Some info on Ethiopian oil.
From
Department of Energy
Ethiopia's current proven hydrocarbon reserves are minimal, but the potential to increase reserves to commercial viability is seen as promising. The country's geology is similar to that of its oil-producing neighbors to the east (on the Arabian peninsula) and the west (Sudan). In April 2001, the Ministry of Mines and Energy reported that hydrocarbon seeps had been discovered in several regions. The government plans to conduct feasibility studies to establish the extent and viability of the deposits.
Hydrocarbon exploration in Ethiopia's Ogaden Basin began over 80 years ago (Standard Oil in 1920). The Ethiopian government formed the Calub Gas Share Company (CGSC) to develop the fields. In 1994, the World Bank approved a $74 million loan to develop the Ogaden Basin fields. The Ethiopian Privatization Agency (EPA) put the CGSC up for privatization in 1998, but the EPA, citing weak bids, withdrew the tender. In December 1999, Houston-based Sicor announced that it had signed a $1.4 billion joint-venture deal to develop the Calub natural gas project. Under the terms of the agreement, Gasoil Ethiopia Project (GEP), the joint-venture firm, will acquire 95 percent of the CGSC under the Ethiopian government's privatization law. Currently, 5 percent of the CGSC is held by local private investors. The Ethiopian government will hold a 20 percent interest in GEP with Sicor holding the remaining share. GEP plans to construct a 375-mile, 24-inch pipeline to transmit natural gas to the town of Awash, which is approximately 75 miles east of the capital Addis Ababa. At Awash, plans call for construction of a cryogenic liquids plant and two gas-to-liquids process systems with capacity to process 200 million cubic feet per day (Mmcf/d) of natural gas. The end products would be synthetic fuels and petrochemical feedstocks plus steam to generate electricity and help produce 20,000 bbl/d of potable water. A planned refinery would produce products including diesel, gasoline, kerosene and jet fuels. The gas-to-liquids system would also produce some 500 tons of ammonia per day as feedstock for a urea plant to be constructed. Construction of the pipeline had originally been planned for 2002; however, gas development in Ogaden has not yet begun.
In June 2003, the Ethiopian government signed an oil exploration deal with Petronas for 5,800 square mile tract in Gambela, in the far western part of the country. The region is closely related to the Sudan oil fields. Petronas has committed to investing in regional infrastructure, employing local staff, improving health services, and developing the skills of the ministry of Mines. Petronas is also interested in natural gas exploration in Ogaden, but no official plans have yet been made.
From Chinese Newspaperhe oil exploration well in Ethiopia's west state of Gambella has turned out dry, it was learned in Addis Ababa on Saturday.
The drilling work on the first exploration well, which is 3,500 meters deep, was recently finalized, said Li Jianjun, chief representative of the Chinese oil firm Zhongyuan Petroleum Exploration Bureau (ZPEB).
After conducting a well test to ascertain if there was oil in the area, ZPEB experts concluded there was no oil inflow in the well, Li told Xinhua.
ZPEB, which had been contracted by the Malaysian oil firm Petronas, has been prospecting for crude oil for the past two years in the Gambella basin, near the Sudanese border. Since 2004, ZPEB has been conducting seismic surveys in the Gambella basin. In March this year, ZPEB started drilling the exploration well in the area.
The Gambella basin is one of the five sedimentary basins found in Ethiopia, which are expected to be oil prospective.
The well was drilled in Chikaw, 175 km east of the Ethio-Sudan boarder and 85 km from Gambella, capital of the Gambella state. The Gambella basin stretches across a 19,600 square km of land. The Gambella basin is an extension of the Melut basin, located in southern Sudan. The Melut basin is known for its huge amount of oil reserve.
However, ZPEB experts said one cannot conclude that there was no oil reserve in the Gambella basin just by looking at the well testing conducted on only one well.
Li said ZPEB will undertake another seismic survey in the basin in the dry season as the current rainy season have interrupted their exploration activity.
After studying the geological formation in the first well and conducting a new seismic survey in the area, ZPEB experts will identify where to drill an additional exploration well, he said.
Looks like theres more potential for natural gas in Ethiopia than oil.
"The age of excess is over. The age of entropy has begun"