Somalia’s energy opportunities are expected to be a key feature of this year’s African Energy Week (AEW): Invest in African Energies conference, with Dahir Shire Mohamed, the country’s Minister of Petroleum and Mineral Resources, and Abdulkadir Aden Mohamud, CEO of Chairman of the Somali Petroleum Authority, speaking. Their participation comes as Somalia targets new exploration and production frontiers, striving to identify, develop and unlock value from its underexplored hydrocarbon basins.

AEW: Invest in African Energies 2025 presents a strategic platform for the Ministry of Petroleum and Mineral Resources and the Somali Petroleum Authority to engage with potential investors. As the premier meeting place for the African energy sector, the event unites leading exploration and production firms with African governments and policymakers, with a view to driving investment across the entire energy sector and its value chain. The participation of the Somali delegation not only reflects the country’s commitment to attracting investment in its untapped energy prospects, but its drive to engage with regional and global counterparts.

AEW: Invest in African Energies is the platform of choice for project operators, financiers, technology providers and government, and has emerged as the official place to sign deals in African energy. Visit www.AECWeek.com for more information about this exciting event.

As a largely underexplored oil and gas market, Somalia offers lucrative prospects for explorers seeking play-opening discoveries in frontier markets in Africa. While initial exploration efforts halted in the 1980s, a renewed drive by the Ministry of Petroleum and Mineral Resources to attract investment and innovation across oil and gas basins is creating promising avenues for global companies and regional neighbors. Notably, in March 2024, Somalia signed an agreement with Turkey granting it exclusive rights to explore and produce hydrocarbons in three offshore blocks. Under the terms of the agreement, Turkish vessel Oruç Reis will be deployed to identify exploration and drilling opportunities over an area covering 5,000 km². The first phase of exploration comprises the acquisition of 3D seismic data to identify potential oil deposits. As of October 2024, the seismic research vessel was dispatched to Somalia.

The development is just one of many agreements signed by companies seeking forays into Somalia’s oil and gas frontier. Turkey’s state-owned energy company TPAO also signed a deal with the Somali government for joint onshore exploration in Somalia. The agreement will see TPAO carry out oiland gas research operations inland Somalia. Additionally, an agreement was signed between the Somali government and Liberty Petroleum in 2024, granting the company exploration rights for three offshore blocks within the country’s deepwater zone.

These agreements follow a deal signed between the Somali government and Coastline Exploration in 2022 for seven blocks. Coastline Exploration committed to conducting a 3D seismic campaign, targeting new drilling prospects. A 2D seismic acquisition program led by TGS in 2014 showcased the potential for up to 30 billion barrels of crude across 15 blocks in the country, underscoring the level of potential across the offshore margin. To unlock this potential, more investment in needed in both seismic acquisition and frontier drilling. AEW: Invest in African Energies 2025 will be a strategic platform for advancing expenditure across Somali’s market, with the Ministry of Petroleum and Mineral Resources set to outline commercial prospects.

Meanwhile, as the country’s petroleum regulator, the Somali Petroleum Authority is at the helm of attracting investment across Somalia’s exploration plays. The organization has been engaging with potential operators in recent years, revising existing regulation and promoting acreage with a view to entice new players to the market. Notable developments include the revision of the country’s Production Sharing Contract model and Tender Protocol, both of which were designed in parallel with the country’s launch of its 2020 licensing round. Fiscal terms associated with these documents reflect the government’s intention to attracting new capital to the market. During AEW: Invest in African Energies 2025, the Somali Petroleum Authority is expected to shed light on these policies.

“As one of Africa’s final frontiers for oil and gas exploration, Somalia offers significant opportunities for exploration and production companies. Recent agreements signal a renewed push by international stakeholders to unlock the potential of Somalia’s oil and gas market, while regulatory developments led by the Ministry of Petroleum and Mineral Resources and the Somali Petroleum Authority reflect the commitment of the government to working with investors,” states NJ Ayuk, Executive Chairman, African Energy Week.