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    Somalia’s Oil Future Begins Now: What the Turkey Deal Really Means – Somali Magazine issue 49

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    Somali Magazine - People's Magazine

    There has been a great deal of discussion recently about the hydrocarbons agreement between Somalia and Turkey. As someone who has served in both legislative and ministerial roles, I believe it is important to bring clarity to this issue and highlight what this agreement truly means for the Somali people.

    Turkey’s Investment Reflects Shared Risk and Responsibility Under the agreement, Turkey is entitled to recover up to 90% of the oil and gas revenues in the early stages. While this may sound one-sided at first glance, it reflects the significant financial burden Turkey is taking on — including exploration, drilling, infrastructure, and security. These are high-cost undertakings that Somalia currently cannot manage on its own. Somalia Still Earns From Day One Despite the cost recovery structure, Somalia is guaranteed a 5% royalty from the very beginning. This ensures our country benefits immediately, even before any major revenue is generated. Long-Term National Benefits Will Grow Once Turkey has recovered its investment, Somalia’s share of the revenue will increase significantly. This model — known globally as a production sharing agreement — is widely used by developing nations that need foreign capital and technology to tap into their natural resources. A Common Global Practice Agreements like this are not new. Many countries across Africa, Asia, and the Middle East have adopted similar contracts during the early stages of resource development. While no agreement is without flaws, these types of partnerships are often necessary stepping stones toward building domestic capacity and attracting future investment. Somalia Turkey

    Our Path to Economic Growth Starts Here Somalia is at a critical juncture. This agreement marks the beginning of our entry into the global energy market. It may not bring instant wealth, but it builds credibility, infrastructure, and a foundation for long-term development. More importantly, it sends a message to the world: Somalia is open for business and committed to shaping its economic future. As a Somali politician, I believe that transparency, accountability, and national interest must guide all future agreements. This is just the beginning. It is our collective responsibility — as leaders, stakeholders, and citizens — to stayinformed, ensure fairness, and negotiate even better deals in the future. Let us move forward with unity, vision, and purpose. Our natural resources belong to the Somali people — and with wisdom and patience, they can fuel a brighter, stronger Somalia for generations to come.

     

    Somalia Turkey

    By Mahad Hussein Ahmed,

    Co-Founder & CEO, Somali American Spotlight,

    Somali Politician; Former Member of Galmudug State Parliament,

    Former Minister of Public Works, Reconstruction, and Housing, Galmudug State.

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