As Somalia Secures Oil Deals, the Government Must Tackle Corruption and Wisely Steward Natural Resources
On March 7, 2024, Somalia and Türkiye inked a game-changing deal to jointly delve into the depths of offshore oil and natural gas reserves. This agreement isn’t just about drilling; it stretches its tentacles into the transportation, distribution, and refining of these precious resources, spanning over projects both on terra firma and the vast, deep blue seas.
Come October 25, Türkiye’s energy leviathan, TPAO, teamed up with the Somali Petroleum Authority (SPA). The collaboration isn’t landlocked; rather, it’s an expedition into onshore hydrocarbon exploration. As Türkiye’s seismic research majesty, the Oruc Reis vessel, anchored in Mogadishu, whispers of seismic surveys filled the air. Word on the street is, Somalia has laid open three oil and gas blocs to Türkiye…each a sprawling 15,000 square kilometers.
While the fine print of how the loot will be divvied up is shrouded in mystery, murmurs suggest a possible link to the Defense and Economic Cooperation Framework Agreement, nodded through by Somalia’s bigwigs in February 2024. It sounds like Somalia’s considering giving Türkiye a slice of oil profits, sweetening the deal with a decade of safeguarding its maritime treasures. In anticipation of this dance, Türkiye’s already sent its troops out to patrol Somali waters.
Back in October 2022, the energy scene saw American oil hunter, Coastline Exploration, striking a pact with Somalia. They bagged themselves a whopping seven offshore blocs and tossed a $7 million olive branch bonus to the Somali coffers.
The Petroleum Act got a turbo boost in 2019, revamping how Somalia manages oil and gas endeavors. This update gave birth to a Petroleum Sharing Agreement (PSA) and a Resources Sharing Agreement, aiming to align the Federal Government and Federal Member States in a lucrative union. Yet the path to safeguarding these treasures is rocky. Internal checks are sparse, and the spoils could easily slip through fingers. Somalia’s dodgy reputation on the Transparency International Index hints at a murky world of public sector shenanigans at every level.
President Hassan Sheikh Mohamud, on a reform spree in October 2022, disbanded the National Anti-Corruption Commission (NACC) and the Judicial Service Commission (JSC), fueled by Senate murmurs about their shaky formation during Farmaajo’s twilight. Fast forward, neither commission has seen the light of reformation. In the latest 2025 budget roll-out, a meager $141 million was earmarked for the NACC, signaling Somalia’s struggle against bureaucratic greed remains a specter looming large.
“This situation ain’t a walk in the park,” says President Hassan’s government, all eyes on promising transparency and trust to the Somali folks. With dollars from newfound oil wealth swirling in the air, questions loom about ensuring these riches uplift Somali life. Historically, Somalia leaned on external handouts, tackling age-old issues like humanitarian calamities. The horizon of self-reliance is tantalizingly close, but only if sound fiscal blueprints and equitable resource sharing can become the new gospel. This mission should commence with the signature bonuses rolling in from international oil giants. According to the 2025 budget figures, $3 million in extra cash from these bonuses is on the docket. It’s crucial for the government to spill the beans to Somali society on spending plans and accountable use of these funds.
The clock is ticking for authorities to jumpstart restructuring the NACC and the JSC. Their revival is crucial in clamping down on graft monsters, ensuring public resources are wisely spent. The judiciary needs a rock-solid base, far removed from presidential whims. Then there’s the Somali Petroleum Authority, birthed from the Petroleum Act. It’s got big boots to fill, ensuring oil drills conform to laws and stand untainted in dealings with both international and local oil sector players.
“Us Somali folks, hollering for ages against outside intrusion, rightfully deserve the bounty our rich lands and seas promise,” Abdirahman Yusuf Ali, a passionate social and peace crusader and founder of the Uistaag Dadka iyo Dalka platform, emphasizes. “The men, women, and kids from the bustling cities to the quiet corners of our nation ought to savor these gains too.”
Reflecting on the tales of other oil-rich nations, this oil boon could be Somalia’s blessing or bane. The outcome hinges on how the government, businesses, and the people steer these tides. Abdirahman can be reached for more insights at: [email protected]
Edited by: Ali Musa
alimusa@axadletimes.com
Axadle international–Monitoring
