The Horn of Africa, Somalia is pushing so hard to attract investments into its oil and gas sector.
Somalia’s renewed drive to attract investment is seen as an effort aimed at positioning itself as one of Africa’s final frontiers for hydrocarbon exploration.
Exploration of oil and gas first started in Somalia back in the 1980s.
And the renewed drive by the country’s Ministry of Petroleum and Mineral Resources to attract investment and innovation across oil and gas basins is creating promising avenues for global companies.
Somalia’s energy sector has seen a resurgence in interest following a series of agreements with international partners.
In March 2024, Somalia signed a landmark deal with Turkey granting exclusive rights to explore three offshore blocks, with the Turkish seismic vessel Oruç Reis deployed to survey 5,000 km².
Turkey’s state-owned TPAO also inked a separate agreement for joint onshore exploration.
Other recent deals include Liberty Petroleum’s acquisition of exploration rights for three deepwater blocks in 2024, and Coastline Exploration’s 2022 agreement covering seven blocks.
These developments build on earlier seismic studies, including a 2014 campaign by TGS that identified potential reserves of up to 30 billion barrels of crude across 15 offshore blocks.
To support this investment drive, the Somali Petroleum Authority has revised its Production Sharing Contract model and Tender Protocol, aligning fiscal terms with international standards and enhancing transparency.
These reforms are expected to be showcased during the African Energy Week 2025: Invest in African Energies 2025 conference, which serves as a premier platform for African governments and energy firms to forge strategic partnerships.
The country’s Minister of Petroleum and Mineral Resources, Dahir Shire Mohamed, and Somali Petroleum Authority chief executive Abdulkadir Aden Mohamud are set to lead a high-level delegation to the conference that kicks off in Cape Town next month.
“As one of Africa’s final frontiers for oil and gas exploration, Somalia offers significant opportunities for exploration and production companies,” said NJ Ayuk, Executive Chairman of African Energy Chamber, organisers of the conference.
“Recent agreements signal a renewed push by international stakeholders to unlock the potential of Somalia’s oil and gas market.”
Source:Africa Publicity