Somalia to launch first oil drilling campaign within months, after decades of sporadic exploration, says president

Somalia’s President Hassan Sheikh Mohamud has announced the launch of the country’s first-ever oil drilling campaign in the coming months, local outlet Shabelle Media Network reported.

Mohamud said the exploration campaign represented a vital step in Somalia’s efforts to unlock its potentially vast hydrocarbon resources and lay the foundations for long-term economic growth, signalling the start of a new chapter for the Horn of Africa country. 

“For the first time, Somalia will begin drilling a well that will test the volume and quality of our oil reserves,” the president was quoted as saying at the opening of the 7th session of the joint parliament in Mogadishu on September 29. “This is a new economic journey – one that can transform the future of our people.”

Over the past few years, the Somali federal government has signed exploration and drilling agreements with several international oil and gas firms. These companies, writes Shabelle Media, carried out onshore and offshore seismic surveys, with preliminary findings indicating Somalia could host significant untapped crude oil reserves.

Mohamud hailed the upcoming launch as a “milestone” in the government's broader strategy to generate revenue, create jobs, and reduce poverty by harnessing the country's natural wealth.

The announcement coincides with growing interest from foreign investors, with several operators already holding licences to explore for oil in Somalia’s offshore and onshore acreage. According to the government, responsible investment in the country’s upstream sector could lift millions of people out of poverty and provide funding for essential services.

Somalia has never conducted oil drilling campaigns owing to decades of political instability, civil unrest, and weak government institutions that deterred foreign investors. Its potential reserves remained underexplored owing to disputed maritime borders, security risks and the absence of a clear legal framework to manage petroleum contracts.

However, Somalia laid the groundwork for oil exploration by passing a Petroleum Law in 2020, which created the Somali Petroleum Authority (SPA), and by agreeing a resource-sharing deal with federal member states to clarify how revenues will be distributed.

The government has also introduced model production-sharing agreements, launched offshore licensing rounds, and signed contracts with foreign companies such as US-based private explorer Liberty Petroleum.

Civil society organisations have called on the government to implement robust governance measures to prevent mismanagement and political disputes over oil revenues.

“There must be transparency, accountability, and equitable resource sharing,” one analyst was cited by Shabelle Media as saying, warning that without firm safeguards, oil could become a source of political tensions rather than economic progress.

Turkey has emerged as a leading energy partner for Somalia, supporting Mogadishu’s efforts to develop long-untapped oil and gas reserves. In March 2024, Ankara signed a cooperation agreement covering offshore exploration and development, with the potential for production rights.

A subsequent deal in October saw Turkey’s state-owned TPAO conclude an onshore hydrocarbon accord with the Somali Petroleum Authority, broadening its role to include land blocks alongside earlier offshore arrangements.

The Turkish seismic vessel Oruç Reis was deployed to Somali waters in late October 2024 under an agreement between Ankara and Mogadishu. It carried out 3D surveys across three offshore blocks covering about 4,464 km², in a mission that lasted roughly 234 days before the ship departed Mogadishu in June 2025. Officials in Somalia hailed the campaign as a key step in preparing acreage for potential drilling. No firm spud date has been announced.

In October 2022, Somalia finalised a petroleum exploration agreement with US-based Coastline Exploration for seven offshore blocks, following an earlier accord earlier in the year. Coastline paid a $7mn signature bonus into the Somali Central Bank under the deal, which the company described as one of the most advanced contracts in the country’s oil sector. The explorer has said it plans to run 3D seismic surveys before moving to drilling, though no firm timetable has yet been set.