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Ministry,
foreign Company sign $50 mln Petroleum exploration agreement
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 ADDIS
ABEBA(August 08,2008) - The
Ministry of Mines and Energy (MoME) and Falcon Petroleum Limited,
a company from Cyprus, signed an agreement enabling the later explore
and develop petroleum in the Abay Basin, around Wollo, in the Amhara
regional state.
Alemayehu Tegenu, Minister of MoME and Radhawan Sadik Hadi, Deputy
Managing Director of the company signed the agreement which grants
50 million USD for initial phase of the project on Thursday at the
Sheraton Hotel Addis Ababa.
"The ministry has granted Falcon Petroleum Limited, an exclusive
right that enables the company to engage in exploration and development
within the license area for the period specified in the agreement
and will have the right to extend as per the agreement", said
a statement from the ministry which highlighted the main elements
of the agreement.
According to the agreement, covering an of 25,875 square km, the initial
term of exploration period will be four years with possible extension
twice each for two years. The development and production period shall
be 25 years with possible extension of 10 years, the Minister said.
Accordingly the company shall give preference to the employment of
Ethiopian qualified nationals.
Alemayehu also said, "Today's event marks an extension of the
exploration in areas other than the historical Ogaden basin which
in itself contributes to our mind set as such petroleum opportunities
could exist in volcanic terrains and we will continue working in a
similar manner to attract oil companies to explore other parts of
the country."
To date, exploration agreement have been acquired which collectively
covers more than 70% of the surface coverage of the country, and this
is a significant success following which Ethiopia is foreseen to be
one of petroleum producing country in East Africa, he added.
Falcon petroleum Ltd is a company registered in Cyprus and is involved
in petroleum exploration in different parts of the world. In accordance
with the petroleum agreement signed, Falcon Petroleum Ltd shall have
exclusive right in the area to undertake petroleum exploration and
development.
This agreement encourages other companies to engage in petroleum exploration
on the surrounding areas of the basin, the statement added. |
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