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A newly disclosed agreement between Turkey and Somalia has revealed that Ankara has secured rights to 90% of Somalia’s annual oil and gas output, sparking debate over the implications of the deal. The document, submitted to the Turkish Parliament for ratification on April 22, 2025, outlines extensive privileges granted to Turkey in Somalia’s energy sector, reinforcing its strategic interests in the Horn of Africa.
Signed on March 7, 2024, in Istanbul by Turkish Energy Minister Alparslan Bayraktar and Somali Petroleum Minister Abdirizak Omar Mohamed, the agreement is part of Turkey’s broader Africa Opening Strategy. Somali territory is estimated to contain 6 billion cubic meters of proven natural gas reserves and up to 30 billion barrels of offshore hydrocarbon potential, making it a lucrative prospect for foreign investment.
The deal grants Turkey significant financial and operational advantages, including exemptions from signature, development, and production bonuses—standard industry payments typically required for exploration rights. Additionally, Turkish entities are not obligated to pay surface or administrative fees, a deviation from common oil agreements.
One of the most controversial provisions allows Turkey to recover up to 90% of the petroleum it produces each year as “cost petroleum,” meaning it can claim the majority of extracted resources to cover exploration and production expenses before profits are shared. Somalia’s royalty share is capped at just 5%, with further exemptions for petroleum reinjected into reservoirs or consumed during operations.
Turkey has also secured unrestricted rights to export its share of oil and gas at international market prices, retaining all revenue earned abroad from sales. This arrangement effectively removes Somalia from the financial flow of Turkey’s share, raising concerns about the country’s ability to benefit from its own natural resources.
The agreement further grants Turkey broad discretion in assigning its rights under the deal, allowing Turkish entities to transfer their stakes without establishing a company or office in Somalia. Arbitration for disputes will take place in Istanbul, reinforcing Turkey’s control over legal proceedings related to the agreement.
The deal has sparked mixed reactions. Turkish officials argue that the agreement will enhance bilateral cooperation, provide technical expertise, and secure energy resources critical to Turkey’s maritime trade and energy security. Somali authorities, however, have faced criticism over the terms, with concerns that the agreement disproportionately favors Turkey while limiting Somalia’s ability to capitalize on its own resources.
Opposition voices warn that the deal could set a precedent for foreign exploitation of Somalia’s natural wealth, undermining national sovereignty. Some analysts have also raised concerns about the potential fallout with Ethiopia, which has sought access to Somali ports for its own energy needs.
As Turkey prepares to deploy its Oruç Reis research vessel and five navy ships to Somali waters by September 2025, the agreement signals deeper military and economic ties between the two nations. Turkey has pledged support for Somalia’s defense development, particularly its navy, as part of the broader partnership.
The unfolding debate over the deal highlights the complexities of resource management in Somalia, where foreign investment is both a necessity and a potential risk. While the agreement promises infrastructure development and security cooperation, questions remain about whether Somalia will truly benefit from its vast energy reserves.