I’ve read and followed with interest Coastline Exploration’s Production Sharing Agreement (PSA) with the Federal Government of Somalia (SFG) on October 21, 2022. The agreement grants your company an exclusive contract to seven (7) offshore blocks that are within the areas under the direct control of SFG. Information about the PSA, the company’s current market valuation (if any), its physical assets (i.e., mobile or fixed platforms or rigs) and details about the designated offshore fields within Somalia’s territorial sea and Exclusive Economic Zone is scarce.

Several hydrocarbon study projects show that Somalia is one of the last unexplored oil and gas frontiers (see Mapping Oil Exploration in Somalia and Ethiopia, 2016). While oil exploration and development play a vital role in the global economy, ideological and clan-based conflicts in Somalia have hampered oil discovery. President Hassan believes the signing of the PSA should deliver “material benefits for all Somalis”.

My concern was elevated when I read an article by Reuters, which reported that no government officials were reachable for comment after your company paid a $7million signature bonus to the Somali authorities for signing the PSA.
Granted the company is obliged to comply with the PSA it has signed and the laws under which it is incorporated (including environmental standards), I hope you will consider the issues highlighted in this letter and share any information or insight that might keep the process of exploration transparent and equitable for the hapless Somali people.
Thank you!
Mohamed Elmi