BAGHDAD, Iraq — Somali President Hassan Sheikh Mohamud has appealed to Iraq for support in restoring a decades-old oil refinery in Mogadishu. Iraq built the refinery in the 1970s, but it has long since fallen into disrepair.
The request, made during the recent Arab League Summit in Baghdad, coincides with Somalia’s bold efforts to reassert itself as a rising player in Africa’s energy sector.
The refinery, constructed in 1974 by Iraq’s State Company for Oil Projects, had an annual refining capacity of 500,000 tons. Under the terms of the original agreement, Iraq financed the construction in foreign currency, while Somalia was to repay 50% of the cost over three years after operations commenced, at a symbolic interest rate, reflecting the spirit of regional solidarity at the time.
“This is quite the surprise,” said Iraqi economist Dr. Nabil Al-Marsoumi in remarks to Shafaq News. “Iraq has a refinery abroad—and nobody even knew!” The project, largely forgotten for decades, now reemerges as a potentially valuable asset amid Somalia’s search for energy independence and economic recovery.
A new energy frontier
Somalia is undergoing a dramatic transformation in its ambitions for oil and gas. In recent years, the country has signed key exploration deals aimed at tapping into vast, previously unexplored hydrocarbon reserves.
One of the most high-profile agreements is with Turkey’s state-owned Turkish Petroleum Corporation (TPAO). The company is conducting 3D seismic surveys off Somalia’s coastline, using the Oruç Reis research vessel. The survey is expected to be completed by the end of 2025, paving the way for potential drilling operations by 2026.
In a significant development, Turkey recently discovered up to 20 billion barrels of crude oil in Somali offshore territory—a find that could significantly shift Somalia’s economic trajectory if proven viable and commercially extractable.
Somalia has also entered into agreements with U.S.-based Liberty Petroleum Corporation for offshore exploration in several blocks, including 131, 190, and 206, underscoring growing international interest in the country’s resource potential.
Strategic value of refinery revival
Reviving the Mogadishu refinery could be critical in complementing Somalia’s oil ambitions. With large-scale oil production on the horizon, domestic refining capacity would reduce dependency on fuel imports, lower energy costs, and create thousands of local jobs.
It could also strengthen Somalia’s negotiating position with international oil companies by demonstrating a long-term infrastructure vision backed by regional partnerships.
Furthermore, the refinery’s revival could mark a symbolic renewal of Iraq-Somalia ties—reconnecting two nations that once shared a development vision and mutual support during the 1970s.
As Somalia positions itself to become a key player in the Horn of Africa’s energy landscape, reactivating this forgotten Iraqi-built refinery would serve as a practical step forward and a powerful reminder of what strategic cooperation across regions can achieve.