As the world notices East Africa’s Oil & Gas boom, more and more investors are turning for opportunities in east African countries, one of them being the landlocked country, Ethiopia. Specifically, the vast Ogaden desert region of Ethiopia is receiving the most attention. Drilling here has not been active however this is no longer the case.

What makes Ethiopia such a hot spot for Oil & Gas exploration is the fact that Ethiopia is situated on the very same oil-bearing strata as the massive discovery in Kenya. Early approximations reveal that Ethiopia is comprised of oil reserves of roughly 2.7 billion barrels.

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Ethiopia’s first oil seep was in 1860, and believe it or not that was the first and last time (besides minor exploration where nothing significant was found) that the country has produced any oil.

Gas was however discovered in 1972, but because of the country’s instability, further development was prevented.

Currently in the western region of Ethiopia there is drilling activity which is taking place on an extension of its Kenya concessions, believed to be part of East Africa’s Tertiary Rift that also embraces Uganda and its rich Lake Albert field.

Exploration in Ethiopia poses certain obstacles that need to be challenged. Such challenges are concerned with fairly remote operating environments. Another challenge for investors is that in contrast to most countries, the government is in no way enthusiastic about promoting expectations of vast oil and gas wealth.

Major oil or gas discoveries could transform the country’s economy, which is totally reliant on energy imports. Eritrea, which lies at the southern end of the Red Sea, is said to comprise the geological features of a major hydrocarbon bonanza, predominantly offshore.

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