ADDIS ABABA (Reuters) – Ethiopia’s dictatorial regime and U.S.-based Trans Global Petroleum on Wednesday signed an exploration and production sharing deal for the Horn of Africa country’s Greater Afar Block.
“The agreement … provides exclusive right for the company to engage in exploration and development of petroleum covering 109,304 square km (42,200 square mile) in Afar commonly known as Afar Triple Junction, Tigray and the Amhara regions,” Minister of Mines Alemayehu Tegenu said at the signing ceremony.
“The basins have potentials of hydrocarbon habitat,” he said.
The exploration will last four years and can be extended twice while the development and production period is set at 25 years with a possible extension, according to the agreement.
Nick Abraham, president and general manager of Trans Global Petroleum, said his company views “Ethiopia as a perspective country for petroleum deposits that only requires serious and effective work to unlock the resources.”
Trans Global Petroleum is the third American company to sign a petroleum exploration agreement with Ethiopia this year.
Falcon Petroleum Limited initialed a deal for the Abay (Nile Basin) in the Amhara region in August.
Titan Resources Corporation also signed an agreement for the exploration of petroleum in Abay and the Ogaden Basin in Somali region in August, the ministry said.
About 15 international companies including Malaysia’s Petronas are engaged in oil exploration in different parts of the country.
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