ISSN: 2226-3624
Open access
This study examines whether the Somali National Oil Company (SONOC) can effectively drive Somalia’s anticipated oil boom and contribute to the sustainable development of the petroleum sector. The research aims to evaluate SONOC’s current capacity, institutional role, and potential to manage hydrocarbon resources while safeguarding national interests and promoting economic growth. A qualitative research methodology is adopted, using a descriptive and exploratory design. The study relies on secondary data sources, including legal frameworks, policy documents, institutional reports, and academic literature. Comparative analysis of selected African National Oil Companies (NOCs) is also employed to identify best practices and derive lessons applicable to Somalia’s context. The findings reveal that SONOC is currently non-operational due to incomplete institutional structures, particularly the absence of a formally appointed Board of Directors. This significantly limits its ability to lead or support petroleum sector development. However, the study finds that SONOC holds strong transformative potential if properly established, governed, and supported by clear institutional frameworks. The analysis identifies the hybrid NOC model as the most suitable approach for Somalia, as it balances state participation with private sector efficiency through strategic partnerships with international oil companies. The study concludes that while SONOC cannot presently drive Somalia’s oil boom, it can become a central pillar of the petroleum sector if operationalised with strong governance, transparency, and institutional coordination. Timely establishment and strategic structuring of SONOC are therefore critical to ensuring effective resource management, enhancing state participation, and achieving sustainable and inclusive economic development.
Copinschi, P. (2022). Energy and the economy in Sub-Saharan Africa. In The Palgrave handbook of international energy economics (pp. 693-712). Cham: Springer International Publishing.
Sabre, K. D., & Ahmad, H. F. The Role of the National Oil Company in the Kurdistan Region Oil Process through International Oil Companies.
Tsikata, T. (2022). Role and contribution of the Ghana National Petroleum Corporation (GNPC) as a national oil company: A reflection. In Petroleum Resource Management in Africa: Lessons from Ten Years of Oil and Gas Production in Ghana (pp. 41-85). Cham: Springer International Publishing.
Gundel, J. (2020). Oil and gas in the political marketplace in Somalia. LSE Research Online Documents on Economics.
Hussein, H. A. Opportunities and Challenges for Oil and Gas Production in Somalia.
Doric, B., & Dimovski, V. (2018). Managing petroleum sector performance–a sustainable administrative design. Economic research-Ekonomska istraživanja, 31(1), 119-138.
Donwa, P., Mgbame, C., & Ekpulu, G. (2015). Economic growth: oil and gas contributions. Sci-Afric Research Journal of Accounting and Monetary Policy, 1(2), 102-108.
Madugba, J. U., Ekwe, M. C., & Okezie, S. O. (2016). Evaluation of the contribution of oil revenue to economic development in Nigeria. International Journal of Economics and Finance, 8(6), 210-218.
Ahmed, A. M., & Mukhongo, A. (2016). Factors influencing the political stability in Somalia. Elixir International Journal, 42795-42804.
Webersik, C., Hansen, S. J., & Egal, A. (2018). Somalia: A Political Economy Analysis. Norwegian Institute of International Affairs.
Mihalik, S., Bernardini, J. C., & Ewers, B. (2022). Future Operating Model for National Oil Companies. BCG Global.
Azieva, R. H. (2013). Investment attractiveness of the oil industry to foreign and domestic investors. Components scientific and technological progress, (2), 17.
Lee, R., & Lee, Y. I. (2021). The role of nation brand in attracting foreign direct investments: a case study of Korea. International Marketing Review, 38(1), 124-140.
Ngoasong, M. Z. (2014). How international oil and gas companies respond to local content policies in petroleum-producing developing countries: A narrative enquiry. Energy Policy, 73, 471-479.
Alagoz, E. (2023). Sustainable development in the oil and gas sector: Considering economic, environmental and social aspects. International journal of earth sciences knowledge and applications, 5(2), 303-308.
Noreng, Ø. (2021). The oil business and the state: national energy companies and government ownership. Routledge.
Wariri, A. M. C. (2026). The role of national oil companies in shaping energy policy and development: a comparative analysis of Nigeria and Brazil. International Journal of Energy Sector Management, 1-27.
Sunley, E. M., Baunsgaard, T., & Simard, D. (2003). Revenue from the oil and gas sector: Issues and country experience. Fiscal policy formulation and implementation in oil-producing countries, 153-183.
Akpokerere, O. E., & Ekane, R. O. (2022). Oil and non-oil revenue and the Nigerian economy. International journal of management & entrepreneurship research, 4(11), 441-457.
Oladepo, O. I. (2014). Evaluation of petroleum products marketing in a globalising economy: A conceptual evidence from Nigeria. British Journal of Marketing Studies, 2(2), 71-81.
Al-Mana, A. A., Nawaz, W., Kamal, A., & Ko?, M. (2020). Financial and operational efficiencies of national and international oil companies: An empirical investigation. Resources Policy, 68, 101701.
Ike, C. B., & Lee, H. (2014). Measurement of the efficiency and productivity of national oil companies and their determinants. Geosystem engineering, 17(1), 1-10.
Tordo, S., Tracy, B.S. and Arfaa, N., 2011. National Oil Companies and Value Creation. Washington, DC: World Bank.
Pirog, R. L. (2007, August). The role of national oil companies in the international oil market. Congressional Research Service, Library of Congress.
Victor, D. G. (2013). National oil companies and the future of the oil industry. Annu. Rev. Resour. Econ., 5(1), 445-462.
Corkin, L. (2017). After the boom: Angola's recurring oil challenges in a new context (No. 72). OIES Paper: WPM.
Oxford Analytica. (2021). Economic realities will trump the Angolan oil and gas plan. Emerald Expert Briefings.
Baldé, A. (2021). THE IMPACT OF COVID-19 ON THE OIL AND GAS SECTORS IN ANGOLA. Norwegian Journal of Development of the International Science, (59-2), 19-20.
Obeng Dappah, J. (2024). Comparative Analysis of the Ghana Petroleum (Exploration and Production) Act 2016 and the Petroleum Industry Act 2021 of Nigeria: Focus on Foreign Investment Attraction and Capacity-Building Relationships.
Horbah, F. (2020). Developing a Framework for Robust Safety Management in Ghana’s Upstream Oil and Gas Industry. University of Salford (United Kingdom).
Okeke, N. O., Gberevbie, D. E., & Udom, A. C. (2023). Commercialisation Of Public Enterprises In Nigeria: A Study Of The Nigerian National Petroleum Corporation (NNPC). Journal of Namibian Studies, 37.
Dannels, S. A. (2018). Research design. In The Reviewer’s Guide to Quantitative Methods in the Social Sciences (pp. 402-416). Routledge.
Sileyew, K. J. (2019). Research design and methodology (Vol. 7, pp. 1-12). London: Cyberspace.
Abbott, M. L., & McKinney, J. (2012). Understanding and applying research design. John Wiley & Sons.
Ajayi, V. O. (2023). A review of primary sources of data and secondary sources of data. Available at SSRN 5378785.
Church, R. M. (2002). The effective use of secondary data. Learning and motivation, 33(1), 32-45.
Farid, M. M. (2026). Can the Somali National Oil Company (SONOC) Drive Somalia’s Oil Boom? Evaluating its Role in Petroleum Sector Development. International Journal of Academic Research in Economics and Management Sciences, 15(2), 106–121.
Copyright: © 2026 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode