Self-proclaimed Republic of Somaliland has confirmed an oil discovery in the territory, two weeks after Mogadishu warned oil companies against exploration in Somaliland without authorization, saying it was undermining its sovereignty.

Somaliland announced that oil has been discovered in the Sallahey area of Marodi-Jeh region in a statement posted on Facebook by its Ministry of Energy and Mineral Resources.

The Ministry said it had launched scientific investigations after a black liquid spilled from a water well drilling site in the area; the result had confirmed the oil discovery. This is the first confirmed oil discovery in the area.

The statement added that UK firm Genel Energy would start further oil exploration and production following the find. Somaliland pulled out from the south of Somalia in 1991, but it is yet to get international recognition.