MOGADISHU — Somali President Hassan Sheikh Mohamud has said that several international companies that previously signed oil exploration agreements with Somalia have withdrawn from their contracts, citing difficulties in securing financing to develop the offshore blocks.
Speaking in remarks on the country’s energy sector, the president said major firms, including ExxonMobil, had stepped back from parts of their earlier commitments, returning exploration blocks to the Somali authorities after failing to mobilize investment for exploration and production activities.
He also stated that one company holding a Somali oil contract had returned seven offshore blocks, in reference to Coastline Exploration, which previously held exploration rights in Somali waters. Another company, ExxonMobil, had held five blocks, some of which date back to agreements signed with Somalia’s central government during the era of Mohamed Siad Barre, according to the president.
The Somali leader said the withdrawal of some companies reflected broader financial and geopolitical challenges facing exploration in frontier energy markets, where high costs and security concerns have slowed investment decisions.
However, he defended Turkey’s growing involvement in Somalia’s energy sector, describing Ankara as a partner willing to take risks that other countries and companies have avoided.
“Right now, they hold three blocks; if the Government of Türkiye asks us for thirty, we will give them,” he said, highlighting what he described as strong bilateral trust in energy cooperation.
Turkey’s state-owned energy company, Turkish Petroleum (TPAO), currently holds exploration rights to three blocks, alongside other investors including Liberty Petroleum, which also holds three blocks in Somali offshore areas.
Somalia has been seeking to attract renewed investment in its untapped hydrocarbon resources, particularly offshore basins believed to contain significant oil and gas reserves, though exploration has repeatedly been delayed by financing constraints and security concerns.
Energy analysts say Somalia’s offshore sector remains at an early stage, with progress dependent on sustained investment, regulatory stability, and improved security conditions.
The government has in recent years intensified efforts to promote its energy potential, positioning Somalia as a future frontier for hydrocarbons in the Horn of Africa, despite ongoing political and security challenges.
