HOUSTON — Coastline Exploration Ltd., an upstream oil and gas company focused on East Africa, has received final authorization to proceed with its exploration program from the competent authorities within the federal government of Somalia.
As a result, in line with the terms of the production sharing agreements (PSAs), Coastline has paid the agreed US$7 million signature bonus to the Somali Central Bank.
Authorization was granted following conclusion of an in-depth review conducted by the federal government of Somalia into the process followed by Coastline and by the relevant Somali Ministries and related advisory groups with respect to the signing of the seven PSAs in February of this year.
Coastline estimates that approximately 100,000 bbl/d of oil will flow from each discovered field, and in the success case, Coastline hopes to discover multiple offshore oil fields.
Coastline has invested more than US$50 million in Somalia. The company said it is committed for the long term and has been engaged with multiple stakeholders in Somalia since 2018 in respect of its PSAs and plans for the development of the country’s offshore energy industry. Coastline’s PSAs will enable the company to proceed with plans to explore for oil and gas on the many prospects and leads identified in the waters offshore Somalia.