Oil & Gas

Somalia is preparing to launch its first-ever oil drilling operation, President Hassan Sheikh Mohamud has announced, in what could become a major turning point for the Horn of Africa nation. Speaking at the opening of the 7th session of the joint parliament in Mogadishu, the president described the move as a critical step toward tapping into Somalia’s natural resources and building a sustainable national economy.

“For the first time, Somalia will begin drilling a well that will test the volume and quality of our oil reserves,” Mohamud said. He called it a new economic journey that has the potential to transform the future of Somali people. This statement underscores the government’s ambition to move beyond reliance on aid and open a new chapter in resource-driven development.

Over the past several years, the federal government has signed agreements with foreign oil and gas companies to conduct seismic surveys both onshore and offshore. Early results suggest that Somalia may hold significant untapped reserves of oil and gas. Officials see the project as a milestone in efforts to generate revenue, create jobs, and reduce poverty through the country’s natural wealth.

At the same time, analysts and civil society groups caution against risks. They stress the need for transparency, accountability, and equitable resource sharing to avoid mismanagement and political conflict. Without strong governance, experts warn, Somalia’s oil sector could fuel instability rather than prosperity, making institutional safeguards as critical as the drilling itself.