By: Mr. Ahmed Dalmar
Oil exploration in Somalia is entering a new phase. Once seen as too risky for investors or merely a long-term possibility, the country is now attracting major international players. Interest is no longer theoretical, it is active and operational. This article examines the past, present, and future of hydrocarbon exploration in Somalia, with a particular focus on central Somalia.
Past
From the 1950s until 1990, Somalia attracted significant exploration interest, mainly from Western companies, especially American and Italian firms. During this period, extensive two-dimensional (2D) seismic surveys were conducted, followed by the drilling of several exploratory wells, both onshore and offshore.
One of the main focus areas was the Somali Embayment in Central Somalia (today’s Galmudug State), which has long been considered highly prospective for hydrocarbons. The companies involved in these early seismic surveys and drilling activities remain under force majeure, meaning they have continued to hold exploration rights since the outbreak of the civil war in 1991.
In 1957, the American company Sinclair drilled the Hobyo (Obbia)-1 onshore well near Hobyo. This was followed in 1982 by the Mareeg (Mereg)-1 offshore well, drilled along the Mareeg coast. Both wells, however, were dry. At the time, major technical and technological limitations likely contributed to these outcomes.
Present
More recently, Somalia has witnessed renewed offshore activity. The Turkish Petroleum Corporation (TPAO) has begun operations aimed at hydrocarbon discovery. This phase officially started with the arrival of the Turkish research vessel Oruç Reis in Mogadishu in late October 2024.
The vessel was tasked with conducting seismic surveys for oil and natural gas across three offshore areas, each covering approximately 5,000 square kilometres. Earlier that year, Türkiye and Somalia signed memorandums of understanding under which Turkish Petroleum, Türkiye’s national oil company, obtained exploration licenses for these blocks.
The seismic campaign covered three offshore blocks along the coasts of Hobyo, Harardhere, and Mareeg—blocks 142, 153, and 152, respectively. High-resolution three-dimensional (3D) seismic data acquisition was completed in June 2025. The data are currently being interpreted, with results expected to be announced in late 2025 or early 2026 in Ankara.
Turkey’s growing role in Somalia’s hydrocarbon sector broadly aligns with U.S. strategic interests, even though no formal cooperation agreements exist. Under the reported terms, TPAO was granted extensive onshore and offshore rights, including cost recovery of up to 90%, leaving Somalia with a limited share of benefits. Notably, the United States—once a key holder of exploration rights in some of these blocks—now appears absent from this phase of activity. Many aspects of the deal remain unclear and raise important questions.
Future
Turkish officials have also announced plans to expand exploration activities onshore starting in 2026. While specific locations have not been officially confirmed, some activity has been reported around the Hobyo (Obbia)-1 well in the Galmudug region, previously drilled by Sinclair. Exploration may also extend to the newly formed Northeast State.
In April 2025, Somalia’s Ambassador to the United States, Dahir Hassan Arab, announced that Somalia was officially open for oil exploration and invited U.S. companies to invest. This followed the lifting of force majeure in the Nugaal Valley. Notably, this announcement came before the formal approval of the Northeast State as a federal member state in late July 2025.
At the same time, hydrocarbon, mineral, and energy activities continue in Somaliland and Puntland, where these regions operate as independent authorities. They pursue agreements with international partners, often aligned more closely with the United Arab Emirates than with Turkey, while the United States remains involved on both sides.
Gold mining in northern Somalia is reportedly exporting millions of dollars’ worth of gold annually, largely to the U.A.E.
At the national level, Somalia still lacks a comprehensive resource-sharing framework that includes the Federal Government, all Federal Member States, and Somaliland. These fragmented and competing agreements risk deepening political divisions, undermining national unity, and creating serious obstacles to sustainable economic development—potentially leading to a classic resource curse.
Mr. Ahmed Dalmar is a Consultant and Researcher in Petroleum and Mineral Resources.