Mogadishu, Somalia – Somalia’s President Hassan Sheikh Mohamud has staunchly defended a recently signed hydrocarbons exploration agreement with Turkey, calling it a partnership based on “mutual interests” and stressing that Turkey was the sole country to express interest.
The deal, formalized earlier this year, triggered a significant debate on Somali social media platforms following a report by the investigative platform Nordic Monitor that detailed its terms, including implementation, profit-sharing, and dispute-resolution provisions.
Addressing the public discussion, President Mohamud asserted that Somalia had not previously engaged with any other nation regarding its offshore oil and gas reserves, positioning the agreement as a historic first step towards realizing the country’s potential energy wealth.
“Offshore exploration is ongoing, as you know,” President Mohamud stated. “We have now signed this agreement covering offshore areas. This does not mean we are exclusively granting this opportunity to Turkey. Still, they were the only country that applied and was interested.”
Deep-rooted relationship
He argued that Turkey’s proactive engagement set it apart from potential future investors who might only come forward years after Somalia has established itself as a hydrocarbon producer.
The president also highlighted the deep-rooted relationship between Somalia and Turkey, noting Ankara’s consistent role in providing humanitarian aid, infrastructure development, and military support and often acting as a mediator in Somalia’s relations with neighboring states over the past decade.
Somalia is believed to hold substantial untapped oil and gas deposits offshore in the Indian Ocean. However, exploration and development efforts have been significantly impeded for decades by persistent conflict, political instability, and the nascent state of its legal and regulatory framework for the energy sector. The federal government is actively seeking foreign investment to unlock these potential resources.
Details within the Nordic Monitor report, particularly concerning the financial terms and mechanisms for resolving disagreements, appear to be central to the public scrutiny and debate surrounding the agreement. The management of potential resource wealth and its distribution within Somalia’s federal system are sensitive political issues.
The contract reportedly permits Turkey to recover up to 90% of the annual output as “cost petroleum” to cover operational expenses. Somalia is entitled to a 5% royalty from the outset of production, even before cost recovery begins. Once costs are recouped, the remaining profit, known as “profit petroleum,” is split between Turkey and Somalia.
The agreement also exempts Turkish entities from paying common industry fees, including signature bonuses, surface rents, and administrative charges — further fueling accusations that the deal heavily favors Turkey.
President Mohamud framed the agreement as a pragmatic necessity given the lack of alternative interested international partners. However, critics frequently raise concerns about transparency in major resource extraction deals and the need for robust oversight to ensure revenues benefit the entire nation and are managed effectively.
The president’s vocal defense underscores his administration’s view of the Turkish partnership as a vital catalyst for initiating offshore exploration and positioning Somalia as a future energy exporter, leveraging a key bilateral relationship to attract initial investment.
The agreement explicitly targets offshore exploration blocks, representing a critical move by Mogadishu to develop the country’s hydrocarbon sector and capitalize on its extensive maritime potential.
Turkey’s strategic interests
The oil deal is part of Turkey’s broader effort to expand its strategic footprint in the Horn of Africa. In February 2024, Turkey and Somalia signed a separate defense cooperation agreement under which Turkey committed to rebuilding Somalia’s navy over 10 years.
Turkey also operates its largest overseas military base in Mogadishu and has been involved in various infrastructure projects across the country, from hospitals to schools and airports.
The agreement comes amid heightened tensions between Somalia and Ethiopia over the breakaway region of Somaliland. Turkey has positioned itself as a key mediator in the dispute, with President Recep Tayyip Erdoğan holding meetings with both Somali President Hassan Sheikh Mohamud and Ethiopian Prime Minister Abiy Ahmed in recent months.
Somali civil society organizations and some opposition leaders have called for fully disclosing the agreement’s terms and urged the government to renegotiate the deal on more favorable terms for Somalia.
“There must be transparency and accountability. The Somali people have a right to know how their resources are being managed,” said one activist from the Mogadishu-based Center for Policy Analysis.
International watchdogs, including the Natural Resource Governance Institute (NRGI), have also raised concerns about the deal’s lack of transparency, warning that opaque contracts often lead to corruption and resource mismanagement in fragile states.