Somalia Sets Sights on First Oil Drilling Campaign in 2026

After decades of under-explored hydrocarbon potential, the Federal Government of Somalia is preparing its first drilling campaign, with ambitions to start oil production by 2026. Somalia's hydrocarbon story has long been one of latent promise. According to the country's national petroleum policy, early seismic geophysical work was conducted from the late 1940s, however, no commercially viable oil and gas discoveries were made.

Between 2014 and 2016, following the establishment of a new government in 2012, the Federal Government of Somalia renewed its interest in oil and gas exploration activities and began to conduct seismic surveys in Central and Southern Somalia that yielded data revealing the existence of vast offshore oil and gas basins. The Federal Government has since sought to create a conducive investment environment by regulating various phases of the petroleum value chain including production sharing agreements, likening strategies, production termination and decommissioning, environmental health and safety management and management of petroleum revenues.

In parallel with Somalia's upward institutional momentum, Norwegian firm TGS has recently reaffirmed its long term commitment to Somalia's offshore potential. On 20 November 2025, TGS announced an extension to its agreement with the Ministry of Petroleum & Mineral Resources to market and license geophysical data over Somalia's basins. Under this extension, TGS retrains exclusive rights to license more than 46 000 line-kilometers of modern 2D seismic data and over 50 000 kilometers of aeromagnetic surveys. TGS's comprehensive regional data library offers advanced imaging and acquisition technology that will be key for operators evaluations of the exploration potential across Somalia's offshore areas.

The developments in Somalia's oil and gas sector present significant opportunity for industry stakeholders for the following reasons:

• Economic Diversification: Opportunity for the country's economy to pivot from reliance on remittances and agriculture to fostering job creation, infrastructure financing and increased revenue in the oil and gas sector.

  
  

• Geostrategic advantage: In comparison to its East African counterparts, Somalia as an unexplored territory in the oil and gas sector is now presented with a fresh opportunity to forge new partnerships, attract investment and commitment through the 2026 first oil drilling campaign.

  
  

• Institutional strengthening: The ramp up in seismic data contracts and drilling plans will incentivise developments in Somalia's regulatory, legal, environmental, financial and social frameworks in order to ensure that that the risk (security, enforceability, governance) matches the reward for investors.

  
  

Somalia is considered as a mover and shaker in 2026 to monitor, as the country gears towards establishing its first oil drilling campaign. Various contracting rounds, drilling results and regulatory developments are key indicators that will determine the trajectory of Somalia's transition from unexplored hydrocarbon potential to oil production.

Somalia's National Petroleum Policy

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The Legal Barrel, Research and Development Team