Turkey has made a significant breakthrough in its energy exploration efforts in East Africa, announcing that two of the three oil blocks it operates in the region have yielded commercially viable reserves estimated at 20 billion barrels. This discovery represents a major turning point in Turkey's growing interest in Somalia and the broader East African energy landscape.

The Somali Guardian reports that while the two pilot oil blocks have made significant yields, the third block is still being explored and is expected to yield commercial oil quantity by August. The discovery comes amid reports of a shared oil development agreement signed between the Somali government and Turkey last month, which has raised concerns over Somalia's limited revenue and lack of control over financial flows.

The deal grants Turkey about 90% rights of oil and gas output, laying the groundwork for long-term energy cooperation between the two countries. Somalia's strategic maritime position and vast energy reserves – estimated at 6 billion cubic meters of natural gas and up to 30 billion barrels of offshore oil – have made it a priority for Turkey's expanding energy ambitions.

Somalia's President, Hassan Sheikh Mohamud, has defended the agreement with Turkey, highlighting its potential benefits for the country. However, critics argue that the deal's unusually favorable terms for Turkey will limit Somalia's revenue and control over its own energy resources. The agreement exempts Turkish entities from paying standard upfront costs such as signature bonuses and administrative fees, effectively giving Turkey free access to Somali hydrocarbon blocks.

Moreover, Turkey can recover up to 90% of annual oil and gas production as "cost petroleum" before sharing any profits – a percentage far above international norms. Somalia's revenue is further limited by a modest 5% royalty cap, which excludes petroleum used or reinjected during operations. Turkey also secured full rights to export its share of hydrocarbons at global market prices and retain all earnings abroad, cutting Somalia out of any control over the financial flows.

In addition, Turkey is allowed to transfer its rights to third parties without local oversight or the need to establish a presence in Somalia. This has raised concerns about Somalia's long-term benefit from the exploitation of its own energy resources. President Mohamud has countered that the partnership with Turkey is a historic milestone that will kick-start official exploration of Somalia's untapped energy sector.

While Somalia is not yet recognized as an oil-producing nation, geo-seismic surveys indicate the country could possess as much as 30 billion barrels of oil and gas reserves. Unlocking these resources will be a long-term process, as thorough exploration usually takes three to five years, with production commencing only after that stage is complete. Before the collapse of central governance in 1991, major international oil and gas firms had signed exploration deals in Somalia, but those companies pulled out amid the onset of civil war and prolonged instability.

The implications of this discovery and the agreement between Turkey and Somalia are far-reaching, with potential consequences for the region's energy landscape and Somalia's economic development. As Turkey solidifies its position in East Africa, it remains to be seen how this will impact the global energy market and Somalia's ability to benefit from its own natural resources.