Somalia granted Turkey rights to 90% of its oil and gas production under a new deal aimed at long-term energy cooperation. Turkey published the full agreement after submitting it to Parliament for ratification on April 22, revealing its growing influence in Somalia’s energy and defense sectors. Turkish and Somali energy ministers signed the deal in Istanbul on March 7, 2024.
The agreement is part of Turkey’s Africa Opening Strategy, identifying Somalia as a strategic partner due to its coastline and untapped energy reserves—estimated at 6 billion cubic meters of gas and up to 30 billion barrels of offshore hydrocarbons.
Turkey secured extensive operational and financial control. It will take 90% of the output from joint operations, while Somalia receives 10%, with no upfront payment required. Turkish companies are exempt from standard industry fees, including bonuses and administrative charges.
The deal allows Turkey to recover up to 90% of annual production as cost petroleum before sharing profits. Somalia’s revenue is further limited by a 5% royalty cap, excluding oil used for operations. Turkey can export its share freely and retain all earnings from both local and international sales.
Turkish entities can also transfer their interests to third parties without setting up local offices. The agreement guarantees legal protection, assigning dispute resolution to international arbitration in Istanbul. It also permits Turkey to implement its own security in Somalia, with related costs classified as recoverable.
A presidential decree seeks to deploy Turkish military and naval forces to Somalia for two years starting September 2025, supporting counterterrorism and securing exploration activities. The Turkish research vessel Oruç Reis, backed by five navy ships, is scheduled to begin offshore exploration later that year.
The deal takes effect once both governments complete legal formalities and notify each other through diplomatic channels.
source:eastleighvoice.co.ke
African Energy Council