Issue No. 751

Published 06 Nov 2024

Black Gold and Crude Ambitions

Published on 06 Nov 2024 16:10 min
Black Gold and Crude Ambitions
 
Amid much fanfare in late October, the Turkish oil and gas exploration vessel, the 'Oruç Reis,' docked at Mogadishu's Port to a warm welcome from Somalia's federal elite. Having set sail from Istanbul on 5 October, the exploratory vessel will now conduct 3D surveys of three undisclosed blocs of 15,000 square km in Somalia's territorial waters over 7 months as part of the secretive Turkey-Somalia bilateral agreement signed in March 2024. The arrival of the Oruç Reis is a step toward Mogadishu's long-held ambitions to profit from the country's 'black gold,' but any possible drilling will not occur for several months, and there remain several notable obstacles.

In a telling moment at the Mogadishu ceremony, Somalia's Defence Minister Abdulkadir Mohamed Nur 'Jama' gifted a replica painting to Turkish Energy and Natural Resources Minister Alparslan Bayraktar that depicted the Ottoman Empire when it included parts of modern-day Somalia and the Red Sea. The gesture was hardly subtle, a clear nod to Ankara and Turkish President Recep Tayyip Erdogan's ambitious foreign policy that has oft been described as 'Neo-Ottoman' and their indulgent rhetoric on their former empire. Indeed, 'Oruç Reis' is another name for Aruj Barbarossa (c.1474-1518), a famed Ottoman corsair and a Sultan of Algiers. With Mogadishu aggressively seeking to undermine the Ethiopia-Somaliland Memorandum of Understanding (MoU) in 2024, it has amped up its historical connections to Ankara while overlooking the uncomfortable histories of Ottoman slave trading on the Indian Ocean.

It is more than simply rhetoric, though, and Ankara has moved quickly to cement itself as Villa Somalia's pre-eminent ally and benefit from the Addis-Mogadishu tensions. In October, Turkey's state-owned energy company TPAO and Somalia signed another joint onshore hydrocarbon exploration agreement. And Somalia isn't the only African country that Turkey is seeking to develop economic ties with, having signed two contracts with Niger on mining in October as well as oil and gas in July. Like other 'Middle Powers' in the Gulf, the Erdogan administration is highly assertive and transactional in the Horn and beyond, seeking to develop its foreign policy and interests with autonomy from the US.  

Seeps of Somalia's oil were first formally identified during the colonial period by British and Italian geologists, while several major oil companies, including Chevron and Shell, began initial explorations in the 1950s. These were never acted upon, however, and state collapse in the 1990s meant that the country's purported oil and gas reserves have gone untapped. More recent 2D seismic studies have revealed that Somalia has potential oil and natural reserves of roughly 30 billion barrels, which would work out as slightly less than a third of the UAE's reserves. Where precisely, and if, the oil will be drilled remains to be seen, but it has been previously touted offshore from Galmudug, South West, and Jubaland in a USD 7 million 2022 agreement with US-based Coastline Exploration. However, like many development projects in Somalia, this never came to pass, nor did the ExxonMobil and Shell initial road maps agreed upon with the federal government in March 2020.

Oil and gas may yet bring significant revenue for the federal government, but the contents of the Turkey-Somalia maritime agreement remain under wraps, having been waved through parliament without scrutiny. The breakdown of potential profits is unknown, though it has been reported that President Hassan Sheikh Mohamud's family stands to personally gain, but without agreed fiscal federalism in Somalia, one can hardly imagine they will be shared equitably across the Federal Member States (FMS) with internal relations so poor.

Moreover, the potential for Turkish drilling off Jubaland's coast and closer to contested maritime waters with Kenya will likely prove highly contentious. The past month has seen the rapid collapse in relations between Kismaayo and Villa Somalia over the federal government's plans to extend regional presidential terms again before conducting dubious 'one-person, one-vote' elections. Though Jubaland has no real coast guard to speak of, unlike Puntland and Somaliland, federally mandated exploration or drilling by Turkey in the FMS waters would presumably be resisted. However, Ankara is also unlikely to be willing to be dragged into an internal Somali political dispute.

Drilling off Jubaland also raises the spectre of the 2021 International Court of Justice (ICJ) ruling that backed Somalia in its long-running dispute with Kenya over a 100,000 square km triangle of maritime territory in the Indian Ocean. The dispute turned particularly sour during the previous administrations of Mohamed Abdullahi Farmaajo in Somalia and Uhuru Kenyatta in Kenya, and Nairobi has continued to refuse to accept the ICJ ruling. In recent months, as Ankara has deepened its military and economic ties with Somalia, Nairobi has also toyed with purchasing French naval assets, possibly as a deterrent. Still, though Kenya would surely be resistant to drilling in the disputed territory, it has also not explored suspected oil and gas in the Lamu basin.

There are other questions, too, about the wisdom of drilling for finite oil reserves amidst a global transition towards renewable energy, however slow. As seen in South Sudan and Sudan, administrations dependent on oil are highly susceptible to fluctuations in the market or severing of their supply, which inevitably has major knock-ons for their political economies and populations. With Somalia's political settlement already defined by a complex array of clan-based elite power-sharing agreements, the drilling for oil could supercharge Mogadishu's corruption and political jockeying. As was the case in South Sudan and Sudan, the majority of Somalia's impoverished population will almost certainly not reap the profits of any potential drilling; it will be funnelled into patron-client networks.

While the Oruç Reis conducts its seismic surveys in the coming months, Somalia's political schisms appear certain to continue to deepen onshore. Unlike gold, for instance, which can be smelted and sold by small-time companies, oil is a highly complex extractive resource that funnels money to the central elite. For Somalia, with its tortured history of centrifugal forces against a centralising administration, this does not bode well. Oil could be the resource to lift the country out of poverty, as federal ministers have promised, but it is more likely to be simply another chapter in the tussle between the centre and periphery.

The Somali Wire Team

To continue reading, create a free account or log in.

Gain unlimited access to all our Editorials. Unlock Full Access to Our Expert Editorials — Trusted Insights, Unlimited Reading.

Create your Sahan account Login

Unlock lifetime access to all our Premium editorial content

You may also be interested in

Issue No. 952
Fishy Business: IUU Fishing in Somalia
The Somali Wire

With all eyes trained on the Strait of Hormuz blockades and their geopolitical convulsions, discussions and concerns, too, have risen about the perils of other globalised chokepoints, not least the Bab al-Mandab. The threats to the stability of the Bab al-Mandab, the Gulf of Aden, and the Red Sea may not arise principally from the escalatory logic that the US, Iran, and Israel have been locked in, but the threats posed from collapse and contested sovereignty offer little relief. Off Somalia's northern coastline in particular, it is transnational criminal networks — expressed in smuggling, piracy, and, less visibly but no less consequentially, illegal, unreported, and unregulated (IUU) fishing — that define the character of offshore insecurity. It is this last phenomenon that provides the foundation on which much of Somalia's maritime disorder is built, and which remains the most consistently neglected.


21:07 min read 24 Apr
Issue No. 126
Russia in the Horn: Opportunism in an Age of Disorder
The Horn Edition

In the past months, a number of unsettling images and videos have emerged from the Russian frontlines in the Ukraine war. Within the horrors of the grinding "kill zone," where kamikaze drones strafe the sky for any signs of movement, yet another concerning dimension has emerged—the use of African recruits by Moscow in the conflict, often under false pretences. Particularly drawn from Kenya, many reportedly believed they were signing contracts to work as drivers or security guards, only to be shipped to the front lines upon arrival. Such activities are illustrative of several issues, including Russia's relationship with countries in the Horn of Africa, one shaped more by opportunistic realpolitik than genuine partnership.


28:23 min read 23 Apr
Issue No. 951
Federal Overreach in Baidoa Faces Pushback
The Somali Wire

Villa Somalia's triumph in Baidoa may yet turn to ashes. Since the ousting of wary friend-turned-foe, Abdiaziz Laftagareen, in late March, the federal government has ploughed ahead with preparations for state- and district-level elections in South West. Nominally scheduled for next week, President Hassan Sheikh Mohamud has chosen to reward his stalwart parliamentary ally, Aden Madoobe from the Rahanweyne/Hadaamo, with the regional presidency after some vacillation, naming him the sole Justice and Solidarity Party (JSP) candidate


0 min read 22 Apr
Issue No. 328
The TPLF versus the TIA-- again
The Ethiopian Cable

Another showdown over Tigray's political architecture is unfolding, with the future of the Tigray Interim Administration (TIA) once again at stake. For much of this year, fears of renewed war have loomed over Ethiopia's northernmost region, with the federal government mobilising substantial forces to the edges of Tigray.


19:44 min read 21 Apr
Issue No. 950
A City Without Its People
The Somali Wire

In Act III, Scene I of William Shakespeare's tragedy Coriolanus, the tribune Sicinius addresses the gathered representatives and, rejecting the disdain the titular character displays towards plebeians, defends them, stating, "What is the city but the people?" Capturing the struggle between the elite and the masses of ancient Rome, the line has remained politically resonant for centuries--emphasising that a city, democracy, and state rely on the people, not just their leader. Or perhaps, not just its buildings. It is a lesson missed by Villa Somalia, though, with the twilight weeks of President Hassan Sheikh Mohamud's term in office — at least, constitutionally — dominated by the government's twin campaigns in the capital: land clearances and the militarisation of Mogadishu.


20:32 min read 20 Apr
Issue No. 949
The Unravelling of Somalia's Consociational Order
The Somali Wire

On Tuesday, 14 April, the four-year term of Somalia's federal parliament ended, or rather, it didn't. Villa Somalia's (un)constitutional coup of a year-long term extension for the parliament and president in March remains in effect, leaving the institution in a kind of lingering zombie statehood. It is perhaps a fitting denouement for the 11th parliament, whose degeneration has been so thorough that its formal expiration means little in practice.


18:46 min read 17 Apr
Issue No. 125
After Three Years of War, What Is Left of Sudan?
The Horn Edition

Yesterday, 15 April, marked three years of brutal, grinding warfare between the Sudanese army and the Rapid Support Forces (RSF). Wholly neglected by a fading international community, many grim landmarks have been passed; another genocide in Darfur, the weaponisation of rape and starvation, another famine, or the desecration of Khartoum, El Fasher, and other major cities. And with no ceasefire or settlement in sight, the war has continued to swell, drawing in each neighbouring African country as tussling Middle Eastern powers grapple for the upper hand-- leaving Sudan in tatters.


28:01 min read 16 Apr
Issue No. 948
Somaliland's Maritime Security Dividends
The Somali Wire

As global energy markets reel from the partial shutdown of the Strait of Hormuz and war insurance premiums skyrocket by nearly 4,000%, an unlikely maritime security provider is emerging as a critical stabiliser in one of the world's most vital shipping corridors. The Somaliland Coast Guard, operating from the port city of Berbera, has quietly begun providing maritime escort services, seeking to reduce shipping insurance costs—and consequently, the price of commodities and energy for consumers across the Horn of Africa and beyond.


22:19 min read 15 Apr
Issue No. 327
The Afterlife of Swinging Addis
The Ethiopian Cable

Most nights in a number of dimly lit bars in Addis Ababa, one can hear a vibraphone hum over a syncopated bassline. The sprightly rhythm is unmistakably jazz, but the scales are Ethiopian; pentatonic, looping and melodic. Five decades after its pioneering by visionary musician Mulatu Astatke, Ethio-jazz remains in full swing, with its renaissance from the late 1990s persevering despite tough political and cultural conditions.


20:12 min read 14 Apr
Scroll