Country for PR: United Kingdom
Contributor: PR Newswire Europe
Friday, October 21 2022 - 17:00
HOUSTON, Oct. 21, 2022, /PRNewswire-AsiaNet/--

Federal Government of Somalia approves Coastline's Production Sharing Agreements

President of Somalia supports Coastline's Production Sharing Agreements with 
the Federal Government and declares the country open for business with 
international companies;
Coastline received full Government support for its agreements at high-level 
meetings in Mogadishu with the President, Deputy Prime Minister, Minister of 
Energy & Minerals, Chairman of the Somali Petroleum Authority and Attorney 
General of Somalia;
Coastline pays US$7 million signature bonus to the Somali Central Bank for its 
7 Production Sharing Agreements; and
Coastline will now move forward with its exploration programme.

Hassan Sheikh Mohamud, President of Somalia, said: "This agreement highlights 
that Somalia is open for business and international investment after the 
conflict that has blighted the country for so many years. I would like to thank 
Coastline for its commitment to Somalia, as it has fulfilled its promise of 
investing here, unlike so many other companies. Coastline clearly sees 
significant opportunity in Somalia and we share its vision. The Federal 
Government will do all it can to support this project and we want the first 
exploration well to start as soon as possible. Today marks a major step forward 
for Somalia as we look to develop our energy industry which should deliver 
material benefits for all Somalis. Energy independence, new tax revenues and 
further foreign investment in Somalia now beckons."

Coastline Exploration Limited ("Coastline"), an upstream oil and gas company 
focused on East Africa, announces that further to its statement on February 
19th regarding the signing of seven Production Sharing Agreements ("PSAs") 
covering offshore, deep-water blocks of the Fedral Republic of Somalia, it 
confirms it has received final authorisation for it to proceed with its 
exploration programme from the competent authorities within the Federal 
Government of Somalia ("FGS").  As a result, in line with the terms of the 
PSAs, Coastline has paid the agreed US$7 million signature bonus to the Somali 
Central Bank.
Authorisation was granted following conclusion of an in-depth review conducted 
by the FGS 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 barrels of oil a day will flow 
from each discovered field, and in the success case Coastline hopes to discover 
multiple offshore oil fields.

Yesterday Coastline held meetings with the following Somali government 

-  H.E Hassan Sheikh Mohamud (President of Somalia)

-  H.E Salah Ahmed Jama (Deputy Prime Minister of Somalia)

-  H.E. Abdirizak Mohamed (Minister of Petroleum and Mineral Resources)

-  H.E. Mohamoud Ahmed Mohamoud (State Minister of Petroleum)

-  H.E. Abshir Omar Jama (Minister of Foreign Affairs and International 

-  Mr. Abdulkadir Aden Mohamud (CEO and Chairman of the Somali Petroleum 

-  Mr. Osman Elmi Guled (Attorney General)

-  Mr. Khadar Abdirahman Mohamed (Special Envoy for International Trade and 

-  Mr. Sackag Omar Mohamed (Member of Parliament)

Coastline has invested over US$50 million in Somalia and 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.

Coastline is proud of the work it has done in Somalia to help develop the 
energy industry and to enhance the future prosperity of the Somali people. 
Likewise, it is proud of the strong relationships it has built with the Federal 
Government during the long period of time it has been active in the country.

His Excellency Abdirizak Mohamed, the Minister of Petroleum and Mineral 
Resources, said: "Having seen how transformational new domestic energy sources 
have been for other countries in Africa, we are very excited by the potential 
of these offshore oil fields. Today's announcement really kick starts the 
energy industry in Somalia and is a turning point for the development of what 
is a critical revenue-generating area for the country."

W. Richard Anderson, Chief Executive of Coastline, commented: "Receiving the 
clearance authorisation means that we are now able to start our exploration 
programme. Revenues from the discovery of commercial quantities of oil will be 
transformative for Somalia from which the government could finance investments 
in education, infrastructure, healthcare and other vital services, which will 
benefit all of the people of Somalia, delivering continued economic growth and 
improving the standard of living."

Jacob Ulrich, non-Executive Chairman of Coastline, said: "We are delighted to 
have been given the go-ahead with the PSAs and we feel confident that we will 
discover major energy reserves which will have a materially positive impact on 
all Somalis. With the right partners in place and a supportive government, 
Somalia's nascent energy industry can look to the future with confidence now 
that there is a clear road map to potentially securing a sustained domestic oil 
and gas supply."

About Coastline Exploration

Coastline Exploration, the US based upstream oil and gas company focused on 
East Africa, was established to help develop the hydrocarbon industry. The 
Company believes there is huge potential for further significant oil and gas 
discoveries across offshore East Africa including offshore Somalia. 


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SOURCE: Coasline Exploration Ltd