Thursday, April 25, 2013

Desalegn says "too early" to conclude oil discovery in Ethiopia

(April 24, 2013, (ADDIS ABABA))--Ethiopian Prime Minister, Hailemariam Desalegn, said that recent reports alleging oil discovery in the horn of Africa’s nation are misleading. Addressing a parliament session on Tuesday Hailemariam told lawmakers that the drilling work is in its early stage and any conclusions of oil discovery are only based on unfounded suspicions.

He further said that the uncertain claims of oil discovery disseminated by oil companies are only intended to secure loans. "We don’t have to be confused that these companies always rush to the media whenever they get a sign of oil discovery in order to get loan –meaning for the sake of securing loan for them [run the project]", he said.

Hailemariam was referring to the London-based oil exploration company (Tullow Oil) which found crude oil in Kenya last year and currently engaged in petroleum exploration in Ethiopia’s South Omo valley to find out if there is an oil basin extended from resources in neighbouring Kenya.

He said although the oil company alleged that it found a sign of oil discovery that however doesn’t necessarily mean that it is economically feasible for the company to start oil production. "It needs further and additional analysis to reach conclusion that it is economically feasible for production," he stressed. Read more from Sudan Tribune »

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