The Federal Government of Somalia has formally warned Western oil companies holding exploration licenses that they must urgently begin exploration activities or risk losing their contractual rights.
The firm stance follows growing frustration within the government over prolonged delays in oil sector development, despite previously signed agreements.
Since the re-election of President Hassan Sheikh Mohamud in 2022, Somalia has entered into agreements with companies including Aquila Coastline Ventures and Soma Oil and Gas, while Liberty Petroleum Corporation has also been granted exploration contracts.
However, these companies have been accused of failing to fulfill key obligations, including Conducting 3D seismic surveys Drilling exploratory wells Making tangible investment commitments Instead, they are reported to have focused primarily on seeking partners and attending international conferences.
In contrast, the Somali government has pointed to the rapid progress made under a Turkish oil company following a 2024 agreement.
The company has already conducted significant surveys, with drilling operations expected to commence in 2026.
The Minister of Petroleum and Mineral Resources, Dahir Shire Mohamed, stated that Liberty Petroleum Corporation has already relinquished two of its three contracted blocks under the government’s new “work or relinquish” policy.
He further noted that another company is expected to begin new exploration activities soon, although he did not provide additional details.
