Somalia, Turkey sign onshore hydrocarbon exploration agreement
The agreement gave the Turkish Petroleum Corporation (TPAO) rights for oil exploration in two and three-dimensional seismic exploration activities in the three land blocks of 16,000 square kilometres in Somalia.
Somalia on Thursday signed an onshore exploration agreement with Turkey to cover new hydrocarbon explorations on land expected to go hand in hand with an ongoing offshore exploration expedition, both countries have announced.
The deal was signed in Ankara between Somalia’s Minister of Petroleum and Mineral Resources, Dahire Shire Mohamed and his Turkish counterpart, Alparsan Bayraktar.
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The agreement gave the Turkish Petroleum Corporation (TPAO) rights for oil exploration in two and three-dimensional seismic exploration activities in the three land blocks of 16,000 square kilometres in Somalia.
No confirmations were given of where exactly inside Somalia the explorations on land would be conducted. The latest deal comes at a time when Turkey is already exploring for oil and natural gas offshore in Somalia following a similar deal signed with Somalia in mid-2024.
Somalia Petroleum Minister Dahir confirmed the new deal signed in Ankara and said Somalia is eager to explore for oil on land and at sea and that the explorations, if successful, will benefit Somalia economically.
“Today in Ankara, we signed an agreement approving Turkey to explore for oil on land in Somalia. As you know, we already have an agreement with them for oil explorations offshore, which is ongoing in three blocks. Since there is need to also explore for oil on land for the country to benefit from it, we today signed with them to also give them rights to also search for oil on land,” Minister Dahir told State TV late on Thursday.
The Minister said Somalia is endowed with many resources, both on land and at sea. He signed the deal for Turkey to prospect for oil on land also since it’s much easier than offshore drilling.
“Somalis is endowed with many natural resources both on land and at sea. In the same way we are prospecting for oil offshore, we also need to look for oil on land, which is easier in terms of exploration time and cost compared to offshore prospecting and drilling. This is also one of the reasons we signed this deal,” he added.
His Turkish counterpart, Alparsan Bayraktar, reiterated Turkish resolve in working with Somalia to ensure the country benefits from its natural resource prospects.
“Our national company, Turkish Petroleum Corporation (TPAO), and Somalia Petroleum Administration signed the Hydrocarbon Exploration and Production Agreement between Somalia and Turkey for onshore areas,” Turkish Petroleum Minister Alparsan posted on X.
Mineral prospects
The Turkish Minister also confirmed for the first time that Turkey is also looking to start prospecting for minerals in Somalia. Although no official data is available, Somalia is also believed to have uranium, gold, copper and other mineral deposits to add to oil and natural gas.
“We are also aiming for a partnership in the field of mining. We expect Turkish mining companies to come to Somalia and make agreements after the necessary legal processes,” he added.
Somalia views the hydrocarbon exploration deals with Turkey as part of broader efforts to attract international investments in its energy sector to create more economic opportunities.
These deals further deepen Somalia-Turkey strategic engagements building on already existing defence, infrastructure and development agreements that make Turkey its biggest trading partner.
Turkey has become a close ally of Somalia in recent years since Turkish President Recep Tayyip Erdogan made his visit in 2016, becoming the first head of State to visit Somalia in its worst violent periods.
Since then, Turkey has gone ahead to build its biggest military base in the world as well as its biggest embassy in Somalia, and Turkish companies are the biggest international investors in Somalia.
Two Turkish companies are also managing the main international airport and seaport, and Turkish products are sold in Somalia, replacing Chinese and products from the UAE, which initially were common in Somalia.
According to the Observatory of Economic Complexity (OEC), an online data visualisation and distribution platform for international trade data, trade between Somalia and Turkey strongly favours Turkey with an export volume of $424 million in 2023 compared to Somalia’s paltry $1.02 million exports to Turkey in the same year.
The main products Turkey exported to Somalia in 2023 were pasta, wheat flour and raw iron bars. Somalia’s exports to Turkey were mainly oils, seeds, insect resins and cheese. From 2018 to 2013, Turkish exports to Somalia have increased at an annual rate of 18.3 percent, from $183 million in 2018 to $424 million in 2023.
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