August 19, 2008
Ethiopia, US Company Sign Petroleum Exploration Agreement
Text of report in English by state-owned Ethiopian news agency ENA website
Addis Ababa, 19 August: Ministry of Mines and Energy and Titan Resources Corporation, a US-based company, signed on Tuesday [19 August] an agreement that enables the latter to explore and develop petroleum around the Nile and Ogaden basins located in Amhara [northwestern] and Somali [southeastern Ethiopia] States respectively.Minister of mines and energy, Alemayehu Tegenu, and international representative of the company, Victor Nersesov, signed the accord.
According to the agreement, the development and production period that covers an area of more than 100,000 square meter area of land in the stated basins will be 25 years and may be extended as appropriate.
After signing the accord, Alemayehu said the Ethiopian government has been striving to efficiently utilize the natural resources of the nation.
In his message transferred through Nersesov, company president, Nelson B Hunt, said the agreement will help the company to strengthen cooperation with the ministry in the years ahead. Nersesov also said the company has a rich experience and great achievements in petroleum exploration and development endeavours worldwide including in some of the African countries. Titan Resources Corporation in collaboration with Capitan Energy Corporation, joint venture, will execute the petroleum exploration and development project in Ethiopia.
Chief executive officer of Capitan Energy Corporation, Kery Smith, said his company has already earmarked one million US dollars to train Ethiopian professionals, who are to take part in the petroleum exploration and development endeavour.
Some 60 million US dollars is earmarked to the initial term of exploration period, which covers four years.
Originally published by ENA website, Addis Ababa, in English 19 Aug 08.
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