The government of Turkey is set to explore oil, gas and mining prospects in Somalia. This is after it set up a mechanism that will allow both private and state-owned companies to explore energy opportunities in the country.
A memorandum of understanding (MoU) between Turkey and Somalia on comprehensive energy and mining cooperation signed in 2016 in Mogadishu by Turkish Foreign Minister Mevlüt Çavuşoğlu and Somali Foreign Affairs and Investment Promotion Minister Abdusalam H. Omar during President Erdoğan’s official visit to the African country; was approved by the Foreign Affairs Committee of the Turkish parliament last month a week after President Recep Tayyip Erdoğan issued a statement on an invitation by the Somali government to conduct drilling and exploration operations off its coasts.
According to the agreement, the cooperation will focus on projects for the exploration, production and refining of hydrocarbons; natural gas processing, storage, transportation, marketing and distribution; geosciences and reservoir engineering; petrochemical and derived products; and the development and maintenance of infrastructure and associated technologies with regards to the hydrocarbons.
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The MOU seeks to establish a comprehensive cooperation and set out certain principles for cooperation between the Parties in the fields of energy and mining, with the purpose of developing and promoting the sectors of petroleum, gas, electricity, mineral and mining, as well as petro-chemistry.
The deal also covers the exchange of information and experience on the development of the energy sector and its legal framework, including contractual processes related to hydrocarbon and mining activities; training of human resources; supporting joint seminars, conferences and exhibitions aimed at attracting investment; and implementing specific projects in order to ensure energy supply security.
It also states that the parties should encourage private and state-owned companies to invest in the energy and mining sectors in both countries, adding that they will support private and state-owned companies to establish joint ventures and/or companies which would operate in the energy and mining sectors in both countries. Moreover, the agreement aims to promote cooperation through mining projects in the areas of prospecting, exploration, development, construction, operation and production.