Breakaway Somaliland Discovers Oil – Ministry

Regarding itself as the successor to colonial-era British Somaliland, the Republic of Somaliland is a self-proclaimed Islamic state which declared independence in 1991 during the collapse of Somalia. Since, the country has been making unsuccessful efforts to gain international recognition.

An inaugural oil field has been discovered in the self-declared Republic of Somaliland, stated its Ministry of Energy and Mineral Resources via social media.

An investigation confirmed that the black liquid observed in a waterwell drilled in the Sallahey area, Marodi-Jeh region, was oil. According to Somaliland officials, UK company Genel Energy will begin further exploration and production in the field.

Genel Energy has been operating in the unrecognized state since 2012. The firm received an exploration license from local authorities for two onshore blocks. In 2021, it signed a leasing agreement with OPIC Somaliland Corporation for an oil block along the border between Ethiopia and Somalia.

Two weeks ago, the internationally recognized Mogadishu government, from which Somaliland proclaimed independence in 1991, said that unauthorized oil production in the separatist region undermines Somalia's sovereignty.

In response, Somaliland deemed Mogadishu’s warning meaningless.

Somalia has a separate exploration agreement for seven offshore blocks with US-based Coastline Exploration, a fossil fuel corporation focused on East Africa. According to the company, it has paid $7 million to Somalia's Central Bank and now is ready to begin the exploration.