U.S. firm provides aid to Somalia after winning an oil deal

Coastline Exploration Ltd which is based in Houston, Texas, paid $7 million to the government as a signature bonus after president Hassan Sheikh gave it a green light to proceed with the oil exploration.

News Keydmedia Online
26 October 2022

MOGADISHU, Somalia - The U.S.-based Coastline Exploration company said it will deliver humanitarian aid to three districts on the coast of Somalia, where it will be exploring oil and gas in the future.

The company made this statement a few days after the President of Somalia Hassan Sheikh Mohamud signed an oil-production sharing agreement with Coastline Exploration Ltd after months of dispute.

Coastline Exploration Ltd [formerly Soma Oil and Gas] said it donated $1.4 million in food aid to 6,000 households in Barawe [Southwest, Hobyo [Galmudug], and Kismayo [Jubaland] amid famine warning.

"Somalia needs all the help it can get to alleviate the chronic drought and famine conditions that are being so cruel to so many families. We hope that this food aid donation will go some way to ease the suffering,” said W. Richard Anderson, Chief Executive of Coastline.

The firm has invested over $50 million in Somalia and has been engaged with multiple stakeholders in Somalia since 2018 in respect of its plans for the development of the country's offshore energy industry.

Coastline Exploration Ltd which is based in Houston, Texas, paid $7 million to the government as a signature bonus after president Hassan Sheikh gave it a green light to proceed with the oil exploration.

The deal was signed after a review of an accord signed in February last year by former minister of petroleum Eng. Abdirashiid Mohamed Ahmed in Turkey was termed illegal by the former government.

KEYDMEDIA English