Ethiopia Oil and Gas Report - Business Monitor International - Industry Reports

Ethiopia Oil and Gas Report

Ethiopia Oil and Gas Report - Business Monitor International - Industry Reports
Ethiopia Oil and Gas Report
Published Oct 08, 2016
61 pages — Published Oct 08, 2016
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Aside from disappointing exploration results, poor below-ground environment could drive away future investment. We note several issues, which could weaken investor interest: According to a survey by the USGS, the Ethiopian rift belt is a high risk exploration area, due to a range of poor geologic features, including limited petroleum source rocks. ...Both areas are highly remote, have limited infrastructure, pose significant security threats and face opposition by indigenous populations. Moreover, the country has a weak business environment, mired by high levels of corruption, cumbersome bureaucracy and numerous operational risks: High level insecurity: the on-going conflict with al-Shabaab, the fragmentation of tribal militia groups and the weakness of the central government have combined to fuel widespread violence and chronic instability. Legal ambiguity: Several regions have claimed autonomy or independence. ...Piracy: Despite a marked reduction in the incidences of piracy off the Somali coast, the continued presence of pirates in the area has prevented exploration of Somalia s prospective offshore acreage. All of the above will dampen investor interest in the country, should exploration fail to yield positive results over the next one to two years.

...Ethiopia s oil reserves are estimated at -.--mn bbl, while its gas reserves gas reserves stood at ---bcm in ----. We forecast these figures to remain stable across our forecast period to ----, although active exploration scene presents an upside risk to our current projections. ...We do not expect any crude production to commence until the end of our review period to ----. � We are sceptical of Hong Kong-based POLY GCL s plans to commence gas production in Ethiopia by ---- due to insufficient viable gas reserves and saturated LNG market in China. Unless any new significant hydrocarbons discoveries are made, we believe Ethiopia will not see any new gas production across the coming decade. ...The vast majority of fuels is imported from Sudan via Djibouti port. Kenya and Ethiopia are currently assessing feasibility of the products pipeline between the two countries.

...Historically, Ogaden basin has considered as the most prospective one. ...Calum is estimated to hold a -.- trillion cubic feet (tcf) of gas, while Hilala could hold around -.-tcf of gas. In ----, Petronas was awarded Petroleum Production and Sharing Agreements for these fields, but the company pulled out from Ethiopia in ---- due to rationalisation exercise , according to Bloomberg. Afterwards, Calum and Hilala were then taken over by Hong-Kong based PetroTrans, but the relationship between the company and the Ethiopian government ended in international arbitration. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Ethiopia Oil and Gas Report" Oct 08, 2016. Alacra Store. Oct 23, 2016. <>
Business Monitor International - Industry Reports. (2016). Ethiopia Oil and Gas Report Oct 08, 2016. New York, NY: Alacra Store. Retrieved Oct 23, 2016 from <>
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