Coastline Exploration leads the renewed charge for oil and gas exploration in Somalia

International oil companies such as Chevron, Eni, ExxonMobil, Shell, etc have shown increased interest in the exploration of Somalian lands. Seven offshore blocks have been acquired by a Houston-based Coastline Exploration from the federal government of Somalia for $7 million in 2022, which is now leading the charge.

The plan of the Coastline Exploration is to begin 3D seismic mapping by November and drilling by mid-2025. The CEO of the company Richard Anderson has stated that the potential is there for multiple tens of billions of barrels, recoverable, or even more over time”. Other major giants such as ExxonMobil and Shell are also reportedly considering returning to Somalia as it sits on a vital international shipping chokepoint.

It has been estimated that Somalia could have up to 30 billion barrels of crude across its 15 blocks. This estimation has been made based on the 2D seismic study conducted by TGS in 2014. After the recent invasion of Ukraine by Russia, discussions regarding energy security in Africa have come to the forefront, especially since access to electricity is low in the region. The petroleum ministry had agreed on an initial road map with ExxonMobil and Shell in March 2020.

All this planning and development in the oil sector also comes with the risk of becoming a target for Al-Shabab militants, as they still have control over large tracts of land, making it challenging for the oil companies to work in the region.