MOGADISHU (SD) – The Federal Government of Somalia has issued a strong warning to foreign oil companies, demanding they begin exploration activities immediately or risk losing their operating licenses.

The move follows growing frustration within the government over delays in developing the country’s oil sector, despite agreements signed after the re-election of Hassan Sheikh Mohamud in 2022. Companies, including Aquila Coastline Ventures, Soma Oil and Gas, and Liberty Petroleum Corporation, were granted exploration rights but have yet to deliver significant progress.

Officials say the firms have failed to meet key contractual obligations such as conducting seismic surveys, drilling exploratory wells, and making tangible investments. Instead, they are accused of focusing on partnerships and international engagements rather than on-the-ground operations.

The government’s warning is seen as a signal that it intends to move forward with activating the oil sector and may revoke licenses from underperforming companies, potentially reallocating them to firms ready to begin work.

Experts note that while the decision could accelerate resource development and attract serious investors, it also risks triggering legal disputes with existing contractors if licenses are withdrawn.

This move reflects a shift in Somalia’s approach from signing agreements to demanding concrete results in its energy sector. It signals growing urgency to unlock economic potential but also highlights governance challenges, as enforcing contracts against foreign firms may test legal frameworks and investor confidence.