Mogadishu, Sept 29, 2025 — Somalia is set to launch its first-ever oil drilling operation in the coming months, President Hassan Sheikh Mohamud announced, marking what could be a major turning point in the Horn of Africa nation's economic trajectory.

Speaking at the opening of the 7th session of the joint parliament in Mogadishu, the president said the move represents a critical step in Somalia's efforts to tap into its vast natural resources and build a sustainable national economy.

"For the first time, Somalia will begin drilling a well that will test the volume and quality of our oil reserves," Mohamud said. "This is a new economic journey -- one that can transform the future of our people."

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Over the past several years, the federal government has signed exploration and drilling agreements with various foreign companies specialised in oil and gas.

These companies have conducted seismic surveys both onshore and offshore, with preliminary results indicating that Somalia may hold significant untapped oil and gas reserves.

Mohamud described the project as a "milestone" in his government's broader plan to generate revenue, create jobs, and reduce poverty by harnessing the country's natural wealth.

The announcement comes as several international firms have already inked deals to explore and potentially exploit Somalia's oil blocks. The government says responsible investment in this sector could lift millions out of poverty and help fund public services.

However, some analysts and civil society groups have urged the government to establish strong governance mechanisms to avoid mismanagement and political conflict over oil revenues.

"There must be transparency, accountability, and equitable resource sharing," one analyst said, warning that without proper safeguards, the oil sector could become a source of instability rather than prosperity.