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Somalia opens doors to oil drilling, invites U.S. firms as SSC-Khaatumo gains federal recognition

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WASHINGTON, D.C. — Somalia is officially open for oil drilling and exploration, its Ambassador to the United States, Dahir Hassan Arab, announced Tuesday, marking a bold new chapter in the nation’s energy ambitions. The move follows the Federal Government of Somalia’s formal recognition of SSC-Khaatumo as a Federal Member State and the lifting of force […]

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WASHINGTON, D.C. — Somalia is officially open for oil drilling and exploration, its Ambassador to the United States, Dahir Hassan Arab, announced Tuesday, marking a bold new chapter in the nation’s energy ambitions.

The move follows the Federal Government of Somalia’s formal recognition of SSC-Khaatumo as a Federal Member State and the lifting of force majeure in the resource-rich Nugaal Valley Basin.

“Proud to announce that Somalia is officially open for drilling. I invite U.S. energy companies to return. SSC-Khaatumo is now recognized as a Federal Member State and the lifting of force majeure clears the way for oil exploration & extraction in the resource-rich Nugaal Valley Basin.” In a post on X, Ambassador Arab declared.

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The announcement comes from Ambassador Dahir Hassan Arab, with key support from Prime Minister Hamza Abdi Barre and Somalia’s Ministry of Petroleum and Mineral Resources.

Somalia is reopening its hydrocarbon sector for international oil drilling and exploration.

The announcement was made on Tuesday, April 15, following a government declaration on Sunday.

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The Nugaal Valley Basin in northern Somalia, particularly within SSC-Khaatumo, is the primary target for exploration.

The Federal Government’s recognition of SSC-Khaatumo and improved security have removed previous legal and logistical barriers, paving the way for renewed foreign investment in Somalia’s oil sector.

By lifting the force majeure — a clause that suspended energy activities due to insecurity — the government has created conditions favorable for exploration and extraction.

The policy shift comes days after Prime Minister Barre’s landmark visit to Las Anod, where he announced SSC-Khaatumo’s inclusion in Somalia’s federal structure. The decision marks a turning point in regional stability and resource governance, potentially unlocking billions of dollars in energy investment.

The Nugaal Valley, long considered a high-potential hydrocarbon zone, had remained off-limits due to legal uncertainties and conflict. With federal recognition of SSC-Khaatumo and clearer jurisdictional authority, energy firms now have a defined pathway for engagement.

Somalia’s Ministry of Petroleum has long sought international partnerships but struggled with political fragmentation and insecurity. The recognition of SSC-Khaatumo may now help resolve historic disputes over revenue-sharing and control of natural resources.

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