The majority of the article can be summed up in the last paragraph:
*Researchers estimate the country holds billions of barrels of oil reserves, but exploration has been hampered by decades of conflict and political instability.*
Anything that can help to bring some lasting stability to Somalia is good for the whole region.
27
Cautious_Goose_55684 days ago
+8
Is the pirate problem solved?
8
GreyClay4 days ago
+8
Largely, yes.
But Al-Shabaab remain really strong despite two decades of Somali government, African Union, Ugandan, Kenyan, Ethiopian, American etc intervention.
Plus there is a small ISIS contingent in Puntland that don’t really carry out many attacks but still generate a lot of money that goes to other ISIS affiliates.
8
rubywpnmaster4 days ago
+2
The real question is will Turkey allow them to refine the oil domestically? It’s in their benefit to never let it touch the mainland. I doubt they want to build a refinement center only to have 90% of it stolen like in Nigeria.
2
ronn13iii4 days ago
+3
The question is who wants to take the investment risk to build a refinery. That's billions of dollars in investment and years of construction. Done by very specialized workers then operated by specialized workers until locals can be trained.
3
ftrowl4 days ago
+1
Sınce Turkey already have refineries, i dont think we will build in Somalia, imstead we will decrease our import and refine the Somalian oil
1
Waranle8-8-81 day ago
+2
Turkey has no control on what Somalia wants to do in it's domestic market. Somali government and business can setup domestic refineries - at least these small scale/modular ones for domestic consumption after which Somalia can receive its share in-kind (oil) rather than cash and then send it to these refineries.
2
ftrowl1 day ago
+1
Of course it is Somalia s to decide, i was just going on the assumption that the govermant wouldnt want the huge economical burden of constructing a new refinerie, port, adequat piers etc. and wait for it to go operational and would instead sell the oil to anybody who wants to buy and build the infrastructure later
1
Waranle8-8-81 day ago
+2
You're kinda right. The government might not do it. I would definitely do it if I was them.
Even working on the assumption that the government might not be interested, the private sector definitely will be (at least with small scale refineries). Somalis are exceptionally business savvy. The moment someone figures it out/does it, you will have a boom in oil the domestic refinery business.
2
ftrowl4 days ago
+5
Turkish navy already conduct anti piracy operations in the region as part of the Nato, resaerch ships would be protected, no problem
5
S1rr0bin4 days ago
+19
Don’t tell America
19
ariadeneva4 days ago
+5
Turkey also have military base and train Somalian military,
looks like they invest heavily in the region,
5
GreyClay4 days ago
+3
Yes Turkey is becoming a major international player again, their military strength and weapons technology are allowing them to project power over a vast area.
Just two examples: it was Turkey who largely decided the outcome of the civil war in Syria and also decisively ended the Azerbaijan / Armenia conflict by heavily backing the Azeris.
3
Sweaty_Creme_42424 days ago
+4
From what’s been disclosed, the Turkey-Somalia deal is unique. Unlike standard industry contracts, Somalia receives no upfront bonuses, and Turkey reportedly gets a 90% cost recovery rate. Post-recovery, the profit split is 30/70 in Turkey’s favor. Also Turkish firms operate in a tax-free environment unlike similar deals.
In typical 'frontier' deals, countries usually secure upfront bonuses, a lower cost recovery (50–75%), and a more balanced 50/50 profit share. However, this isn't just a commercial oil contract, it’s a comprehensive security pact. Turkey is committing its own navy to protect the Somali EEZ for 10 years in a high-risk zone where Western firms refuse to invest. Also Turkey has the rebonsobilty of building and training a Somali Navy from scratch. Turkey has already invested billions in local infrastructure, and While the financial terms are heavily weighted toward Turkey, the 'payment' Somalia receives is national security and state-building. With many details still confidential, the deal also seems rest on a deep foundation of bilateral trust. Is it just? It's hard to say, but it's certainly a trade-off between immediate revenue and long-term sovereignty.
4
Suds8zerozero14 days ago
+2
Turkish petroleum
2
cutiebunniglow4 days ago
+2
First offshore drilling in Somalia thanks to Turkey. Feels like a rare positive story out of there lately.
2
exciting_one20054 days ago
+7
All of a sudden freedom rights in Somalia will severely go down ang might require some "foreign" help /s
7
GreyClay4 days ago
+7
Turkey has been deeply invested in Somalia for the past decade and even if Turkey takes like 50% of the profits (which seems highly likely) it could still mean billions of dollars of income for the central government in Mogadishu.
At this point, I think most Somalis would gladly accept the injection of money into their economy, even if technically they are entitled to 100% of the income.
7
SelaTheRock4 days ago
+5
You clearly haven't read the agreement between the parties.
Turkey is entitled for 90% of cost recovery even before the project is becoming profitable. (In most contract you receive cost recovery of up to 50%)
Somalia is entitled to only around 5% royalty. (Again in most contracts the royalty rate is around 15%).
Turkey have full control on the oil and gas exports (Somalia can't veto on who to sell, they relay on foreign currency from Turkey and not from the export itself).
There are more points that shows how Turkey striped Somalia out from their most valuable asset.
The sad thing is people here on listnook believe that this contract will somehow benefit Somalia citizen
5
BangerSlapper14 days ago
+3
I admit I might be out of the recent loop on Somalia, but hasn’t the rap on Somalia for like the past 30 years been that it’s pretty much a non-functional state, that even defining it as a ‘state’ at all might be stretching the definition?
In other words, Turkey is definitely taking advantage of the situation, but 5% of oil proceeds is better than 0%, which is what Somalia would be earning if left to its own devices.
3
SelaTheRock4 days ago
+2
Yes they are a failed state, but 5% is nothing and probably won't be much of a help to a country who tries to put it together. They giving their biggest asset for peanuts, in the short term maybe it will benefit them but on the long term they will be enslaved to Turkey
2
GreyClay4 days ago
-2
Somalia is a failed state, at risk of completely disintegrating after more than 35 years of constant civil war. Somaliland, Puntland, South West State etc all desire to break away from a central government that hasn’t been able to impose power much beyond Mogadishu since overthrowing the ICU twenty years ago.
As I stated in another comment Al-Shabaab still control vast swathes of the country despite thousands of Ugandan, Kenya, Ethiopian etc troops dying in the fight against them. Despite continuous US air strikes for the past 20 years Al-Shabaab remain remarkably strong and ISIS have entrenched themselves in Puntland.
Al-Shabbab continues to fund every other Al-Qaeda affiliate - including Al-Qaeda Central - and ISIS in Somalia continue to bankroll virtually every other ISIS affiliate on Earth, including in Iraq and Syria.
This is a historic opportunity for a country that has previously had khat as its primary export.
-2
SelaTheRock4 days ago
+2
Yes but they get basically nothing out of it, the only county that benefit from it is Turkey who now get a free energy source.
2
Old_Telephone19304 days ago
+4
Somalia gets 70% after Turkey gets their investment money back. With its small population, that money would seriously change their lives forever. To say Somalia gets nothing is a wild statement.
4
SelaTheRock4 days ago
+1
Do you have a source for that? I haven't seen anything on this
1
exciting_one20054 days ago
+1
I wanna know that Even tho Turkey is part of NATO what r the chances that a certain freedom loving country puts it's eyes on Somalia?
1
CampingChair904 days ago
+2
Easy solution. Turkish and U.S busines collab on extraction of natural resources.
2
exciting_one20054 days ago
+3
Oh yes. I actually keep forgetting cooperation and collaboration is still a thing u see....
3
CormoranNeoTropical4 days ago
+1
US oil majors are way too busy in Guyana.
1
exciting_one20054 days ago
+2
we can always do with a litte bit more freedom/s
2
RefrigeratorMobile514 days ago
+1
Soon freedom will come to Somalia
1
MrKazaki4 days ago
+1
Oh god, pirates and oil rigs
1
GroundbreakingCode174 days ago
+1
Chor log pehli baar mehnat ki kamai khane ko ready h 😂
34 Comments