Turkey to Secure Up to 90% of Somalia’s Oil and Gas Revenue, Document Reveals

MOGADISHU, Somalia — Turkey will receive up to 90% of the revenue from oil and gas extracted from Somalia’s territorial waters under a recently disclosed agreement, sparking debate over its fairness, according to a report by Nordic Monitor published Tuesday.

The Hydrocarbon Exploration and Production Agreement, signed July 19, 2024, by the Turkish Petroleum Corporation and the Somali Petroleum Authority, grants a Turkish company exclusive rights to explore and produce hydrocarbons in three offshore blocks spanning 15,000 square kilometers. Somalia will receive only 5% of the total revenue, per the document obtained by Nordic Monitor.

Under Article 4.7, Turkey is entitled to 90% of annual oil or gas output through a “cost petroleum” system, allowing it to recover exploration and production costs before sharing profits. Turkey will fund exploration and equipment, with Somalia as the official partner.

The revenue split has drawn sharp criticism. Somali lawmakers, who approved the deal earlier this year, told Nordic Monitor they did not see the official document, fueling concerns about transparency. Somali government officials have not commented on the agreement’s terms.

Economic analysts and diplomats warn the deal could jeopardize Somalia’s financial future without renegotiation, given its estimated 30 billion barrels of untapped reserves. “This risks long-term losses for Somalia,” said a Nairobi-based energy consultant, speaking anonymously due to the issue’s sensitivity.

The agreement is part of broader Turkey-Somalia cooperation. A February 2024 defense and economic memorandum commits Turkey to rebuilding Somalia’s navy over 10 years, reportedly for 30% of revenue from Somalia’s exclusive economic zone. A March 7, 2024, deal in Istanbul outlined joint offshore oil and gas exploration, followed by an October 25, 2024, agreement for onshore hydrocarbon cooperation.

Turkey’s seismic vessel, Oruç Reis, began a seven-month mission off Somalia’s coast on October 25, 2024, conducting 3D surveys across the licensed blocks. Escorted by Turkish naval frigates, the vessel has completed nearly 80% of its work, according to posts on X. Turkish Energy Minister Alparslan Bayraktar said preliminary data suggests significant reserves, with plans for a drill ship to follow.

Turkey’s growing role in Somalia, including operating a military base in Mogadishu and managing its port and airport, reflects strategic ambitions to tap Somalia’s resources and counter regional rivals like Ethiopia. However, Somalia’s tensions with Ethiopia over a Somaliland port deal and Somaliland’s ban on Turkish vessels in its waters pose challenges.

As Turkey advances exploration, the deal’s lopsided terms continue to stir debate over Somalia’s economic sovereignty.

GAROWE ONLINE