ADDIS ABABA, ETHIOPIA – (APA) Ethiopia and a Canadian petroleum company on Thursday signed an agreement in Addis Ababa for the exploration of oil in several locations in the African country.
Ethiopian Ministry of Mines and Energy and the Calvalley Petroleum Inc, a Canada-based company, signed the agreement that allows the company to explore for oil and develop petroleum products in the Amhara, Tigray, Oromia, and Benishangul Gumuz States of Ethiopia.
Ethiopian Minister of Mines and Energy, Alemayehu Tegenu and Company Chief Executive Officer, Edmund M. Shimon, representing the company signed the agreement.
The company will be exploring for oil on more than 46,000 sq. meter area of land and will bear all the necessary costs.
“The initial term of the exploration period shall be 4 years to be extended twice for two years.
The total development and production period will be 25 years to be extended if required,” the agreement said.