Ethiopia to allow US company produce gas and oil – New Business Ethiopia
Friday’s announcement by the Government of Ethiopia indicated its willingness to issue a license to a United States company in order to begin long-awaited oil and gas production.
This is indicated by Eng. Takele Uma, Minister of Mines of Ethiopia, who received a study result about the economic feasibility of Ethiopia’s natural gas and oil by the joint company of the United States and the Netherlands – Netherlands, Sewell & Associates, Inc. (NSAI).
“…My grandfather used to say we have natural gas. I can proudly state that we have what we have. This shows that we can bring in credible companies with technology finance, experience and expertise to transform for domestic and export purposes. [oil],” said Eng. Takele Uma.
“This time tells us that if we come together and move forward, the time to prosper Ethiopia is make sure very near. I am confident that we will bring American companies to invest in our natural resources, especially gas. Because this time is in Ethiopia and Africa …everybody is looking for natural gas…This time Ethiopia is standing firm to produce natural gases…” said Eng. Takele Uma.
Eng. Takele Uma stated, “This is the first time that Ethiopia has gotten a clear estimate of the volume of its oil and gas reserves in three locations.” “We never had a report like this…We used to hear from companies before that we may have around 2 trillion cubic feet of crude oil,” he said. “Our volume of reserves calculated from the three different fields in the Ogaden Basin (Calub, Hilala, Dohar) is 7 Trillion Cubic Feet (7TCF),” Eng. Takele said.
It was five years ago that the Ministry of Mines of Ethiopia had been founded. NSAI was awarded the oil and gas reserve evaluation.
“..It is up to the Government of Ethiopia to decide based on our evaluation what to do with the resource,” said the research company representative who submitted the evaluation report to Eng. Takele Uma, Minister for Mines of Ethiopia.
“This report doesn’t change anything tomorrow. It is going to take years…The vision [to invest]It is about the Future. The vision is not about the past…The vision is about next ten years, fifteen years,” he said.
“…Do you want to invest for the betterment of Ethiopia through oil and gas? Or are there other options that you can choose from? These are the choices you will have to make. We cannot prepare the analysis. Now comes the hard work. Eng. Takele Uma stated, “This is the first time that Ethiopia has a clear estimate of the volume of its oil and gas reserves in three locations.”
It is recalled that not long after Prime Minister Abiy Ahmed came to power in mid 2018, the tax haven Virgin Island-registered Chinese company – Poly GCL, announced commencing gas production in Eastern part of Ethiopia Somali region, Ogaden area. Later media reports indicated that there was disagreement between the Ministry of Mines (China) and the Chinese Company.
Observers of the long relation between Ethiopia and the United Sates think that the strategic decision of the Government of Ethiopia to bring aboard a company of the United States to develop its oil and gas resources is likely to boost the support of President Biden administration to Prime Minister Abiy Ahmed’s administration.
EDITOR’S NOTE: VIDEO FULL SPEECHES MAY BE FINDED AT THE MINISTRY of MINES.
https://youtu.be/y9iXFjgGw5g
Source: newbusinessethiopia
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