Ethiopian government signs agreement with US firm on oil exploration in Afar
region
March
29, 2006 (ADDIS ABABA) — Ethiopian official said Wednesday that the Horn of
Africa country has signed an agreement on oil exploration with a U.S. firm.
The agreement was signed Wednesday between Ethiopia’s Ministry of Mines and
Energy and "Afar Exploration". It will enable the latter explore oil in northeast
Ethiopia’s Afar State. Under the agreement, the U.S. firm is granted an oil
exploration license that would enable it to prospect for crude oil in the
sedimentary basin in Afar State. It is given an exploration area covering 21,187
sq km.
At a signing ceremony, Ethiopia’s Minister of Mines and Energy Alemayehu Tegenu
said the Ethiopian government has paid due attention to the development of the
energy sector. Alemayehu said his ministry has designed a five-year strategic
plan, adding that oil exploration and development are important elements of the
strategic plan. The ministry will provide the necessary assistance to the U.S.
company to help it achieve its goal, he said.
Ethiopia granted
five oil exploration licenses in the past two years. The giant Malaysian
company, Petronas, took four licenses that enables it to prospect for oil in the
Gambella and Ogaden basins. This week the ministry conferred a license to
another Malaysian-based company, Pexco, which planned to search for oil in
Ogaden.
The Afar basin is one of the five sedimentary basins in Ethiopia. Unlike Ogaden
and Gambella the Afar basin is not yet explored. Ethiopia is endowed with energy
resources such as coal, oil and natural gas. Current natural gas reserves are
estimated to be 24 million cubic meters.
The production sharing agreement was signed by
Alemayehu Tegenu, minister of MME, and Mr Willima C. Athens, owner and general
manager of "Afar exploration". Mr Willima is a renowned American businessesman
who owns stocks on oil and gas market. He also runs a real estate company.
Sources: Various news agencies, for example
The Reporter
Comment: What will be the outcome for the Afar people is left to be seen!
What is the risk for people living on "rich" ground?
