Very good deal, a real gamechanger for both countries.
Step by step the Turkish Republic is gaining their old Ottoman influence back with this kind of agreements.
Great and exciting times.
But..our relation with Ethiopa will never be the same again.
Turkey joined the Egypt-Sudan-Somalia-Eritrea-train against Ethiopa-Somaliland-Kenya with this deal.
Potentially a really good deal with excellent pay off, but also a risky deal where Erdogan will have to pay for everything first and hope things remain stable for the next 3 - 10 years to get a return on investment. If the deal is only 10 years and it takes 10 years to achieve this, well, you've made the investment to get nothing.
Somalia is desperate because of Ethiopia pretty much recognizing and signing deals with the rich Somaliland which is where a lot of oil exploration took place. They've been inviting Erdogan for 3+ years:
Turkish leader says Ankara will take steps in its operations in Somalia in line with the invitation.
www.aljazeera.com
Oil/resources isn't guaranteed either, that 30% cut may amount to nothing. It's nothing until hydrocarbon production actually starts as Somalia has no production facilities.
US minnow took seven blocks in 2022 Potential for "multiple tens of billions of barrels": CEO ExxonMobil, Shell eyeing potential return after decades There has been renewed interest in exploration pla
www.spglobal.com
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The government of Somalia even recently condemned as illegal the exploration activities of Genel Energy (a Turkish company) which was exploring in Somaliland.
Some Challenges:
Somaliland signed a deal with Ethiopia. Erdogan needs to undermine this and unite separatists (not just Somaliland) into Somalia's government.
Somalia recently receives no money from IMF for development or support as they don't have the institutions to receive money. It is economically undeveloped and not politically stable. Erdogan will have to hold the country together and invest in the economy up front.
Edit - the piracy is a problem for international shipping so that is a bonus for everyone globally.