Monday December 15, 2025
Heavy machinery used for mineral and oil exploration is seen operating in a remote area of Somaliland in this undated photo, as authorities say preparations are underway for future drilling activities amid renewed government efforts to attract foreign investment in the energy sector. CREDIT / Somaliland Ministry of Minerals
Hargeisa (HOL) — Somaliland President Abdirahman Mohamed Abdullahi Irro said Monday that drilling for crude oil is expected to begin by 2027, outlining what the government says could be a long-awaited step toward oil production after years of exploration and delays.
Irro made the announcement while speaking at the Somaliland Mining Expo in Hargeisa, saying drilling could begin within two years and might start earlier if technical preparations and contractual arrangements are completed ahead of schedule.
Oil exploration in Somaliland has been underway for more than a decade under agreements signed with foreign companies. Officials say geological surveys and seismic studies have identified promising structures, though no commercially proven oil discoveries have yet been confirmed.
London-listed Genel Energy remains the most prominent international company linked to Somaliland’s onshore oil sector. The company holds interests in multiple exploration blocks and has previously said it is working toward conditions needed to drill the long-planned Toosan-1 exploration well. In recent public statements, Genel has emphasized preparatory and regulatory work rather than setting a firm drilling date.
Irro’s comments come as Somaliland steps up efforts to attract foreign investment in its natural resources. Earlier this year, the president concluded a three-day official visit to the United Arab Emirates focused on economic cooperation, including potential investment in oil, minerals, agriculture and job creation. Somaliland officials said the talks involved senior UAE leaders and government agencies, underscoring the territory’s push to leverage long-standing ties with the Gulf state, which already plays a major role in Somaliland’s economy through infrastructure projects such as the Berbera port.
Somaliland authorities say the territory holds significant oil and mineral potential and have urged international investors to participate, citing the existence of local petroleum laws and regulatory institutions.
The sector, however, remains shaped by unresolved legal and political disputes. Somaliland declared independence from Somalia in 1991 but is not internationally recognized. Somalia’s federal government has repeatedly asserted that it alone has the authority to license oil and gas activities nationwide and in 2022 publicly rejected petroleum rights claimed by companies operating under Somaliland-issued licenses.
Geological studies referenced by energy analysts describe Somaliland as a frontier hydrocarbon region with limited drilling history. Fewer than a dozen exploration wells are known to have been drilled in the area, and analysts caution that drilling does not guarantee commercially viable production.
Somaliland officials say oil development could significantly boost government revenue and employment in the territory, which has remained relatively stable compared with much of Somalia. Analysts note that progress from exploration to production will depend on sustained investment, security conditions and the management of competing legal claims over resource ownership.