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Turkey Gains 90% of Somalia’s Oil and Gas Output in Major Energy Deal

by Andrew Rogers
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Turkey has signed a landmark deal with Somalia, giving it rights to 90% of the oil and gas produced from joint operations. The agreement, signed on March 7, 2024, in Istanbul, highlights growing energy and defense cooperation between the two countries. It was made public after being submitted to the Turkish Parliament for ratification on April 22, 2025. This deal is part of Turkey’s wider strategy to strengthen its role in Africa, especially in resource-rich Somalia.

A new chapter in Turkey–Somalia relations

The deal, officially called “Agreement Between the Government of the Republic of Türkiye and the Federal Government of the Federal Republic of Somalia in the Field of Hydrocarbons”, gives Turkey large financial and operational benefits. It was signed by Turkey’s Energy Minister Alparslan Bayraktar and Somalia’s Petroleum Minister Abdirizak Omar Mohamed.

According to documents shared with the Turkish Parliament, this agreement is a major part of Turkey’s “Africa Opening Strategy”. Somalia, with its long coastline and rich natural resources, is seen as a key strategic partner.

What Turkey will get

Turkey will receive 90% of the oil and gas output from joint operations. Somalia will get only 10%. The deal removes the need for Turkey to pay standard industry costs like signature bonuses, development fees, or administrative charges.

Turkish companies will also be able to recover up to 90% of the total yearly production as “cost petroleum” before sharing profits with Somalia. In addition, Somalia’s earnings are capped with a 5% royalty, and this does not apply to fuel used during production or reinjected into the ground.

Full export rights for Turkey

Turkey can sell its share of oil and gas at global market prices with no limits. It can keep all the money made from local sales or exports.

Also, Turkey’s national oil company (TPAO) or any other Turkish company can transfer its stake to others without opening a local office or forming a Somali-based business. This makes it easier for Turkey to involve private partners or contractors.

Legal and security guarantees

The deal protects Turkey’s interests with strong legal terms. Any dispute will go to international arbitration in Istanbul, under the ICSID Convention.

Turkey is also allowed to set up its own security systems to guard its energy operations in Somalia. The costs of these systems will be counted as part of Turkey’s recoverable expenses from the oil and gas output.

Military presence tied to energy

Turkey is also planning to send military and naval forces to Somalia for two years, starting in September 2025. This was proposed in a presidential decree that went to Parliament along with the energy deal.

The Turkish military will support anti-terror operations, protect oil sites, and prevent piracy. The research ship Oruç Reis will begin exploring Somali waters later in 2025. It will be protected by five Turkish navy warships.

Huge energy reserves in Somalia

Somalia may hold up to 30 billion barrels of oil in its offshore fields. It also has about six billion cubic meters of natural gas. These numbers make Somalia one of Africa’s most promising places for oil and gas exploration.

Turkey wants to use this deal to reduce its need to import energy and to grow its influence in Africa and the global energy market.

What comes next

The deal will only become official after both countries finish their legal steps and notify each other through diplomatic channels.

Each side has agreed to move quickly so the agreement can start as soon as possible.

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