Ethiopia's untapped oil could propel them to super power status

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While home to one of the highest deposits of natural gas in Africa, Ethiopia did not take full advantage of this natural resource yet. But the government recently set the strategic goal of increasing the exploitation of this formidable mineral resources potential and turn the sector into a backbone of the country’s industry by 2020-2023

A new beginning for Oil and Natural gas exploitation in Ethiopia
Ethiopian-Petroleum-Supply-Enterprise.jpg

Logo of the Ethiopian Petroleum Supply Enterprise
Ethiopia is home to one of the highest deposits of natural gas in Africa. Some parts of the country’s geological structure resemble the oil and gas fields of the Middle East, particularly in the Ogaden basin. However, despite the commercially viable volumes of gas present in the country’s soil, Ethiopian regimes before 1991 have been unable to put together an arrangement to extract the gas, in part due to the consecutive regimes changes the country experienced. In 1972, natural gas fields were discovered by an American company, Tenneco, which was expelled in 1977 by the Derg. Following this expulsion, a former USSR company, Soviet Petroleum Exploration Expedition (SPEE), started exploring Ethiopia’s gas fields, but the company’s contractual agreement was also terminated in 1994 after the fall of the military regime. As a consequence, most of the country’s potential in oil and gas is still untouched.

This is why, in order to increase its foreign currency earnings, the government of Ethiopia set the strategic goal of increasing the exploitation of its formidable mineral resources potential ten-fold by 2023 and turn the sector into a backbone of the industry by 2020-2023. The strategies to reach this objective include delivering basic geological data to the civil and business sectors, attracting private investors in the development of the mining sector and issuing licenses to those engaged in mineral and petroleum operations. In addition, the development of mineral and geological energy resources of Ethiopia has to take place in an environmentally friendly manner and in collaboration with different stakeholders to regulate the market.

In addition, the Ethiopian government established in 2012 the Ethiopian Petroleum Development Enterprise that will engage in developing the gas fields in partnership with private companies.

Exploration and pipeline constructions
Several firms have already acquired licenses to explore more than 40 blocks throughout Ethiopia in the past four years, the vast majority of them in the south-eastern Somali Region. The country is planning to start producing and exporting natural gas from untapped reserves in the Calub and Hilala fields in its southeast region by next year. Studies reveal the Calub and Hilala fields have deposits of 4.7 trillion cubic feet of gas and 13.6 million barrels of associated liquids, both discovered in the 1970s but not yet exploited. According to Ethiopian Mines Minister Tolossa Shagi, the country expects to make an excess of 1 billion USD in annual foreign exchange earnings from gas exports thanks to these 4.7 trillion cubic feet natural gas reserves.

The company POLY-GCL Petroleum Group Holdings Ltd, a joint venture between the state-owned China POLY Group Corporation and the privately owned Hong Kong-based Golden Concord Group, has finished drilling two appraisal wells and will soon know the actual size of gas deposits in the south-eastern Somali Region. POLY-GCL plans to drill five wells in Ethiopia’s southeast, including three wildcat exploration wells. The project involves developing the fields and building a 700 km pipeline to transport up to 12 million cubic meters of gas from the Ethiopian hinterland to the coast of neighboring Djibouti, where it will build a 3 Metric Tonnes Per Annum (mtpa) liquefied natural gas (LNG) plant and export terminal. Initial construction is expected to take three years to complete. The plant’s capacity could eventually be extended to 10 mtpa. POLY-GCL estimates the cost of this construction at 4 billion USD and initially expected to start LNG production by mid-to-late 2018 at 3 million tons a year at first, rising to 10 million tons later. Another vast natural gas reserve recently found in Arbaminch could transform Ethiopia into a major natural gas producer.

In a recent remark, Prime Minister Hailemariam Desalegn said the nation would be ready to join the global natural gas market after two years. The Premier said that his administration is undertaking projects meant to sell the resource domestically and export it. This is a substantial step for Ethiopia. In fact, since the beginning of the millennium, the country has been building a diversified economy by improving productivity in the agricultural sector and supporting the rise of agro-processing, light manufacturing and infrastructure development. Additional foreign currency earned through natural resources could reveal itself to be an important support in the country’s endeavors to reach the status of middle-income country by 2025.
 
abahaaa was ---we are coming soon-

:gunsmiley::gunsmiley::gunsmiley::gunsmiley: kulahaa Ethopian oil -------- the resource is owned by Somali ethnicity- just wait we are coming back- and this time habash will not get a chance to eat -a raw meat, instead they will get bullet in their mouth:gunsmiley::gunsmiley::gunsmiley:
 
The oil pipeline is being constructed as we speak. The funny thing about this is that Ethiopia also found large deposits of natural gas in the Oromo region in the south west, which is second to Russia in terms of deposit.

Plus the government will station 10k troops to guard the new oil fields.
 
Why are they entering the oil economy now when countries who relay on them are trying to leave?
That's a false narrative that oil producing countries are trying to push. Oil will be commercially used in the world for the next 100+ years. The reason why the ME is trying to diversify their economies is because they will run out of oil within the next decade or two. New Pipelines and oil exploitation is taking place throughout the world, from the USA to Europe.

The reason why they are starting so late is because of the great instability in the region. They've been more or less trying since the 80's but the civil war did not leave much room to exploit the resource. Since 2005 the Ethiopian government have been on a developmental whirlwind, nothing is being left untapped from the gold mines to the many rivers.

They should have lowkey waited till GERD is operational so that they could have extracted the oil themselves but oh well. The oil fields go operational late 2018.
 

Apollo

VIP
I wonder what the world would be like if all the Arabian oil was under the Horn instead, lol.

I doubt we would be stirring up shit like the Gulf Arabs do.
 
While home to one of the highest deposits of natural gas in Africa, Ethiopia did not take full advantage of this natural resource yet. But the government recently set the strategic goal of increasing the exploitation of this formidable mineral resources potential and turn the sector into a backbone of the country’s industry by 2020-2023

A new beginning for Oil and Natural gas exploitation in Ethiopia
Ethiopian-Petroleum-Supply-Enterprise.jpg

Logo of the Ethiopian Petroleum Supply Enterprise
Ethiopia is home to one of the highest deposits of natural gas in Africa. Some parts of the country’s geological structure resemble the oil and gas fields of the Middle East, particularly in the Ogaden basin. However, despite the commercially viable volumes of gas present in the country’s soil, Ethiopian regimes before 1991 have been unable to put together an arrangement to extract the gas, in part due to the consecutive regimes changes the country experienced. In 1972, natural gas fields were discovered by an American company, Tenneco, which was expelled in 1977 by the Derg. Following this expulsion, a former USSR company, Soviet Petroleum Exploration Expedition (SPEE), started exploring Ethiopia’s gas fields, but the company’s contractual agreement was also terminated in 1994 after the fall of the military regime. As a consequence, most of the country’s potential in oil and gas is still untouched.

This is why, in order to increase its foreign currency earnings, the government of Ethiopia set the strategic goal of increasing the exploitation of its formidable mineral resources potential ten-fold by 2023 and turn the sector into a backbone of the industry by 2020-2023. The strategies to reach this objective include delivering basic geological data to the civil and business sectors, attracting private investors in the development of the mining sector and issuing licenses to those engaged in mineral and petroleum operations. In addition, the development of mineral and geological energy resources of Ethiopia has to take place in an environmentally friendly manner and in collaboration with different stakeholders to regulate the market.

In addition, the Ethiopian government established in 2012 the Ethiopian Petroleum Development Enterprise that will engage in developing the gas fields in partnership with private companies.

Exploration and pipeline constructions
Several firms have already acquired licenses to explore more than 40 blocks throughout Ethiopia in the past four years, the vast majority of them in the south-eastern Somali Region. The country is planning to start producing and exporting natural gas from untapped reserves in the Calub and Hilala fields in its southeast region by next year. Studies reveal the Calub and Hilala fields have deposits of 4.7 trillion cubic feet of gas and 13.6 million barrels of associated liquids, both discovered in the 1970s but not yet exploited. According to Ethiopian Mines Minister Tolossa Shagi, the country expects to make an excess of 1 billion USD in annual foreign exchange earnings from gas exports thanks to these 4.7 trillion cubic feet natural gas reserves.

The company POLY-GCL Petroleum Group Holdings Ltd, a joint venture between the state-owned China POLY Group Corporation and the privately owned Hong Kong-based Golden Concord Group, has finished drilling two appraisal wells and will soon know the actual size of gas deposits in the south-eastern Somali Region. POLY-GCL plans to drill five wells in Ethiopia’s southeast, including three wildcat exploration wells. The project involves developing the fields and building a 700 km pipeline to transport up to 12 million cubic meters of gas from the Ethiopian hinterland to the coast of neighboring Djibouti, where it will build a 3 Metric Tonnes Per Annum (mtpa) liquefied natural gas (LNG) plant and export terminal. Initial construction is expected to take three years to complete. The plant’s capacity could eventually be extended to 10 mtpa. POLY-GCL estimates the cost of this construction at 4 billion USD and initially expected to start LNG production by mid-to-late 2018 at 3 million tons a year at first, rising to 10 million tons later. Another vast natural gas reserve recently found in Arbaminch could transform Ethiopia into a major natural gas producer.

In a recent remark, Prime Minister Hailemariam Desalegn said the nation would be ready to join the global natural gas market after two years. The Premier said that his administration is undertaking projects meant to sell the resource domestically and export it. This is a substantial step for Ethiopia. In fact, since the beginning of the millennium, the country has been building a diversified economy by improving productivity in the agricultural sector and supporting the rise of agro-processing, light manufacturing and infrastructure development. Additional foreign currency earned through natural resources could reveal itself to be an important support in the country’s endeavors to reach the status of middle-income country by 2025.
Keep Dreaming mate. Ogaden belongs to Somalia. :hemad:
 
That's a false narrative that oil producing countries are trying to push. Oil will be commercially used in the world for the next 100+ years. The reason why the ME is trying to diversify their economies is because they will run out of oil within the next decade or two. New Pipelines and oil exploitation is taking place throughout the world, from the USA to Europe.

The reason why they are starting so late is because of the great instability in the region. They've been more or less trying since the 80's but the civil war did not leave much room to exploit the resource. Since 2005 the Ethiopian government have been on a developmental whirlwind, nothing is being left untapped from the gold mines to the many rivers.

They should have lowkey waited till GERD is operational so that they could have extracted the oil themselves but oh well. The oil fields go operational late 2018.

is china extracting it then?
 
The Ogaden is very big and even if Ethiopia brings tens of thousands of troops, it cannot guard the pipelines.
Local populations can easily derail this entire project by destroying those pipelines, or even sending a few threatening letters to the companies investing there.
ONLF put the entire project back a decade in 2007 when they attacked a Chinese facility and killed almost 70 people, including several Chinese.

If people are not getting a fair and equitable piece of the value that their resources generate, they have every right to resist the resource exploitation process through any means.
 

Ras

It's all so tiresome
VIP
So far no oil or gas has been confirmed just surveys that predict high probability of natural gas.

If there really was trillions of cubic ft of gas then we'd have Chinese "peacekeepers" keeping the place on lockdown instead of inept Liyu soldiers.

The Ethiopians should just create powerplants and use the natural gas to power more industrial parks.

You can only export natural gas through pipelines and LNG plants near ports. Not sure how viable that would be if your pipeline has to go through thousands of miles of hostile land.

Also the nearby ports are in unstable regions with promiscuous leaders.

One call from the UAE could get Hargeisa or Djibouti to block gas exports.

Hence why none of the big energy players are interested in it.
 
So far no oil or gas has been confirmed just surveys that predict high probability of natural gas.

If there really was trillions of cubic ft of gas then we'd have Chinese "peacekeepers" keeping the place on lockdown instead of inept Liyu soldiers.

The Ethiopians should just create powerplants and use the natural gas to power more industrial parks.

You can only export natural gas through pipelines and LNG plants near ports. Not sure how viable that would be if your pipeline has to go through thousands of miles of hostile land.

Also the nearby ports are in unstable regions with promiscuous leaders.

One call from the UAE could get Hargeisa or Djibouti to block gas exports.

Hence why none of the big energy players are interested in it.
Ethiopia currently does not use a large amount of oil. With cheap electricity it has no real need to keep the oil. It's better to sell it and earn dollars to do more developmental work. The region is hostile but theirs no other options so it will proceed.
 
Ethiopia currently does not use a large amount of oil. With cheap electricity it has no real need to keep the oil. It's better to sell it and earn dollars to do more developmental work. The region is hostile but theirs no other options so it will proceed.
Natural gas can only be profitable if it's sold to neighboring countries with cold winters like in Europe, the processing and shipping alone can throw Ethiopia into more debt, couple that with long miles of pressurized pipelines and huge expensive LNG storage facilities, pipe vandalism, low demand for natural gas, and paying another country to use there ports to export gas, you'd be lucky if u even get close to breaking even, china will be getting free gas if it even makes it to the port, theyd be throwing u guys into more debt like they did to kenya (3.4billion$ for 250 miles of track),

And good luck keeping those long expensive pipelines secured from the real owners of the gas:icon lol:
 
Natural gas can only be profitable if it's sold to neighboring countries with cold winters like in Europe, the processing and shipping alone can throw Ethiopia into more debt, couple that with long miles of pressurized pipelines and huge expensive LNG storage facilities, pipe vandalism, low demand for natural gas, and paying another country to use there ports to export gas, you'd be lucky if u even get close to breaking even, china will be getting free gas if it even makes it to the port, theyd be throwing u guys into more debt like they did to kenya (3.4billion$ for 250 miles of track),

And good luck keeping those long expensive pipelines secured from the real owners of the gas:icon lol:
Ethiopians are 10x more competent than Kenyans. They usually get a decent deal from China and some even get cancelled if they find better routes. The Somali region will benefit enormously as they get a percentage of the revenue for their domestic budget. The pipes will be 30 feet underground so there's no way of getting to them, plus Ethiopias security apparatus is strong. There's more natural gas in Ethiopia in the Oromo region so this is a great start!
 
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