Somalia-Turkey oil deal sparks controversy over transparency

MOGADISHU, Somalia - A confidential oil deal between the federal government of Somalia and the Republic of Turkey has raised questions from members of the public, who believe that the agreement was done in the most opaque manner given the circumstances at that time.

The oil deal, whose details have since been leaked by the Turkish parliament, shows that the terms widely favor Ankara and raise concerns over Somalia's economic sovereignty and transparency.

A scrutiny of the documents indicates that the deal grants Turkey exclusive control over exploration, refining, and marketing operations in Somalia, while offering limited benefits to the Somali government, despite the country's economic struggles.

One of the most contentious clauses allows Turkey to recoup 90% of its operational costs before Somalia receives any share of the profits. The Somali government is entitled to just 5% in royalties and does not receive a signing bonus.

Economic analysts say the agreement was signed in secret by only two Somali ministries, without parliamentary approval, and was not disclosed to the Somali Parliament, a clear violation of the country's constitutional order and existing acts.

It also permits Turkey to manage security operations at Somalia’s expense and exempts the Turkish company involved from paying taxes in Somalia, prompting concerns of an added burden on local citizens.

Disputes under the agreement are to be resolved in courts based in Istanbul, raising questions over judicial neutrality. The contract automatically renews every three years unless Somalia provides a six-month notice for termination, the agreement states.

Observers and legal experts say the deal reflects deep economic and political imbalances, with Turkey set to gain significantly while Somalia is sidelined from managing its natural resources. Legal challenges to the agreement would likely face lengthy litigation in Turkish courts.

Somalia is believed to have deposits of oil and gas, but since the civil war broke out in 90s, the potential has not been exploited fully. But in recent months, Turkey has signed various agreements with Somalia for oil exploration.

GAROWE ONLINE