Washington (Somalia Today) — Somalia’s oil minister says international energy companies, including firms from the United States, are showing growing interest in the country’s oil sector as Mogadishu prepares to unveil new offshore exploration results.
Officials say fresh drilling could unlock long-promised petroleum wealth, even as the government vows to crack down on illegal mining at home.
Petroleum and Mineral Resources Minister Dahir Shire Mohamed said on Friday that several major companies have approached his ministry about exploring Somali acreage. They would work alongside existing Turkish-led surveys.
He reaffirmed that preliminary data point to oil deposits offshore. He also promised that “by the end of this year, we will announce the results of the recent exploration survey conducted in our seas.”
“There are big companies that want to explore for oil in our country. There is no doubt that our country has oil,” Dahir Shire said. At the same time, he warned that individuals and companies extracting minerals without licences in some regions would face legal action.
US firms enter the Somali play
Somalia has been courting foreign investors for years, but U.S.-linked independents have become increasingly visible.
In 2022, Mogadishu signed a petroleum exploration agreement for seven offshore blocks with Coastline Exploration, a Houston-based company. The deal granted Coastline the right to conduct offshore oil and gas exploration following a lengthy approval process.
That agreement marked a turning point for Somalia’s offshore push. It signalled that US capital was willing to take an early risk in a high-potential but fragile state.
Industry reports describe Coastline as leading a renewed charge into Somalia’s deepwater. The company has been meeting with potential partners regarding its exploration programme.
A second U.S.-based player, Liberty Petroleum, followed in March 2024 with three production-sharing agreements, securing deepwater Blocks 131, 190, and 206 through its subsidiary, Petro Quest Africa. The contracts grant Liberty a multi-year exploration period to conduct seismic work and assess drilling prospects off Somalia’s coast.
Somali officials say the presence of Coastline and Liberty, alongside interest from European, Asian, and Middle Eastern firms, supports their message that the country is “open for business” in the energy sector.
However, analysts note that security risks, political disputes, and limited infrastructure mean any commercial production is still several years away, even if significant discoveries are confirmed.
Turkish deals reshape the landscape
The minister’s comments come as Turkey deepens its role in Somalia’s hydrocarbons sector. In March 2024, Ankara and Mogadishu signed an offshore oil and gas cooperation agreement that allows Turkish Petroleum to explore and potentially produce in selected land and sea blocks.
That cooperation has since expanded. Turkish officials say the seismic research vessel Oruç Reis will conduct extensive surveys off Somalia under a plan that could last several months and cover thousands of square kilometres of maritime territory.
In parallel, an onshore deal signed in 2025 gives Turkish Petroleum access to large tracts of Somali territory for oil and gas exploration.
Supporters in Mogadishu argue that Turkish financing, technical capacity, and security cooperation make Ankara a uniquely valuable partner.
Critics, including some Somali commentators and foreign analysts, warn that arrangements granting strong rights to a single partner could limit competition and weaken Somalia’s bargaining position over time.
For Dahir Shire’s ministry, rising US interest and Turkish commitments are not in conflict but part of a broader strategy to diversify partners.
Officials close to the sector say bringing in multiple operators could help spread risk, encourage technology transfer, and give Somalia more leverage when negotiating future production terms.
Law, governance, and illegal mining
Alongside his upbeat message on oil, Dahir Shire used his latest remarks to highlight what he called the “illegal exploitation” of minerals in parts of the country.
He said unlicensed individuals and companies were operating in some regions and pledged to “take legal action against those involved,” without naming specific sites or actors.
The warning reflects wider concern that artisanal and small-scale mining activity has expanded faster than the state’s oversight capacity.
In gold-bearing areas and other resource zones, local authorities, business networks, and armed groups have all sought to profit from extraction, prompting fears that unregulated mining could fuel corruption and environmental damage.
By contrast, oil and gas projects rest on the 2020 Somali Petroleum Law, which created the Somali Petroleum Authority as the primary regulator for licensing and production-sharing contracts.
The law sets out revenue-sharing arrangements between the federal government and member states. It is meant to ensure that petroleum resources are managed in the public interest.
International partners, including the United States, have urged Somalia to strengthen transparency, publish contracts, and clarify how future oil revenues will be shared between the centre and the regions.
For now, civil society groups say there is still limited public access to key agreements and little clarity on how communities in producing areas would benefit.
High stakes for a fragile state
Somalia’s leaders see hydrocarbons as a potential lifeline for a country emerging from decades of conflict and state collapse. They argue that, if managed well, oil and gas revenues could help fund security forces, rebuild infrastructure, and reduce dependence on foreign aid.
However, many Somali analysts warn that rushing into deals before institutions are fully ready could deepen tensions and fuel new grievances.
Disputes over maritime boundaries, federal–state relations, and control of licensing have already surfaced, with regions such as Somaliland and Puntland asserting their own authority over resources.
For now, the government is betting that a more transparent legal framework, stronger regulators and a widening pool of investors — including growing US interest in the oil sector — will reassure both citizens and markets.
Somalia will face the real test when it unveils the exploration results and decides how, and with whom, to turn potential into production.
