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Energy of Somalia

From EverybodyWiki Bios & Wiki


Energy in Somalia encompasses the production, distribution, and consumption of energy resources in the country, including fossil fuels, electricity generation, and renewable energy. In recent years, there has been increased activity in the exploration and development of Somalia’s hydrocarbon resources.

Hydrocarbon exploration and development

Somalia holds significant Oil and Natural gas reserves, both onshore and offshore. Geo-seismic studies have shown that Somalia may have at least 30 billion barrels of oil reserves, though it would take time to develop this.[1][2] A 2017 study revealed that Somalia is home to 20,582.75 kilometres of untapped reserves. Seismic surveys conducted by Spectrum Geo reveal total offshore deposits could be as high as 100 billion barrels.[3][4][5][6] Onshore reserves are also significant and mostly concentrated in the northern part of the country.[7]

International Oil companies (IOCs) have shown interest in Somalia's Oil and Gas since the 1950s. The first oil rush in Somalia, from the 1940s to the 1960s, began when Sinclair Oil Company and Agip started exploration in 1945. The first well (Sagaleh-1) was drilled in 1956, sparking a rush of major oil companies to the country. In 1961, oil flowed at the Coriole-1 well onshore near Qoryoley, with around 700 barrels of oil gushing out. The oil was paraffinic and light with an API of 44-47. This oil boom was abruptly halted after the military takeover in 1969, when Somalia became a Soviet-aligned state, leading Western companies to leave.[8][9][10]

After the Ogaden war in 1977, The Somali Government had re-opened ties with the West and had made drilling concessions and licenses of several onshore wells along the entire length of the eastern basin (almost half of Somalia's land area) to international companies in 1980s. Following successes within the Yemeni Jurassic basins during the 1980s, a great deal of renewed interest was shown in the country. Exploration was abruptly halted due to the outbreak of the Somali civil war in 1991. Since then, IOCs have been paying rental fees on the blocks to the current governments until exploration resumed.[11][9]

In February 2020, the Federal Government of Somalia ratified the Somali Petroleun Law, this law established the legal framework for petroleum exploration and production in Somalia. It clarified that petroleum resources are the property of the Somali people and outlined the governance structure for the industry.[12] In July 2020, the Somali Petroleum Authority was established, the SPA is responsible for regulating the petroleum sector, including issuing exploration licenses, reviewing production sharing agreements, and ensuring compliance with national laws.[13] In August 2020, Somalia launched its first-ever offshore licensing round, offering several offshore blocks for bidding. This initiative aimed to attract international investment[14]

Coastline Exploration Deal

In 2022, Houston based Coastline Exploration Ltd had bought seven off-shore blocks from the Federal Government of Somalia, CEO Richard Anderson told S&P Global :

"I think the potential is there for multiple tens of billions of barrels, recoverable, or even more over time.. Just the areas we are looking at would be in that range, in the upside case, and that is just in our blocks."[15]

Coastline Exploration has invested over $50 million in Somalia, including a $7 million signature bonus for each block. In October 2022, after five amendments to an earlier agreement rejected by the Farmaajo administration, a deal was signed in Istanbul granting Somalia a 50-50 profit share, a 30% income tax, and a 5% royalty.[16][17][18] In March 2023, Coastline Exploration has partnered with Actus Veritas Geosciences (AVGEO) to prepare a geological assessment of offshore Somalia. The study confirmed the existence of multiple petroleum plays with clastic and carbonate reservoirs in water depths between 1500 and 3200m. Coastline estimates that discoveries in these plays would have the potential to deliver up to 100,000 barrels of oil per day when developed. Richard Anderson, Coastline Exploration's CEO, declared :

"We are pleased with the study results and are looking for partners to develop the blocks. We are ready to open the data room for interested parties to attend."[19]

In November 2023, geoscientists at Coastline Exploration reported that the Somali Basin system showed strong potential for major hydrocarbon development, estimating a 50-70% likelihood of viable oil-generating source rocks, suggesting that multiple trillions of barrels of oil equivalent may have been generated over geological time. They concluded that long-standing concerns about the existence of a working petroleum system offshore Somalia are largely unfounded, with the region exhibiting the key characteristics of a prolific, multi-billion-barrel petroleum province.[18]

Liberty Petroleum deal

In March 2024, US based Liberty Petroleum signed three PSAs covering offshore Blocks 131, 190, and 206, granting them a five-year exploration period.The agreement permits Liberty to conduct evaluations and 3D seismic surveys to determine drilling viability. If these surveys are successful, they may lead to comprehensive oil extraction operations.[20][21][22][23] The deal followed more than a decade of negotiations, beginning with the first production sharing contracts signed in 2013. The company claimed at least 8 billion barrels could be found in their blocks.[24]

In January 2026, Liberty Petroleum announced it had identified exploration prospects across two of its offshore Somali blocks that could contain around 15 billion barrels of oil in place.[25] By March 2026, Liberty Petroleum stated that it expected to complete the agreed Year 2 3D seismic acquisition programme across its three Somali PSAs within the planned Q1 2025 to March 2026 window, with field and navigation data to be delivered to the Somali Petroleum Authority and final acquisition and QC reports to follow within six months of demobilisation. In March 2027, Liberty is expected to include full processing of the acquired 3D seismic across its blocks, and an integrated seismic interpretation to produce a ranked catalogue of leads and drill-ready opportunities across the main petroleum systems. By 2028, one exploration well is planned to be drilled in each block, with well completion reports to be issued within six months of drilling, followed by a final evaluation to decide whether to enter the second term of the licences.[26]

Turkish deal

In March 2024, Turkey signed an energy cooperation agreement with Somalia, granting the Turkish Petroleum Corporation (TPAO) rights to explore three offshore blocks and conduct full-cycle activities, including development and production.[27][28] Under the 2024 oil deal, TPAO could receive 90% of the profits.[29] This recovery phase was said to be temporary, after which the remaining profits would be shared, with Somalia receiving 70% of the profits in addition to a 5% royalty from the start of production.[30][31][32]

The agreement drew controversy over the scale of the cost recovery terms. According to Radio Dalsan reporter Abdirazak Ali Gesey, much of the controversy centers around a misinterpreted provision that allows the operator (TPAO) to recover up to 90% of annual production value, he argues that the Nordic Monitor, a platform run by exiled Turkish opposition journalists, have misinterpreted this as Turkey receiving 90% of Somalia's oil revenue.[33][34] Ismail Osman, Former Deputy Director of NISA, has described the deal as one of the most strategic and forward-looking oil agreements in Africa’s modern energy history, comparing it to Nigeria’s 55% and Ghana’s 58%, and emphasizing that the recovery cost is only temporary.[35] Additionally, in October 2024, Turkey's state-owned energy company, TPAO, and Somalia's Petroleum Authority signed a separate agreement for future onshore hydrocarbon exploration.[36]

Turkey's seismic research vessel, Oruc Reis, was dispatched to Somalia on October 5 2024 by Turkish President Recep Tayyip Erdogan, as part of the agreement between the TPAO and Somalia’s Ministry of Petroleum and Mineral Resources. The ship came back in June 2025 after a 234-day mission collecting seismic data over 4,464 square kilometres in three offshore blocks in Somali waters.[37] An estimated 20 billion barrels of commercially viable oil reserves were discovered in two of the three blocks.[38][39][40][41] The Somali Minister of Petroleum and Mineral Resources had also stated exploration was problematic due to the amount of illegal fishing vessels nets interfering with the exploration equipment.[42][43]

In April 2026, the deep-sea drilling vessel Cagri Bey arrived in Somali waters to begin offshore drilling operations. The vessel was deployed to drill the Curad-1 well, located roughly 370 km offshore, with planned depths of up to 7,500 meters, making it one of the deepest offshore drilling projects globally.[44][45] The operation follows earlier seismic surveys conducted by the Oruc Reis and marks the transition from exploration to active drilling, with campaigns expected to last several months and assess commercially viable hydrocarbon reserves.[46]

Northern Somalia

See also: Oil exploration in Puntland

In 1989, Conoco had discovered significant oil reserves in the Sool and Sanaag regions but was forced to leave the region due to rising tensions.[8] According to petroleum geologists, the South Arabian Marib-Shabwa and Sayun-Masila basins are associated with the Nugaal and Dharoor blocks in northern Somalia. A hydrocarbon analysis undertaken by the World Bank and the United Nations Development Programme (UNDP) in 1991 confirmed such favourable assessments. It concluded that of all countries bordering the Red Sea and the Gulf of Aden, Somalia had the best future hydrocarbon prospects in the region, second only to Sudan. The Nugaal and Dharoor bassins in Northern Somalia are estimated to old 20 billion barrels of oil.[6]

Studies indicate Somaliland has hydrocarbon potential in Jurassic to Miocene formations, including the Berbera (Bihendula) Basin, conjugate of the Arabian Balhaf Graben Basin.[47] In August 2012, Genel Energy received an exploration license covering onshore blocks SL-10B, SL-13, and the Oodweyne area. Early surface seep studies completed by 2015 estimated ~1 billion barrels of prospective oil in each block.[48] In December 2021, Genel Energy signed a farm-out deal with OPIC Somaliland Corporation, backed by Taiwan's CPC Corporation, on the SL10B/13 block neary Aynaba. According to Genel, the block could contain more than 5 billion barrels of prospective resources.[49]

In June 2025, Genel Energy reported that it had completed geotechnical surveys for the SL10B/13 block, located near Aynaba, and was preparing for civil engineering work. However, but due to heightened security concerns in eastern Somaliland, the company has suspended operations in that region. Genel is seeking a two-year extension to its contract, which would push the drilling timeline to 2027.[50]

Natural gas

The country also holds an estimated 200 billion cubic feet of proven natural gas reserves but as of yet no active hydrocarbon production.[51] In 1961, the Afgoye-1 well onshore flowed gas and the enclosure had an estimated of 200Bcf of gas in proven reserves. The total recoverable reserves are estimated to be around 10Tcf onshore.[10] The Federal Government of Somalia have expressed plans to extract natural gas and build a gas power plant in Afgoye as part of the National Transformation Plan 2029.[52]


Electricity production and consumption

In the second half of the 20th century, Somalia relied primarily on domestic wood and charcoal and on imported petroleum to meet its energy needs. Electrical utilities were nationalized in 1970, and power generation across roughly 80 small oil-fired thermal and diesel plants depended on imported fuel, with some expansion in the mid-1980s through Finnish-assisted projects in Kismayo and Baidoa. The country also depended on foreign donors, initially the Soviet Union and later Saudi Arabia, for petroleum supplies. In the late 1970s, Iraq helped construct a refinery at Jasira near Barawa with a capacity of 10,000 bpd, but deliveries were disrupted after the outbreak of the Iran–Iraq War in 1980, forcing a return to refined imports. By 1989, the refinery again met domestic needs, though Iraqi crude supplies remained inconsistent.[53][54] Somalia's energy costs during the early 1980s was alleviated by generous grants in kind from Saudi Arabia, covering all the oil requirement of the country for more than a year.[55]

After the fall of the government, most national energy infrastructure was destroyed. The state utility effectively ceased functioning during the collapse and Somalia has had no national electricity grid since 1991.[56] War and looting devastated power plants and state utilities.[57]

After the fall of the central government, electricity in Somalia became heavily decentralized. Since 1991, About 55 private electricity providers supply more than 90% of the power in the country. These private firms operate off-grid systems and typically manage their own generation, transmission, and distribution without national coordination.[58] Electricity generation in Somalia is overwhelmingly diesel-based, with around 90% of power produced from expensive diesel generators.[59] In 2023, the average cost of electricity in Somalia was about $0.61 per kilowatt-hour. Prices exceeded $1 per kilowatt-hour in some areas.[60]

In 2012, only 15% of the population had access to electricity. In urban areas 33% had access, compared to 4% in rural areas.[61] By 2024, electricity access had risen to around 61.9% overall, with 80.1% in urban areas and 39.4% in rural areas, driven mainly by privately operated diesel mini-grids.[62] The Somali government plans to raise the overall figure to 80% by 2029 by expanding electricity access to more rural areas.[63]

As of 2026, Somalia has no domestic oil production, and all petroleum products (diesel, gasoline, kerosene, LPG) are imported through private traders and regional suppliers. Petroleum therefore plays a vital role in transport, electricity generation, and urban energy supply.[64]

Renewable energy

See also: Solar power in Somalia

In 1988, a wind energy project saw four 50 kW turbines installed in the Mogadishu grid, producing 699,420 kWh in 1988. That year, total electricity production reached 257 million kWh, equivalent to an average output of about 29 MW over the year. Plans for five rural wind systems were announced but had to be abandonned due to the outbreak of the civil war.[65]

Since 1991, Somalia’s renewable energy sector has developed largely through private initiatives. In Somaliland, a 5 MW solar plant was commissioned in the city of Berbera in 2026.[66] In Puntland, Somalia's first hybrid solar-wind plant began operating in 2016 in the city of Garowe.[67] The largest solar power plant in Somalia was built by the private company BECO in Mogadishu in 2020, with a capacity of 10 MW, supplying electricity to the city. BECO has also announced plans to expand the plant’s capacity to 100 MW. In addition, several other companies in Mogadishu provide off-grid solar energy solutions, including Blue Sky, Solargen, Delta, and others.[68][69]

Studies suggest Somalia has high potential for onshore wind power and could generate between 30,000 to 45,000 MW.  A pre-conflict 1991 article in the scientific journal Solar Energy assessed that “the wind resource appears suitable for power production in 85 percent of the country.” A Spanish magazine focused on wind power, added in 2019 that “Somalia has one of the highest combined wind power and solar energy potentials on the planet.”[69] Somalia also has excellent solar energy potential due to its location near the equator and consistently high sunlight levels. Average solar irradiation ranges between 5.5 and 7 kWh per square meter per day, placing it among the top solar regions globally.[70] Somalia is believed to have the highest renewable potential in Africa with an average of 3,000 hours of sunlight per year, and one of the highest rates of irradiation in Africa (200 kW/m2). Wind speeds are nearly 20 miles per hour on average, which makes Somalia the location of Africa’s highest potential for wind energy, particularly along its coastline. Estimated generation potential in only 4 km2 could produce as much as the entire diesel and hybrid generation presently operating in the country.[71] Wind resource appears suitable for power production in 85% of the country. Somalia has one of the highest combined wind power and solar energy potentials on the planet.[72][73] The WorldBank estimates Somalia could generate up to 283 GW of electricity offshore.[74]

Despite this strong potential, solar energy remains underutilized, with only limited installed capacity and gradual adoption in hybrid systems and mini-grids. Constraints include lack of infrastructure, high upfront costs, and a historically diesel-based energy sector.[75]

As of 2025, of the country’s 400 MW[76] installed capacity, about 100 MW came from solar and wind power.[77] Only about 10% of the electricity used in Somalia comes from renewable sources.[78]

Hydroenergy

The Baardheere Dam was a proposed 75 m high multipurpose dam on the Juba River, located about 35 km upstream of Baardheere in the Gedo region. It was estimated to generate 493 MW of hydroelectric power, more than the country's current electricity generation capacity. It was proposed in the late 70s but the project was halted due to the outbreak of the Somali civil war. [79][80]

Biomass

In 2025, around 80% of Somalia’s energy consumption for cooking came from biomass fuels, contributing to deforestation and biodiversity loss.[81][82]

Challenges

Although Somalia has significant natural resource potential, its development is hindered by fragile governance, political instability, and weak institutions. The situation is further exacerbated by the enduring threat of terrorism from Al-Shabaab, which destabilizes regions and deters investment.[83][84]

See also

References

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  2. ↑ "Turkey to drill for oil off Somalia coast by 2026". Middle East Eye. Retrieved 2026-04-19.
  3. ↑ Oil Review Africa, Volume 16.2 2021. East Africa: Offshore ambitions in Somalia,
  4. ↑ Gundel, Joakim (2020-01-01). "Oil and Gas in the Political Marketplace in Somalia". Memo - Conflict Research Programme, LSE.
  5. ↑ "Somalia Readies for Oil Exploration, Still Working on Petroleum Law". Voice of America. 2019-02-13. Retrieved 2026-04-19.
  6. ↑ 6.0 6.1 Balthasar, Dominik (2022-01-04). "Oil in Somalia Adding Fuel to the Fire ?". Heritage Institute for Policy Studies.
  7. ↑ In the Nugaal and Dharoor basins of Puntland.
  8. ↑ 8.0 8.1 Gorod, Abdiwali. "To what extent is international oil contracts in Somalia are reliable". Plymouth University.
  9. ↑ 9.0 9.1 Haq, Ali (2016-12-05). "Offshore Somalia: East Africa's oil frontier". GeoExpro. Retrieved 2026-04-19.
  10. ↑ 10.0 10.1 Amsas Energy. Amsas Coriole-Afgoye Block Farm-in Opportunity, Somalia Summary (October 2014)
  11. ↑ Abdo, Mohamed (2022-01-01). "OIL AND GAS OPPORTUNITIES IN SOMALIA". Arabey Abdi.
  12. ↑ Authority, Somali Petroleum (2022-05-04). "Somali Petroleum Law". Somali Petroleum Authority. Retrieved 2025-08-21.
  13. ↑ "Home". Somali Petroleum Authority. Retrieved 2025-08-21.
  14. ↑ "Licensing Round". Somali Petroleum Authority. Retrieved 2025-08-21.
  15. ↑ Mitchell, Charlie (2023). "Coastline Exploration leads new charge on Somalia oil and gas". S&P Global.
  16. ↑ "Somalia President approves Coastline oil exploration agreement". hornobserver.com. 2022-10-22. Retrieved 2025-08-21.
  17. ↑ "Somalia signs major oil exploration agreement with Coastline". www.hiiraan.com. Retrieved 2025-08-21.
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  52. ↑ National Transformation Plan 2025-2029
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  62. ↑ Somalia National Bureau of Statistics. STATISTICAL ABSTRACT 2024
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  68. ↑ "Somalia: Beco builds 8 MWp solar power plant in Mogadishu". Africa Energy Portal. 2018-06-25. Retrieved 2026-04-12.
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  72. ↑ "Somalia: Country commercial guide". Trade.gov.
  73. ↑ "Unexplored countries with high wind power potential: Russia, Somalia, Oman, Vietnam, Iceland and Kazakhstan". reve.
  74. ↑ "Offshore Wind Technical Potential in Somalia" (PDF). World Bank.
  75. ↑ Samatar, Abdullahi Mohamed; Mekhilef, Saad; Mokhlis, Hazlie; Kermadi, Mostefa; Diblawe, Abdulkadir Mukhtar; Stojcevski, Alex; Seyedmahmoudian, Mehdi (2023-07-01). "The utilization and potential of solar energy in Somalia: Current state and prospects". Energy Strategy Reviews. 48: 101108. doi:10.1016/j.esr.2023.101108. ISSN 2211-467X.
  76. ↑ Somalia’s electricity sector is highly decentralized, with most generation provided through privately owned off-grid diesel mini-grids rather than a national grid, meaning installed capacity figures do not represent a unified system.
  77. ↑ World Economic Forum. The renewables dividend: Why Somalia must bet big on clean power (2025)
  78. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :22
  79. ↑ "TECHNOLOGY NEEDS ASSESSMENT FOR CLIMATE CHANGE MITIGATION" (PDF). Ministry of Environment and Climate Change.
  80. ↑ "Report of support to the Federal Government of Somalia in raising awareness and capacity in critical water-related issues in order to advance Integrated Water Resources Management" (PDF). Global Water Partnership.
  81. ↑ Cite error: Invalid <ref> tag; no text was provided for refs named :12
  82. ↑ UNEPCCC, Ministry of Environment and Climate Change. Promoting clean and efficient cookstoves in Somalia
  83. ↑ Farid, Mohamed M. (2025-08-25). "Escaping the Resource Curse: The Case Study of Somalia's Natural Resources". International Journal of Academic Research in Economics and Management Sciences. 14 (3): 423–441. doi:10.6007/IJAREMS/v14-i3/26177. ISSN 2226-3624.
  84. ↑ "Security Situation in Somalia and the Impact of Weak Governance and Reduced International Aid | African Security Analysis". www.africansecurityanalysis.org. Retrieved 2025-11-18.



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