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Somaliland President Abdirahman Mohamed Abdullahi Irro has announced that drilling for crude oil in Somaliland is expected to begin by 2027, raising cautious optimism about the territory’s long-discussed oil ambitions after years of exploration and delays. Speaking at the Somaliland Mining Expo in Hargeisa on Monday, the president said preparations are moving forward and that drilling could even start earlier if technical and contractual requirements are completed ahead of schedule.
According to Irro, the government has set 2027 as the latest possible start date for oil drilling, but there is a possibility that operations could begin in 2026 if ongoing preparations progress faster than expected. He described the move as a major step toward turning Somaliland’s natural resource potential into tangible economic benefits.
Oil exploration in Somaliland has been ongoing for more than a decade, following agreements signed with several foreign companies. During this period, geological surveys and seismic studies have been carried out across multiple onshore blocks. Officials say these studies have identified promising underground structures that could contain oil, although no commercially proven discoveries have yet been confirmed.
One of the most notable companies involved in Somaliland’s oil exploration efforts is London-listed Genel Energy. The company holds interests in several exploration blocks and has, for years, spoken about plans to drill the Toosan-1 exploration well. However, Genel Energy has consistently emphasized the need for regulatory readiness, technical planning, and favorable operating conditions, rather than committing to a specific drilling timeline.
The president’s remarks come at a time when Somaliland is actively seeking to attract foreign investment, particularly in its natural resources sector. Earlier this year, Irro completed a three-day official visit to the United Arab Emirates, where discussions focused on strengthening economic cooperation. Talks included potential investment in oil and gas, mining, agriculture, and job creation. Somaliland officials said the meetings involved senior UAE leaders and government institutions, highlighting the territory’s intention to deepen economic ties with Gulf partners.
The UAE already plays a significant role in Somaliland’s economy, particularly through major infrastructure projects such as the Berbera port. Somaliland authorities see oil and mineral development as a way to build on this existing partnership while diversifying the economy and increasing government revenue.
Government officials argue that Somaliland has established petroleum laws and regulatory institutions designed to support responsible exploration and investment. They say these frameworks are meant to provide clarity and protection for investors while ensuring that any future oil development benefits the local population.
Despite the optimism, the sector continues to face legal and political challenges. Somaliland declared independence from Somalia in 1991 but has not received international recognition. Somalia’s federal government maintains that it has sole authority over oil and gas licensing across the entire country. In 2022, Mogadishu publicly rejected petroleum rights claimed by companies operating under licenses issued by Somaliland authorities, adding another layer of uncertainty for investors.
Energy analysts describe Somaliland as a frontier region for hydrocarbons, meaning it has limited drilling history and higher levels of risk compared to established oil-producing areas. Fewer than a dozen exploration wells are believed to have been drilled in the region so far. Experts caution that while drilling is an important milestone, it does not guarantee the discovery of oil in quantities that are commercially viable.
Somaliland officials say successful oil development could transform the territory’s economy by creating jobs, increasing public revenue, and funding essential services. However, analysts stress that moving from exploration to production will depend on sustained investment, stable security conditions, and the ability to manage competing legal claims over resource ownership. For now, the government’s announcement signals intent and ambition, while the outcome will ultimately depend on what lies beneath the ground and how challenges above it are handled.