The Turkey-Somalia hydrocarbons deal was published after its April 22 submission to the Turkish Parliament for ratification.
The agreement outlines Turkey’s expanding role in Somalia’s energy and defense sectors, offering extensive operational and financial privileges.
Signed on March 7, 2024, in Istanbul, the deal was made public during parliamentary review.
It’s part of Turkey’s Africa Strategy, which sees Somalia as key due to its location and energy potential.
Somalia holds an estimated 30 billion barrels of offshore hydrocarbons and 6 billion cubic meters of natural gas.
Officials say improved Somali stability makes it viable for investment and deeper energy ties.
Under the deal, Turkey is exempt from signature, development, and production bonuses, and administrative fees.
Turkey can recover up to 90% of annual oil or gas output as cost petroleum, before profit sharing.
Somalia’s royalty share is capped at 5%, with exemptions for oil consumed or reinjected during operations.
Turkey has full export rights and keeps all international sales revenue from its oil and gas share.
It may assign its rights to third parties without setting up a company or office in Somalia.
The agreement includes protections under the ICSID Convention, with arbitration to take place in Istanbul if disputes arise.
Turkey can deploy its own security forces, with related costs considered recoverable from petroleum revenues.
This aligns with a presidential decree allowing Turkish troops and navy vessels in Somalia for two years.
The Oruç Reis research vessel and five navy ships will begin operations in Somali waters by September 2025.
The deal builds on a February 2024 MOU granting Turkey access to Somalia’s exclusive economic zone.
Turkey pledged support for Somali defense development, especially the navy.
Somalia will give Turkey up to 30% of energy revenue based on project contributions.
While reaffirming Somali sovereignty over resources, the deal grants Turkey a key commercialization role.
Turkish leaders call the deal a step toward regional influence and energy diversification.
Opposition voices warn of risks, including overuse of costly Turkish vessels redirected from the Mediterranean.
Concerns remain over potential fallout with Ethiopia, despite recent diplomatic efforts to ease tensions.
A December 2024 Ankara agreement granted Ethiopia port access via Somalia, improving ties but lacking follow-through.
