Coastal is fully integrated company focussed on acquiring and investing in oil and gas production, energy infrastructure, services and assets across West Africa
Coastal’s initial focus will be on shallow water assets in West Africa, in particular in the core target markets of Nigeria and Angola, though in the future, the Company may invest across Africa and, where there is a marine evacuation opportunity, may consider onshore or swamp assets. Coastal intends to focus its search in relation to both the Acquisition and the Minority Investments on the oil and gas sector (including upstream and mid-stream opportunities), energy infrastructure, energy services and energy assets.
West African Shallow Water Assets
Coastal intends to undertake multiple Pre-FEED studies to identify a compelling set of investment and acquisition opportunities that it believe could be unlocked through our fully integrated model by driving a lower break-even costs per barrel.
Coastal’s proposed fully integrated approach looks to convert the process, storage and evacuation costs, usually the largest upstream expenditure for oil and gas companies, into a revenue stream, which Coastal believes could:
- Reduce its break-even dollar per barrel on investment
- Facilitate to decouple a portion of its income from oil price volatility; as the rental income is an opex expenditure and paid out before equity returns, thus enabling upstream operations to continue to pay charter rates so long as oil price is above total opex costs
- Eliminate third-party risk of delivery; providing greater comfort to asset/licence owners and lenders and unlocking transactions where a 360° solution is required and may not otherwise be plausible for stand-alone infra investors
Our proposed work in Nigeria is supported by an improved regulatory and fiscal regime environment and the opportunity to support local indigenous operators/licence holders who lack the balance sheet, process storage and evacuation expertise to bring assets into production.
Our business model
Fully Integrated Oil & Gas Company
An integrated approach enhances project execution efficiency, mitigates third-party reliance and the risks and conflicts typically encountered by pure-play upstream or infrastructure operators. It also reduces exposure to commodity price volatility and supports additional revenue streams
Engineering, Procurement & Construction Management
An in-house EPCM team which would be responsible for all topside and conversion planning, working closely with shipyards to execute the conversion of ocean-going vessels into FSOs/FPSOs, and the conversion of jack-up units into MOPUs.
Process, Storage & Evacuation
Provision of Process, Storage and Evacuation solutions such as oil, gas and condensate FPSOs, MOPUs and FSOs to any upstream operations acquired by the Company in addition to third-party asset owners.
Upstream Development & Asset Management
The Company would develop an internal capacity to carry out field development, asset management, field operations and maintenance (technical management).