Coastline Exploration Ltd., Houston, received final authorization from the Somalian government to proceed with its oil and gas exploration program.
The agreement signals that “Somalia is open for business and international investment after the conflict that has blighted the country for so many years,” said Hassan Sheikh Mohamud, President of Somalia. Noting the government will do all it can to support the project, he said authorities want the first exploration well "to start as soon as possible."
In February, Coastline noted signing seven production sharing agreements (PSA) covering deep water blocks offshore the Federal Republic of Somalia. With the new approval, in line with terms of the PSAs, Coastline has paid the $7 million signature bonus to the Somali Central Bank.
The company said has invested over $50 million in Somalia since it began engaging with stakeholders in 2018.