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Somalia and Azerbaijan have signed a groundbreaking energy agreement, marking a significant step toward strengthening their cooperation in oil, gas, and renewable energy development. The Memorandum of Understanding (MoU) was signed in Baku, Azerbaijan, on February 27, 2025, by Somalia’s Minister of Petroleum and Mineral Resources, Dahir Shire Mohamed, and Azerbaijan’s Minister of Energy, Parviz Shahbazov.
The agreement is designed to enhance knowledge sharing, attract investment, and develop vital energy infrastructure in Somalia. By tapping into Azerbaijan’s extensive experience in oil and gas exploration, transportation, and global market reach, Somalia aims to accelerate its energy sector’s growth and modernization.
This deal is especially significant for Somalia, which is working to rebuild its energy infrastructure after decades of underdevelopment. The country has vast untapped hydrocarbon reserves, and partnerships with experienced energy producers like Azerbaijan could play a crucial role in unlocking its potential. Minister Mohamed emphasized the importance of this collaboration, stating that Somalia is eager to learn from Azerbaijan’s expertise and establish a long-term partnership that supports its economic ambitions.
Beyond fossil fuel exploration, the two nations also signed a separate agreement focused on green energy development. This initiative will promote renewable energy projects, facilitate technology transfer, and support efforts to diversify Somalia’s energy mix. Joint forums, technical workshops, and training programs will be established to build capacity and encourage foreign investment in the sector.
Azerbaijan, a key oil and gas exporter, has been actively expanding its global partnerships and sees Somalia as a strategic ally in the energy sector. Minister Shahbazov highlighted Azerbaijan’s commitment to supporting emerging energy markets, noting that this agreement is just the beginning of future collaborations between the two countries.
As part of the deal, Somalia and Azerbaijan will organize joint industry events and policy discussions to explore further opportunities for cooperation. The MoU is expected to lay the foundation for long-term bilateral relations, strengthening both nations’ positions in the global energy market.
This partnership arrives at a crucial time for Somalia as it seeks to attract international investors and modernize its energy sector. With the backing of an established energy leader like Azerbaijan, Somalia is poised to make significant strides in developing its oil, gas, and renewable energy industries.