Nine oil exploration companies are actively operating in Ethiopia with an estimated investment of 2.4 billion US dollars according to the Ministry of Mines.
The exploration companies are primarily operating in Afar, Gambella, Middle Abay, Rift Valley, South Omo Somali and Ogaden areas said Bacha Fuji, Director of Public Relations with the Ministry.
The companies are at different stages of the exploration process he said.
The Ministry has earned above 16.23 million birr from land rent, licensing, training and related activities noted Bacha.
The number of companies interested in oil exploration is showing an increase with PetroTrans Company ltd licensed to explore in Ogaden in this financial year. Negotiations are also underway with a company interested in developing the Gambella basin for oil exploration and development he added.In related news Tullow Oil, a UK company, is set to start drilling its first well in Ethiopia by the end of this year. Tullow has hired a drilling company to start operation in October according to sources.
It is to be remembered that Tullow bought a 50% stake in a concession in a South Omo Valley from Africa Oil. The concession was originally farmed out to Africa Oil by British company White Nile which has been prospecting for oil in the South Omo Valley since 2005.
Tullow was recently in the news for having struck oil in the Turkana Basin in Kenya.
The Turkana and Southern Omo basins are said to have similar geological feature according to expert sources. The similarities are cause for hope although it is hard to be certain before drilling commences said Sinkenesh Ejiigu, Minister of Mines speaking to the House of Representatives last week
Source: Ethiopian News Agency
