Somali government prepares competitive bidding process for oil investors in Somalia

Friday August 21, 2026

Mogadishu (HOL) — Somalia is preparing to launch an open and competitive process for companies seeking to invest in the country’s oil sector as exploration enters a critical stage.

The Chairman of the Somali Petroleum Authority (SPA), Eng. Abdulqadir Aden, said a multi-day training course involving officials and experts from the Ministry of Finance, the Ministry of Petroleum and the Petroleum Authority focused on how Somalia should manage competition among companies interested in the country’s oil resources.

“Companies interested in working in Somalia’s oil sector will enter into an open competition,” Aden said.

He said the training examined competitive procedures and mechanisms to ensure that companies seeking to invest in Somalia’s oil sector have access to a clear and transparent process.

According to the SPA chairman, the training received support from the Canadian government. Somalia hopes that technical assistance and capacity-building programs will continue, particularly in areas such as negotiating petroleum contracts and developing investment strategies.

Aden said Somalia had reached a critical stage in its oil exploration efforts and that current activities could produce significant results in the coming months.

He said a confirmed oil discovery could increase international interest in Somalia and change the nature of future negotiations between the government and international petroleum companies.

“The discussions we have had in the past and the ones we will have in the future will be different,” Aden said, adding that an oil discovery could create new opportunities to attract international investment.

He also said Somalia’s investment environment had improved because of developments in security, politics and maritime transport.

“The decline in shipping insurance costs and improvements in maritime security could make Somalia more attractive to international investors. The political and legal agreements had helped reduce some of the risks that previously discouraged investment, he noted.

Aden described Somalia as a “new frontier” and an emerging market that remains largely unexplored, saying the country must work to attract investors at this stage.

The Petroleum Authority chairman said Somalia hopes to reach a major milestone in oil exploration by October if current plans proceed as expected.