An Iraqi oil refinery built in Somalia in the 1970s has remained abandoned for nearly 45 years, emerging into public awareness during recent diplomatic talks, Al-Iqtisad News reported on May 19.

Somali President Hassan Sheikh Mohamud requested Iraq's support in renovating the decades-old refinery during the 34th Arab Summit recently hosted in Baghdad.

The facility was constructed by the Iraqi General Company for Oil Projects in 1974 with a capacity of 10,000 barrels per day (bpd) and an annual output of 500,000 tonnes.

Under the original agreement, Iraq financed the construction in foreign currency, while Somalia was to repay 50% of the cost over three years after operations began, at nominal interest.

The refinery operated until oil deliveries from Iraq ceased in 1980 due to the Iran-Iraq war, after which its operations declined significantly, reaching just 6% of capacity by 1989.

Located in the Al-Jazeera (The Islands) area northeast of Barawa, the facility faced multiple challenges after Iraqi oil supplies stopped, including lack of crude oil access and difficulties obtaining maintenance equipment.

The outbreak of civil war in Somalia in the early 1990s led to the collapse of this facility, along with much of the country’s energy infrastructure.

The renewed interest in rehabilitating the facility coincides with Somalia's broader efforts to develop its energy sector. The country has recently signed major exploration agreements with international companies, including Turkish oil firm TPAO, which is conducting 3D seismic surveys that are expected to conclude by late 2025.

Somalia has also secured agreements with the US Liberty Petroleum Corporation for offshore exploration in several areas, demonstrating growing international interest in the country's oil and gas potential.