Firm Surrenders Seven Somalia Offshore Blocks as Turkish Drillship Moves In |MOGADISHU: A U.S.-based oil company has surrendered seven offshore blocks awarded under production sharing agreements with Somalia\u2019s federal government, President Hassan Sheikh Mohamud has disclosed, citing the company\u2019s inability to finance its contractual obligations.<\/p>\n
Speaking in a recent podcast interview, President Mohamud did not identify the company by name, but the disclosure points almost certainly to Houston-based Coastline Exploration Limited \u2014 the only company to have been awarded seven offshore blocks in Somalia. The Federal Government of Somalia ratified seven production sharing agreements with Coastline in October 2022, following five amendments to the original deal signed earlier that year, with the company paying a $7 million signature bonus to the Somali Central Bank as part of that arrangement.<\/p>\n
Coastline had since been restructured and rebranded under Aquila Coastline Ventures, with its exploration mandate absorbed in part by Soma Oil & Gas. President Mohamud told the interviewer that investment capital for petroleum exploration has become increasingly scarce globally, leaving some licence holders unable to advance their commitments.<\/p>\n
The relinquishment, he said, reflected that financing reality rather than any dispute over Somalia\u2019s resource governance framework. The President used the occasion to highlight Turkey\u2019s emergence as a credible alternative partner.<\/p>\n
In October 2024, the Turkish exploration vessel Oru\u00e7 Reis completed 3D seismic surveys covering more than 4,000 square kilometres of Somali offshore waters, and in April 2025, the Turkish Petroleum Corporation (TPAO) signed an onshore exploration and production agreement covering three additional blocks spanning 16,000 square kilometres. Somalia\u2019s Petroleum Minister has separately warned that companies failing to meet their contractual milestones will not be permitted to hold Somalia\u2019s resources indefinitely.<\/p>\n
The issue is likely to carry broader political weight as Somalia navigates federal power-sharing, regional competition and the search for stronger public institutions.<\/p>\n","protected":false},"excerpt":{"rendered":"
Firm Surrenders Seven Somalia Offshore Blocks as Turkish Drillship Moves In |MOGADISHU: A U.S.-based oil company has surrendered seven offshore blocks awarded under production sharing agreements with Somalia\u2019s federal government, President Hassan Sheikh Mohamud has disclosed, citing the company\u2019s inability to finance its contractual obligations. Speaking in a recent podcast interview, President Mohamud did not<\/p>\n","protected":false},"author":12,"featured_media":7693,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-7694","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy"],"yoast_head":"\n