Somaliland's President Abdirahman Mohamed Abdullahi Irro has announced that oil drilling is set to commence by 2027, marking a significant milestone in the country's energy sector. This development comes after years of exploration and negotiations with foreign companies, with the government aiming to attract much-needed foreign investment. The announcement was made during the Somaliland Mining Expo in Hargeisa, where Irro expressed optimism about the potential for oil production within the next two years, or even sooner if technical and contractual preparations are completed ahead of schedule.
The country has been actively exploring for oil for over a decade, with agreements signed with international companies like London-listed Genel Energy, which holds interests in multiple exploration blocks. While geological surveys and seismic studies have identified promising structures, no commercially viable oil discoveries have been confirmed yet. Somaliland's efforts to attract foreign investment in its natural resources have intensified, with the president's recent visit to the United Arab Emirates focusing on economic cooperation, including potential oil investment.
However, the sector is fraught with legal and political complexities. Somaliland declared independence from Somalia in 1991 but lacks international recognition. Somalia's federal government has disputed Somaliland's authority to license oil and gas activities, asserting its sole right to do so nationwide. This dispute, along with the limited drilling history in the region, means that the transition from exploration to production will depend on sustained investment, security, and the resolution of competing legal claims over resource ownership. Despite these challenges, Somaliland officials remain optimistic about the potential economic benefits of oil development, emphasizing the territory's stability and the existence of local petroleum laws and regulatory institutions.
