Qatar Awarded Contract to Drill Somalia’s Second Oil Well in Nugaal Basin

Mogadishu (WDN) – Somalia’s Ministry of Petroleum has announced that Qatar has been awarded the contract to drill what is expected to become the country’s second oil production well, located in the hydrocarbon-rich Nugaal Basin in the Northeastern Regional Administration.

According to the Ministry, the project will focus on the Holhol prospect near the town of Hudun, an area long regarded by geologists as one of Somalia’s most promising petroleum reserves.

Nevertheless, the minister’s statement provided no details regarding the scope or terms of the agreement, leaving key aspects of the contract unclear. It also did not specify whether the Government of Qatar is serving as an intermediary, with the intention of subcontracting petroleum exploration and drilling activities to major international oil and gas companies.

The Nugaal Basin has attracted interest for decades. Initial geological surveys were conducted during the administration of the late President Mohamed Siad Barre, when the Holhol prospect was first identified as a potential oil-bearing structure. Those early exploration efforts laid the groundwork for subsequent assessments of the basin’s commercial potential.