In a significant development for global energy relations, Azerbaijan and Somalia have signed a Memorandum of Understanding (MoU) aimed at enhancing bilateral cooperation in the oil and gas sector. The agreement, which was finalized on February 27, 2025, signals a new chapter of energy collaboration between the two nations, potentially altering the dynamics of the African and Caspian energy markets.
The MoU, signed by representatives from Azerbaijan’s state-owned energy giant, SOCAR (State Oil Company of Azerbaijan Republic), and Somalia’s Ministry of Petroleum and Mineral Resources, outlines plans for joint exploration, production, and the development of oil and gas resources in Somalia’s offshore and onshore reserves. The cooperation agreement also covers the transfer of technology, expertise, and best practices between the two countries in the oil and gas industries.
Somalia, a country that has long been underdeveloped in terms of energy extraction, has vast untapped oil and gas resources off its coastline. For years, the country has faced challenges due to internal political instability and the lack of infrastructure to support the exploration of its natural resources. This MoU comes as a beacon of hope, offering a path to revitalize Somalia’s energy sector, attract foreign investment, and develop its oil reserves.
Azerbaijan, which is a key player in the Caspian Sea oil and gas industry, brings decades of expertise in offshore drilling, energy production, and resource management. SOCAR’s involvement in this collaboration is seen as pivotal, given its technical expertise and established track record in international energy ventures. The Azeri company has expressed its commitment to helping Somalia develop the necessary infrastructure and know-how to exploit its energy resources safely and sustainably.
The signing ceremony, which took place at the Somali Ministry of Petroleum in Mogadishu, was attended by high-ranking officials from both governments, energy experts, and industry stakeholders. In his speech, the Azerbaijani Minister of Energy, Parviz Shahbazov, emphasized the importance of the agreement in strengthening ties between the two countries, stating that the collaboration would not only foster economic growth in Somalia but also open up new opportunities for both nations on the global energy stage.
By combining Azerbaijan’s wealth of knowledge in the energy sector with Somalia’s potential for growth, we are laying the groundwork for a partnership that will benefit not just our countries, but the entire region, said Shahbazov.
On the Somali side, Minister of Petroleum and Mineral Resources, Mohamed Ali Hassan, expressed optimism about the partnership, highlighting the strategic importance of the MoU. “This is a historic moment for Somalia. With Azerbaijan’s support, we are one step closer to harnessing our nation’s vast energy potential, which will play a key role in the development of our economy and infrastructure,” said Hassan.
The agreement outlines specific steps for the development of Somalia’s energy sector, including conducting seismic surveys, exploring offshore oil blocks, and building refineries and pipelines. The countries will also cooperate in the training of local workforce, technology transfer, and environmental safety measures.
The geopolitical implications of this partnership are also significant. Somalia’s location along the Horn of Africa makes it strategically important in the global oil trade route, particularly for energy flows in the Middle East and Asia. By aligning itself with Azerbaijan, a nation with strong relations to both Russia and Turkey, Somalia is positioning itself as an emerging player in the African energy sector.
Experts believe that this partnership could catalyze future investments in Somalia’s infrastructure, leading to broader economic reforms. However, challenges remain, including ensuring stability in the region and addressing concerns related to governance and security. Both countries are committed to working together to navigate these obstacles.
The signing of this MoU is seen as a major step in diversifying global energy partnerships, with African nations increasingly seeking out alliances with countries that possess deep expertise in energy production. It also represents a shift in Somalia’s approach to economic development, focusing on leveraging natural resources to propel the country toward long-term stability and prosperity.
The agreement is expected to pave the way for further collaborations in other sectors, particularly trade, infrastructure, and security, as both nations seek to build a strong, mutually beneficial relationship.
