The actual blocks that the company has submitted a proposal for are yet to be disclosed as the proposal is being evaluated by experts in the Petroleum Licensing and Administration Section of the Ministry of Mines.
The MoM awards concession upon negotiation with companies unless there are several companies interested in the same block in which case the ministry floats a tender according to officials.
Ministry experts evaluate the financial and human resource capacity of interested companies in terms of being able to successfully undertake exploration before launching negotiations.
The Abay basin has nine blocks three of which are under exploration by Falcon Petroleum while the Ogaden Basin has a total of 22 blocks with Petro Trans carrying out exploration work on 8 blocks. The Ethiopian owned South West Energy is undertaking exploration activities on three blocks which acquired from Malaysian oil company Petronas which halted activities after investing 350 million US dollars.
It is to be remembered that natural gas was discovered at Hilala and Calub in the Ogaden basin with reserves estimated at 84.9 billion meter3 at its center.
Dutch Pexco Exploration also has four blocks in the basin while Canadian Africa Oil has 2 blocks after relinquishing two more five months ago leaving five available blocks in the basin.
Petra Energyia is a privately owned company based in Rio de Janeiro and mainly operating in South America.
Source: Addis Fortune
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