Turkey Begins Ultra-Deepwater Oil Drilling in Horn of Africa
- Turkey's state-owned energy company, TPAO, has begun drilling operations in Somalia's offshore blocks as part of a strategic exploration and production agreement signed in March 2024.
- The agreement, which unlocks Somalia's potential of an estimated 30 billion barrels of oil, has been criticized for being lopsided, non-transparent, and potentially illegal under Somali law, with Turkey reportedly allowed to recover up to 90% of operational costs before profit sharing.
- Proponents argue the deal is a necessary step because Somalia lacks the independent financial capacity, technology, and security infrastructure to undertake the high-cost, high-risk ultra-deepwater exploration alone.
Back in March 2024, the Federal Government of Somalia and the Republic of Türkiye signed a major offshore hydrocarbon exploration and production agreement in Istanbul. This strategic partnership allowed Turkey’s state-owned energy company, Turkish Petroleum Corporation (TPAO), to conduct 3D seismic surveys and drill for oil and gas in both offshore blocks and three land blocks covering roughly 16,000 square kilometers, with the additional agreement for onshore exploration signed in early 2025.
Turkey wasted little time, dispatching the seismic research vessel Oruç Reis to Somalia in October 2024 to conduct offshore oil and gas exploration. The vessel completed a 234-day mission, collecting 3D seismic data over 4,464 square kilometers across three offshore blocks before returning to Turkey in July 2025. And now, Turkey has taken yet another giant step towards unlocking the Horn of Africa’s energy potential, with Turkey’s drilling ship Cagri Bey beginning drilling operations in Somalia on Feb. 15, protected by a Turkish naval task force.
“Tomorrow, we will take another historic step. We will send off our Cagri Bey ship from Mersin Tasucu to Somalia, and we will search for oil in Somalia. In this sense, 2026 will be a year of discoveries, a year of good news for us,” Turkey’s Energy and Natural Resources Minister Alparslan Bayraktar said on Sunday.
This could be a potential game-changer for one of the world’s poorest nations: Somalia is estimated to hold at least 30 billion barrels of oil reserves and 6 billion cubic meters of natural gas reserves, behind only Libya’s 48.4 billion barrels and Nigeria’s 37.3 billion barrels. Turkey’s Africa Opening Strategy identifies Somalia as a priority country due to its strategic maritime location and untapped energy resources.
Launched in 1998 and revamped in 2005, the"Africa Opening" strategy is a multidimensional, long-term policy by Turkey aiming to boost diplomatic, economic, and security ties across the African continent.
By fostering "African solutions for African problems," Turkey has increased its diplomatic missions from 12 to 44 and elevated trade from $5.4 billion in 2003 to over $40 billion by 2023. Turkey has also played a significant role in helping to stabilize Somalia since 2011, shifting from a focus on urgent humanitarian relief to long-term state-building, infrastructure development and security sector reform. Turkey is considered one of the Somali Federal Government's (SFG) most important allies, providing a model of engagement that combines humanitarian aid, diplomatic and military support to build a functioning state.
In 2017, Turkey inaugurated its largest overseas military base, Camp TURKSOM, in Mogadishu, where it trained thousands of Somali National Army (SNA) soldiers and police officers, specifically the elite "Gorgor" brigade and "Haramcad" police unit, aimed at countering the infamous Al-Shabaab terror group. In February 2024, Turkey signed a 10-year defense and economic agreement to help Somalia secure its 3,333-km coastline, including building a navy to combat illegal fishing and terrorism. Turkish firms, such as Favori LLC and Albayrak Group, manage the Mogadishu airport and seaport, which has significantly increased the Somali government's revenue generation. Turkey has also built hospitals (such as the Erdogan Hospital), schools and renovated critical infrastructure.
However, the 2024 energy agreement has come under scrutiny and heavy criticism for being lopsided, non-transparent and even potentially illegal under Somali law. Critics have argued that the deal, which grants TPAO exclusive exploration and production rights, favors Ankara at the expense of Somali economic sovereignty and national interests. Reports indicate that Turkey is allowed to recover up to 90% of its operational costs from produced oil and gas before sharing profits with Somalia, a rate considered extremely high, while Somalia is reportedly entitled to only 5% in royalties. TPAO is exempt from paying signature, development or production bonuses, which are common in international energy contracts to provide early revenue to host nations. Further, the Turkish entity is exempt from paying taxes in Somalia, further limiting the economic benefits for the local economy.
Critics, including members of Somalia's Parliamentary Natural Resources Committee, have also argued that the deal violates the Somali Petroleum Law, as it lacked a competitive bidding process and proper oversight. The Somali federal government has been accused of signing away resources without consulting regional states, such as Puntland and Jubaland, which have jurisdiction over their respective areas. A major point of contention is that any legal disputes arising from the agreement must be settled in courts based in Istanbul, not through international arbitration or in Somali courts, raising serious questions about impartiality.
The pragmatists have, however, argued that Somalia faces significant barriers to independent offshore exploration, making agreements with partners like Turkey, which offer comprehensive infrastructure, funding and security, a necessary, if not ideal, option. TPAO will target ultra-deepwater, with the Cagri Bey drillship conducting drilling in water depths of up to 3,480 meters, plus an additional 3,500 meters below the sea.
Drilling a single deep-water oil well is a major capital project often costing between $40 million to more than $100 million per well, a financial burden Somalia cannot bear independently. Further, Somalia lacks the advanced technology and in-country human capacity to independently undertake deep-sea exploration, as well as onshore infrastructure to support offshore operations, with Turkish firms already managing key logistical nodes like the Mogadishu seaport and airport.
The threat of piracy and non-state armed groups in Somali waters adds significant costs for security and insurance, which TPAO is expected to fully cover using its share of oil revenues. The deal as structured allows Somalia to avoid upfront financial risks, as TPAO covers expenses, with payments only beginning after oil is found.
Major global energy firms such as Shell Plc (NYSE:SHEL) and ExxonMobil (NYSE:XOM) have largely kept their energy contracts in Somali dormant due to the underlying political volatility and security risks. Turkey’s willingness to operate in high-risk areas makes them one of the few viable partners available to Somalia. Accepting Turkey's terms--including high initial cost-recovery rates of up to 90%--is seen by proponents as the only realistic way to finally monetize the estimated 30 billion barrels of offshore potential that has remained untapped for decades.
By Alex Kimani for Oilprice.com
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