Tullow Oil to Begin Exploration in Ethiopia

June 11, 2012-Tullow Oil, a UK company, is set to start drilling its first well in Ethiopia by the end of this year. Tullow has hired a drilling company to start operation in October according to sources. It is to be remembered that Tullow bought a 50% stake in a concession in a South Omo Valley from Africa Oil. The concession was originally farmed out to Africa Oil by British company White Nile which has been prospecting for oil in the South Omo Valley since 2005


Tullow was recently in the news for having struck oil in the Turkana Basin in Kenya.

The Turkana and Southern Omo basins are said to have similar geological feature according to expert sources. The similarities are cause for hope although it is hard to be certain before drilling commences said Sinkenesh Ejiigu, Minister of Mines speaking to the House of Representatives last week.

In related news BGP Geo Services plc, a Chinese oil company conducting seismic surveying in South Omo, has filed suit against MIDROC for failing to construct a bridge over the Omo River as per the agreement struck between the two companies when BGP contracted MIDROC to build a bridge over the Omo River.

BGP required the bridge to transport machinery to be used in conducting its seismic Survey a task it was subcontracted to conduct by Tullow Oil. The agreement set the cost of constructing the bridge at 1 million birr and MIDROC took 306 thousand birr in advance payment according to sources.

The construction company however failed to construct the bridge forcing BGP to rent a boat to haul machinery and causing the disgruntled management to file suit against MIDROC at Lideta High Court explained sources.

Source: The Reporter