The Turkish government is set to receive up to 90% of the revenue generated from oil and gas extraction in Somalia, according to an official copy of a bilateral agreement that has recently surfaced for the first time.
As reported by the Nordic Monitor, the deal grants a Turkish-owned company exclusive rights to explore and extract natural resources off Somalia’s coastline. In return, Somalia will receive only 5% of the total revenue generated from these resources.
The document outlines that Turkey will cover all exploration and equipment costs, positioning Somalia merely as a formal partner in the venture.
“According to Article 4.7, Turkey is entitled to up to 90% of the oil or gas produced annually through a mechanism known as ‘cost petroleum’. This allows Turkey to recoup exploration and production expenses before any profits are shared,” the agreement states.
However, the revenue-sharing structure has sparked widespread controversy over the fairness and transparency of the deal. Somalia’s government officials have yet to publicly comment on the specifics of the agreement.
Diplomats and economic analysts have raised concerns that such an arrangement could severely undermine Somalia’s economic future if not reviewed and revised.
Adding to the controversy, members of the Somali Parliament, who had previously approved the agreement, reportedly had not seen the full official version of the document at the time of ratification.
