ANKARA, Türkiye – Somalia’s historic agreement with Türkiye on oil and gas exploration has attracted significant attention — and unfortunately, a fair share of misinformation. Some reports have wrongly claimed that Somalia is giving away its oil, or that Türkiye will walk away with 90% of the country’s energy wealth.

But what does the actual agreement say?

The facts tell a very different story — one of opportunity, ownership, and Somalia’s strategic move to unlock its natural resources safely and responsibly.

Somalia’s oil belongs to the Somali People — And always will

At the heart of the agreement is a simple truth: Somalia remains the rightful owner of all its oil and gas reserves. The contract clearly states that the hydrocarbons under Somalia’s land and seas are the common property of the Somali people.

The agreement does not transfer ownership to Türkiye or any other entity. Türkiye’s role is as a contractor and investor, not an owner. Somalia retains full sovereign rights over its resources.

What does the 90% clause really mean?

One of the biggest myths being spread — including by Nordic Monitor — is the claim that “Türkiye takes 90% of Somalia’s oil.”

This is simply not true.

The agreement allows Türkiye to recover up to 90% of the oil and gas produced each year as “cost petroleum” — but this is only until their exploration and production costs are fully repaid. This process is known as cost recovery, and it is a standard, internationally recognized model in oil production agreements.

Here’s how it works:

• Türkiye covers the full financial risk for exploration, drilling, and infrastructure development.
• Türkiye can recover its investment from the oil produced — up to 90% per year until the costs are paid back.
• After the investment is recovered, the remaining production is called profit petroleum — and that is shared between Somalia and Türkiye.

Importantly, Somalia still receives up to 5% royalty from total production from the very beginning — even during the cost recovery phase.

This means Somalia earns from day one without taking on the financial risks of exploration.

It is also important to note that this agreement will remain in force for five (5) years and may be automatically extended for successive periods of three (3) years, unless one of the parties notifies the other in writing, through diplomatic channels, of its intention to terminate the agreement at least six (6) months before its expiration.

This means that even if the agreement is criticized or seen as unfavorable — as some have claimed — Somalia still has the option to withdraw from the deal after five years or renegotiate its terms when the initial period ends.

Why Somalia chose this structure?

Oil exploration — especially offshore — is one of the most expensive and high-risk industries in the world. Drilling one offshore well can cost upwards of $100 million. Many exploration projects around the world end up finding no commercially viable oil at all.

Somalia, like many emerging producers, currently does not have the capital, equipment, or expertise to carry out such projects alone.

By using the cost recovery model, Somalia brings in foreign partners who:

• Provide the investment and technology
• Assume 100% of the exploration risk
• Help develop local capacity and infrastructure
• Generate royalty and profit revenue for Somalia — whether the country invests directly or not

This is the same strategy successfully used by other developing oil-producing nations, including Uganda, Mozambique, and Ghana.

Setting the record straight: Addressing the misinformation

Some media outlets have spread false or misleading claims about the deal. Here are the facts:

“Türkiye gets 90% of Somalia’s oil” — False.

✅ The 90% figure applies only to cost recovery, not ownership or profit share.
✅ Once the contractor’s costs are recovered, the remaining oil is shared — Somalia receives its share of the profit petroleum.

“Somalia gave away its oil rights” — False.

✅ The agreement clearly confirms that all oil and gas remain Somalia’s property.
✅ Türkiye is only an operator, not the owner.

“Somalia is left with just 10%” — False.

✅ Somalia receives up to 5% royalties immediately, plus its share of profits after cost recovery.
✅ The claim that Somalia only gets 10% is a misunderstanding of how cost recovery works — it is not a permanent share.

Why this agreement protects Somalia’s future

Rather than giving away resources, Somalia has secured:

• Revenue from royalties and profit share
• No financial exposure to the risks of failed exploration
• Ownership of all reserves
• Potential for skills transfer, local jobs, and future energy independence

The choice was not between “90% or nothing.” The choice was between partnering to develop Somalia’s resources — or letting those resources remain under the ground, unused and untapped.

Conclusion: A step forward, not a step back

The Somalia-Türkiye oil agreement is not exploitation — it is strategy.

It is a carefully structured deal designed to protect Somalia’s ownership of its resources, while bringing in the expertise and investment required to finally turn potential into progress.

Somalia keeps the oil. Somalia earns the revenue. And Somalia controls the future of its own energy sector.