Coastline Exploration is committed to long-term involvement in East Africa as we seek to help develop the region’s hydrocarbon resources. While much investment has poured into Kenya, Uganda, Mozambique and Tanzania, we see tremendous potential for significant oil and gas discoveries in these and other countries within the region where prospective hydrocarbon basins have yet to be properly explored.
As a responsible business, our goal is to create a working environment in which our people are safe from harm, there is minimal environmental damage or negative societal impact and the economic benefits from our operations are widely shared.
As new hydrocarbon basins are opened we anticipate a timeline of between five and ten years from discovery to initial full-scale production. (This mirrors the reality of such frontier developments across the globe.)
Our exploration strategy is a reflection of the experience of our Board and Management in other, diverse areas of the world and will follow well-tested, oil industry processes and procedures. After payment of a bonus and initial fees to the host government (or its oil ministry) It is expected that in the initial exploration phase the host oil ministry will ask us to acquire 2-D seismic data and also drill an exploration well. In most cases this is expected to take up to four years. If a discovery is made, then the drilling of appraisal wells will shortly follow to delineate the size of the newly-discovered field. This groundwork, conducted in association with our consortium partners, such as Schlumberger, may take up to six years with the aim to implement a field development plan.
A field development plan involves engineering, construction and installation of surface production facilities and the drilling of, typically, twenty to forty production wells necessary to extract the hydrocarbons from the subsurface reservoirs. During this entire multi-year period we expect to be paying training fees, community development fees and lease rental fees to the respective host government(s). In addition, we expect to be hiring and training local employees, who will eventually be expected to manage the operation within the host country with a minimum of expatriate guidance. Last-but-not-least, we expect to provide seed capital and entrepreneurial momentum to kick start locally owned enterprises in service to the oil and gas industry.
We believe the oil and gas resources belong to the people of the region. We will work to spread the wealth generated in a responsible and transparent way.