By Kaleyesus Bekele

The British petroleum company, Tullow Oil, last Saturday announced its decision to prospect for oil in the south Omo valley, in southern Ethiopia. Tullow Oil discovered a huge deposit of crude oil in the Lake Albert basin in Uganda. Tullow said that it has signed an agreement with the Canadian oil company, Africa Oil, which enables them to jointly prospect for oil and gas in the South Omo Valley in Ethiopia and in different locations in Kenya.

Last year Africa Oil, the Vancouver-based company, bought exploration areas in the Ogaden basin, Kenya and Puntland. These concessions were previously held by Lundin Petroleum, the Swedish petroleum company. Recently, Africa Oil had also bought an exploration area covering 29,465 sq. km in the South Omo basin from White Nile, a British company.

Tullow Oil has bought a 50 percent stake in Africa Oil’s concession in Omo Valley and in four blocks in Kenya - 10BB, 10 A, 12A and 13T. The companies agreed to jointly prospect for oil and develop petroleum resources.

According to the agreement, Tullow Oil will reimburse the costs Africa Oil had incurred previously. The companies will share future exploration costs. Tullow Oil has discovered more than 2.5 billion barrels in the Uganda’s Albert basin.

Tullow Oil’s exploration manager, Mr. Angus McCoss, said that he was delighted with his company’s decision to extend its concessions in East Africa to Ethiopia and Kenya. Angus McCoss expressed his company’s commitment to explore the new areas in Ethiopia and Kenya with new partners. “Rift basins are the focus areas for Tuollow Oil and we hope to undertake a commendable job in Ethiopia and Kenya,” he said.

An industry analyst told The Reporter that the East Africa Rift System had an enormous oil potential. The East Arica Rift System covers Sudan, Ethiopia, Kenya, Tanzania and Uganda. The analyst said the oil discoveries in the Sudan in recent years and more recently in Uganda had attracted the attention of oil companies. Tullow Oil’s decision to work in Ethiopia and Kenya is a good news to the two countries.

Tullow Oil has 85 petroleum production sharing agreements and licenses in 23 countries in Africa, Europe, South America and South Asia. In Africa the company has petroleum inertest in Gabon, Mauritania, Congo Brazzaville, Côte d'Ivoire and Uganda. Africa Oil is engaged in oil exploration projects in Ethiopia, Puntland and Kenya.

EthiopianReporter