June 2025, Mogadishu – A storm of controversy has erupted over what was meant to be a milestone in Somalia’s economic recovery. The Somalia-Turkey hydrocarbons exploration deal, signed in March 2024 and recently expanded to include both onshore and offshore blocks, has ignited fierce political debate, public protests, and accusations of secrecy.
The Deal at a Glance
Under the agreement, the Turkish Petroleum Corporation (TPAO) gains exclusive rights to explore and develop vast oil-rich territories in Somalia. Turkey will finance exploration costs—estimated at hundreds of millions of dollars—but stands to claim up to 90% of production profits before Somalia receives its share. Somalia will also get a 5% royalty fee, while Turkey retains the right to sell its portion of extracted oil.
Though the deal affirms Somalia’s legal ownership of its resources, critics argue the financial terms undermine the nation’s economic sovereignty, leaving it with minimal returns from its own wealth.
Public Outrage and Political Resistance
We Were Not Consulted
Members of Somalia’s Federal Parliament claimed they were never given full access to the contract before its approval. Several lawmakers condemned the deal as “exploitative” and "one-sided,” demanding transparency and a parliamentary review.
“How can we speak of sovereignty when our oil is being sold under terms we never debated?” questioned MP Halima Abdi during a heated parliamentary session.
Regional Governments Reject the Deal
Authorities in Puntland and Galmudug, autonomous regions with oil-rich territories covered by the deal, have rejected the agreement, accusing Mogadishu of bypassing their consent. Puntland’s Ministry of Natural Resources declared the deal null and void within its borders, raising fears of further tensions between the federal government and regional states.
Critics Slam the Revenue Model
Energy experts and civil society groups warn that the deal sets a dangerous precedent, offering Somalia far less than industry standards.
“No upfront payments, minimal royalties, and no local job guarantees—this is a raw deal,” said an analyst from the Somali Natural Resource Observatory. “Countries like Ghana, Kenya, and Uganda secure 10-20% royalties plus local investment commitments. Why are we settling for less?”
Government Defends the Agreement
Somalia’s Ministry of Petroleum and Mineral Resources insists the deal is necessary to attract foreign investment. Officials argue that without Turkey’s technical and financial support, Somalia lacks the capacity to exploit its offshore reserves.
“These resources would remain buried forever without Turkey’s involvement,"said Minister Abdirashid Mohamed Ahmed. “This is our chance to build a future.”
The government also highlights broader Turkish commitments, including military aid, infrastructure projects, and capacity-building programs. They stress that TPAO only profits if oil is found, shifting the financial risk to Turkey.
What Comes Next?
Mounting pressure may force a political reckoning. Opposition leaders and activists demand:
- Full disclosure of the contract terms
- Renegotiation of profit-sharing
- Inclusion of regional states in discussions
- Independent legal and financial review
While the government has hinted at forming a commission to reassess the deal, no concrete steps have been taken.
Conclusion: A Nation at a Crossroads
For a country emerging from decades of conflict, oil wealth presents both opportunity and peril. The Turkey deal underscores the delicate balance between foreign investment and national sovereignty. How Somalia navigates this controversy will shape its economic future—determining whether oil becomes a blessing or a curse.