British-Turkish energy firm Genel Energy, the primary oil investor in Somaliland, has paused Somaliland oil exploration activities in the country’s eastern territories due to heightened security threats linked to regional instability.
The company is simultaneously under mounting pressure from its Taiwanese partner, CPC Corporation, to accelerate work amid geopolitical uncertainties, according to a June 9 report by Africa Intelligence.
Security Concerns and Contract Delays
Genel has suspended operations in Somaliland’s eastern regions, where security risks remain unspecified but are tied to broader instability.
Genel Energy is also monitoring protests in Burao (east of Hargeisa, Somaliland), where two people died in mid-May. Burao sits at the junction of Genel Energy’s five concessions.
“On SL10B13 in Somaliland, we continue to work towards achieving conditions that support drilling of the highly prospective Toosan-1 exploration well,” said Paul Weir, Chief Executive of Genel, on May 8, 2025.
Despite completing geotechnical surveys in late 2024 and planning civil engineering work for 2025, the company now seeks a two-year extension to its government contract. If approved, this would push its first drilling deadline to 2027.
Geopolitical Tensions and Stakeholder Pressure
CPC Corporation, Genel’s Taiwanese partner, is pressing for faster progress, urging the company to advance exploration timelines to 2026.
Meanwhile, China is closely monitoring Genel’s activities, reflecting the strategic significance of Somaliland’s energy reserves in global energy politics.
The country’s onshore blocks, where Genel holds a 51% stake, are estimated to contain up to 5 billion barrels of oil, with broader Somali basin reserves potentially reaching 30 billion barrels.
Regional Instability and Operational Risks
Ongoing conflicts in areas like Las Anod—a flashpoint between Somaliland and Somalia-aligned SSC-Khaatumo militia—threaten to disrupt operations.
Genel’s exploration block extends into the volatile Sool region, further complicating its efforts.
Broader Implications
The standstill jeopardizes Somaliland’s economic ambitions and could delay critical projects tied to its bid for international recognition. The involvement of Taiwanese and Chinese actors adds another layer of complexity to the region’s already fraught dynamics.
Africa Intelligence’s full report is available to subscribers. You can read here
