Coastal intends to target assets at varying stages of maturity from both an upstream and evacuation perspective, driven by free cash flow generation and a wide margin of safety, which typically feature significant embedded upside through staged development plans.
The Company may target “stranded jewels” (formerly prolific assets whose production has dwindled), proven stand-alone shallow water brownfields with existing appraisal wells or cluster developments.
Additionally the Company may also seek to undertake investments in processing, storage and evacuation facilities through the provision of FSPOs, MOPUs and FSOs.
Cluster Developments
Selectively advance the most economically attractive field within a cluster as an anchor development on a standalone basis, leveraging the infrastructure to provide processing, storage, and evacuation services to adjacent fields through shuttling or pipeline at rates materially more competitive than an independent development.
Stranded Jewels
Once prolific assets whose production has dwindled due to dilapidated infrastructure and underinvestment, yet have significant remaining untapped recoverable resources that require a marine led solution to unlock production.
Proven Brownfields
Proven standalone shallow water brownfields, with existing appraisal wells reducing reservoir risk. Typically developed in a sequenced approach producing through the usage of an Early Production Facility prior to embarking on the drilling further wells and installing the permanent process, storage and evacuation facilities.
FPSO, MOPU & FSOs
Under specific circumstances, Coastal may seek to undertake standalone investments in processing, storage, and evacuation facilities through the provision of FPSOs, MOPUs and FSOs. These may be structured as either a fixed day rate or on a dollar per barrel (or a combination thereof) as a time charter or bareboat contract.
Execution Strategy
The Company aims to acquire and invest in oil & gas assets, infrastructure and services, with an initial focus on West Africa. The execution strategy is to integrate upstream development, asset management and evacuation. This supports better alignment of interests and the delivery of bespoke asset strategies, enhancing execution efficiency, asset returns and reduces execution risk. This more efficient and proven approach drives additional revenue streams, lowers execution cost and mitigates exposure to resource price volatility.