Turkey has announced a landmark oil discovery in East Africa, confirming that two of the three oil blocks it operates in Somalia hold commercially viable reserves estimated at up to 20 billion barrels of crude oil.

The breakthrough marks a major step in Turkey’s rapidly expanding energy ambitions across the East African region and deepens its strategic ties with Somalia.

According to the Somali Guardian, while two of the pilot blocks have yielded significant results, exploration on the third block remains underway, with commercial quantities expected to be confirmed by August.

The discovery comes just weeks after Turkey and Somalia signed a shared oil development agreement, granting Turkey sweeping control over Somalia’s hydrocarbon sector.

Somalia’s estimated energy reserves include up to 30 billion barrels of offshore oil and around 6 billion cubic meters of natural gas, making it a key target for Ankara’s global energy strategy.

On March 7, 2024, Turkish Energy Minister Alparslan Bayraktar and Somali Petroleum Minister Abdirizak Omar Mohamed signed a bilateral hydrocarbon agreement in Istanbul, drawing international attention for its unusually favorable terms for Turkey.

Under the deal, Turkish entities are exempted from paying standard upfront costs such as signature bonuses and administrative fees, effectively giving Turkey free access to Somali hydrocarbon blocks.

More strikingly, Turkey can recover up to 90% of the annual oil and gas production as “cost petroleum” before sharing any profits, a figure far above international industry norms.

Somalia’s government revenue is further limited by a 5% royalty cap, excluding any petroleum used or reinjected during operations.

The agreement also gives Turkey full rights to export its share of hydrocarbons at global market prices and retain all earnings abroad, leaving Somalia without control over the financial flows.

Turkey has the right to transfer its exploration and production rights to third parties without Somali oversight or the need to establish a domestic presence.

Critics have raised alarms over Somalia’s limited long-term benefit from such sweeping concessions.

However, Somali President Hassan Sheikh Mohamud has firmly defended the deal, calling it a historic milestone that will finally unlock the country’s untapped energy sector.

“Oil exploration is already happening offshore,” President Mohamud said.

“Now, with this deal, exploration will begin along Somalia’s coastal areas.”

He emphasized that Turkey was not given preferential treatment but was simply the first country to show a genuine commitment to invest in Somalia’s energy future.

“This is not about favoring Turkey,” he added.

“Rather, Turkey is the first to step up and show real commitment to invest.”

Before the collapse of Somalia’s central government in 1991, major international oil and gas firms had signed exploration deals in the country, only to pull out as civil war and instability took hold.

Experts caution that even with Turkey’s involvement, fully unlocking Somalia’s resources will take years, as thorough exploration processes typically span three to five years before production can begin.