provide greater security for foreign investors. These policy shifts reflect Somalia’s determination to establish a stable and competitive environment for oil and gas exploration.
The new framework and opportunities will take center stage at African Energy Week 2025: Invest in African Energies, a premier industry gathering scheduled to hold in Cape Town next month. Somalia’s Minister of Petroleum and Mineral Resources, Dahir Shire Mohamed, alongside Somali Petroleum Authority chief executive Abdulkadir Aden Mohamud, will lead the country’s delegation to the high-profile conference.
Meanwhile, industry leaders are optimistic that Somalia’s proactive approach could reshape the regional energy landscape. NJ Ayuk, Executive Chairman of the African Energy Chamber, described Somalia as a vital new player in Africa’s oil and gas future.
“As one of Africa’s final frontiers for oil and gas exploration, Somalia offers significant opportunities for exploration and production companies,” Ayuk noted. “Recent agreements signal a renewed push by international stakeholders to unlock the potential of Somalia’s oil and gas market.”
A Defining Moment
Somalia’s bid to attract sustained investment comes at a critical time when African nations are competing to position themselves as reliable energy hubs. By leveraging strategic partnerships, reforming policies, and highlighting its untapped reserves, Somalia is carving out a place on the global energy map.
If these efforts succeed, the country could not only diversify its economy but also play an important role in meeting future global energy demands, turning its long-dormant oil and gas sector into a cornerstone of national growth.
