Tullow Oil disclosed it has started talks with the Ethiopian government to extend its exploration license.

According to Reuters, out of the four wells Tullow drilled in Ethiopia in the past two years, Tullow found encouraging hydrocarbon finds only in two of them. On the other hand, the company with its partner Africa Oil, has struck commercially viable deposits of oil in Kenya.

Nonetheless, Tullow has still decided to press on in Ethiopia.

The firm noted, “The hydrocarbon shows in the South Omo basin wells are indicative of a working petroleum system and therefore the acreage in southern Ethiopia remains prospective”.

"We are engaged in licence extension discussions ... and we are currently examining the substantial volume of drilling and seismic data collected to decide our future exploration plans for the southern Ethiopian acreage."

The firm also revealed it suspended drilling activities and reduced staff in the Horn of Africa nation.

Source: Reuters Africa