Somaliland has announced it has discovered oil deposits in the Sallahey region , according to the Ministry of Energy and Mineral Resources.
In a statement, the ministry revealed that the discovery was made after the black liquid was spilled from a water well drilling site in the area and scientific investigations confirmed the presence of oil.
This marks the first confirmed oil discovery in the region.
UK firm Genel Energy is expected to begin further exploration and production in the area.
The announcement comes just two weeks after the Somali federal government warned Genel Energy against conducting oil exploration in Somaliland without permission from Mogadishu, claiming that the company was infringing upon Somali sovereignty.
Somaliland, which declared independence from Somalia in 1991 and has since sought international recognition, dismissed the statement from Mogadishu as baseless.
