East Africa-focused oil and gas company Coastline Exploration has signed seven Production Sharing Agreements ("PSAs") covering offshore, deep-water blocks of the Federal Republic of Somalia.
Coastline, established in 2018, said that the PSAs enabled Coastline to proceed with plans to explore for oil and gas "on the many prospects and leads identified in these offshore blocks."
W. Richard Anderson, Chief Executive of Coastline, commented, "Somaliacontains the largest remaining unexplored set of basins situated in warm waters in the world. We are honoured and excited to be part of its future development.
"The Government of Somalia and the Ministry of Petroleum have spent a great deal of time and effort to ensure the country has the proper legal and administrative infrastructure to support oil and gas exploration with the passing of the Petroleum Law, adoption of the Revenue Sharing Agreement among the Federal Government and its Members States and the establishment of the Somali Petroleum Authority to provide continuing support for the anticipated growth in the sector."
Jake UIrich, Coastline's Chairman, continued "After a rigorous negotiating process, we are delighted to have signed these inaugural PSAs with the Somali Government. This marks a defining moment for the country. The way is now open for other oil and gas companies to join us in our quest for commercial discoveries through the current licensing round and, also through direct negotiations with the Somali oil and gas authorities.
"Revenues from the discovery of commercial quantities of hydrocarbons could be a major positive 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, including women and minorities, by helping provide for continued economic growth and improving the standard of living."
