There has been renewed interest in exploration plays in Somalia, one of the final frontiers for global oil and gas development, with energy security back on the political agenda in the East African country following years of conflict and instability.
Today, though, Houston-based Coastline Exploration is leading a renewed charge, having acquired seven offshore blocks from Somalia's federal government in 2022.
The US minnow is entertaining farm-in proposals for its wildcat plays in the country, but is not dependent on future partners, CEO Richard Anderson told S&P Global Commodity Insights.
"I think the potential is there for multiple tens of billions of barrels, recoverable, or even more over time," Anderson said. "Just the areas we are looking at would be in that range, in the upside case, and that is just in our blocks." Coastline, which paid $7 million for the blocks, will begin 3D seismic in November, Anderson said, with a view to drilling in mid-2025.
Meanwhile ExxonMobil and Shell were said to be considering a return to Somalia, which sits on a vital international shipping chokepoint. In March 2020, the petroleum ministry agreed an initial road map with the two companies.
According to 2D seismic conducted by TGS in 2014, there could be 30 billion barrels of crude across 15 blocks initially offered by Somalia's government.
Coastline first announced in February it had signed PSAs for seven blocks covering 35,000 square km, almost two years after Somalia launched its first offshore round, but Mohamud's predecessor, Mohamed Abdullahi Mohamed annulled the deal.
Anderson said Coastline's projects will progress in November. "The next phase is shooting a 3D seismic survey between November and March. We will then process it over three to four months," he said. "We hope to be drilling by the second or third quarter of 2025."
Crude discoveries, Anderson said, would "change the geopolitical balance" in the region. Given the potential size of Somalia's reserves, "it is an opportunity that the Somali people should not miss."
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Today, though, Houston-based Coastline Exploration is leading a renewed charge, having acquired seven offshore blocks from Somalia's federal government in 2022.
The US minnow is entertaining farm-in proposals for its wildcat plays in the country, but is not dependent on future partners, CEO Richard Anderson told S&P Global Commodity Insights.
"I think the potential is there for multiple tens of billions of barrels, recoverable, or even more over time," Anderson said. "Just the areas we are looking at would be in that range, in the upside case, and that is just in our blocks." Coastline, which paid $7 million for the blocks, will begin 3D seismic in November, Anderson said, with a view to drilling in mid-2025.
Meanwhile ExxonMobil and Shell were said to be considering a return to Somalia, which sits on a vital international shipping chokepoint. In March 2020, the petroleum ministry agreed an initial road map with the two companies.
According to 2D seismic conducted by TGS in 2014, there could be 30 billion barrels of crude across 15 blocks initially offered by Somalia's government.
Coastline first announced in February it had signed PSAs for seven blocks covering 35,000 square km, almost two years after Somalia launched its first offshore round, but Mohamud's predecessor, Mohamed Abdullahi Mohamed annulled the deal.
Anderson said Coastline's projects will progress in November. "The next phase is shooting a 3D seismic survey between November and March. We will then process it over three to four months," he said. "We hope to be drilling by the second or third quarter of 2025."
Crude discoveries, Anderson said, would "change the geopolitical balance" in the region. Given the potential size of Somalia's reserves, "it is an opportunity that the Somali people should not miss."
Coastline Exploration leads new charge on Somalia oil and gas
There has been renewed interest in exploration plays in Somalia, one of the final frontiers for global oil and gas development, with energy security back on the political agenda in the East African country following years of conflict and instability.
