AfrOil: Somalia green-lights Coastline’s exploration plans

US-based Coastline Exploration announced on October 21 that it had secured a green light from the Federal Government of Somalia (FGS) for exploration work covering seven offshore deepwater blocks.

Coastline had signed production-sharing agreements (PSAs) for all seven blocks this February with Abdirashid Mohamed Ahmed, then serving as Somalia’s Minister of Petroleum and Mineral Resources. However, the deals aroused some controversy and were cancelled just a few hours after the initial signing of the PSAs.

According to Coastline, the controversy has now been sorted out, clearing the way for the projects to move forward. In a press release dated October 21, the company explained that it had “received final authorisation ... to proceed with its exploration programme.” Federal authorities approved the PSAs “following [the] 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,” it added.