ANKARA — Somalia and Turkey have reached an agreement to establish a major oil refinery in Somalia, marking a significant step in Mogadishu’s efforts to develop its energy sector and reduce dependence on imported fuel.
Under the preliminary deal, Turkish authorities have requested up to 20 square kilometers of land for the project, which is expected to host a modern refinery capable of processing crude oil domestically. If implemented, the facility would represent one of the largest energy infrastructure investments in Somalia in decades.
President Hassan Sheikh Mohamud is currently in Ankara, where he is holding high-level talks with Turkish officials aimed at deepening bilateral cooperation, particularly in energy, trade, and security.
Officials familiar with the discussions say the refinery plan is part of a broader strategic partnership between the two countries, with Turkey seeking to expand its economic footprint in the Horn of Africa while supporting Somalia’s long-term development goals.
For Somalia, the project could be transformative. The country currently relies heavily on imported refined petroleum products due to the absence of domestic processing capacity, despite indications of untapped hydrocarbon reserves. A local refinery could help lower fuel costs, improve energy security, and generate employment opportunities.
Analysts note, however, that key details remain unresolved, including the exact location of the proposed site, environmental safeguards, and the legal framework governing land allocation and revenue sharing. Transparency and regulatory clarity will be critical to ensuring the project delivers broad economic benefits.
Turkey has been a close partner to Somalia over the past decade, investing in infrastructure, education, and humanitarian initiatives. The proposed refinery would signal a shift toward large-scale industrial and energy investments, potentially reshaping Somalia’s economic landscape.
No timeline has been officially announced for the start of construction.
