A comprehensive hydrocarbons agreement between Turkey and Somalia has been made public, following its submission to the Turkish Parliament for ratification on April 22. This agreement marks a significant deepening of the energy and defense ties between the two countries.
The agreement, officially titled “Agreement Between the Government of the Republic of Türkiye and the Federal Government of the Federal Republic of Somalia in the Field of Hydrocarbons,” was signed on March 7, 2024, in Istanbul. Turkish Energy Minister Alparslan Bayraktar and Somali Petroleum Minister Abdirizak Omar Mohamed were the signatories. The document was only recently made public as part of the parliamentary process.
The deal is part of Turkey’s broader Africa Opening Strategy, which identifies Somalia as a priority due to its strategic maritime position and untapped energy resources. Somalia is believed to have significant oil and gas reserves, including 6 billion cubic meters of proven natural gas and up to 30 billion barrels of potential offshore hydrocarbons.
Turkish authorities see Somalia as an attractive destination for energy investment, especially as the country’s political stability improves. The agreement is expected to strengthen bilateral cooperation, with Turkey sharing technical expertise while securing access to critical energy resources, which are vital for Turkey’s maritime trade and energy security goals.
One of the most notable features of the agreement is its favorable terms for Turkey. For instance, Turkish companies are not required to pay upfront costs, such as signature, development, or production bonuses, and are exempt from surface or administrative fees. This is a significant deviation from industry norms, where host countries typically demand substantial initial payments for exploration rights.
Turkey has also secured a cost recovery mechanism that allows it to recover up to 90% of the petroleum it produces each year as “cost petroleum,” meaning Turkey can cover exploration and production expenses before profits are shared.
Meanwhile, Somalia’s share of the production is capped at just 5%, with royalties either paid in cash or kind but excluding any petroleum reinjected into the reservoir or used during operations.
In terms of operational freedom, Turkey has been granted the right to export its share of oil and gas at international market prices. Additionally, Turkish entities are allowed to retain all revenue from the sale of these resources, whether from exports or domestic transactions, effectively removing Somalia from the financial flow of Turkey’s share.
The agreement also allows Turkish Petroleum Corporation (TPAO) or any other designated Turkish entity to transfer its rights to third parties without the need to establish a local company or office in Somalia. This provision offers flexibility in forming partnerships and bringing in subcontractors without bureaucratic obstacles.
Furthermore, the agreement provides investment protections, with Turkish operations in Somalia covered under the 1966 Convention on the Settlement of Investment Disputes (ICSID). Any disputes related to the agreement can be resolved through international arbitration, with panels based in Istanbul, giving Turkey significant control over any legal issues.
Turkey’s military presence in Somalia is also addressed in the agreement. The document permits Turkey to take security measures, with related expenses counted as recoverable petroleum costs. Additionally, a presidential decree submitted to the Turkish Parliament seeks approval for deploying Turkish naval and military personnel to Somalia for counterterrorism, anti-piracy, and protection of Turkish exploration missions.
Starting in September 2025, Turkey will send the research vessel Oruç Reis, accompanied by five Turkish warships, to begin exploration activities in Somali maritime zones. Turkey aims to safeguard Somalia’s natural resources and contribute to regional security, particularly in the Gulf of Aden and the Arabian Sea.
This agreement builds on a previous memorandum of understanding signed in February 2024, which granted Turkey privileged access to Somalia’s special economic zone in exchange for assistance in developing Somali defense capabilities, particularly its navy.
Somali officials stated that Turkey will receive up to 30% of the revenue from oil and gas extracted in Somali waters, proportional to its contributions to the projects. The hydrocarbons agreement reaffirms Somalia’s sovereignty over its resources while recognizing Turkey’s role in their extraction and commercialization.
While Turkish officials view the deal as a step toward expanding regional influence, domestic critics have raised concerns. Yankı Bağcıoğlu, deputy chair of Turkey’s opposition Republican People’s Party (CHP), warned that the country’s costly deep-sea vessels, originally intended for exploration in the eastern Mediterranean, have been redirected due to foreign policy failures. He also expressed concerns about potential diplomatic tensions with Ethiopia, which has strained relations with Somalia.
The deal comes amid improving ties between Somalia and Ethiopia, with both countries recently reaching an agreement on Ethiopia’s access to a commercial port in Somalia. Although official visits and diplomatic missions have resumed between the two countries, technical discussions are still ongoing.
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