Ethiopia prepares oil policy – New Business Ethiopia



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Ethiopia prepares oil policy

The Ethiopian government, which considers oil and gas the main source of income in the coming years, has developed an oil policy.

On Friday, the first draft of the country's oil policy was presented to representatives of civil society and leaders of opposition political parties who commented on the draft policy to be implemented over the next fifteen years. After including comments from different segments of society, the Ministry expects the policy to be finalized in the coming months.

The policy involves issues such as how companies should conduct their business as well as the benefits of local oil industry communities, among others. It also deals with import substitution of oil, improving the performance of the industry giving a clear direction.

"Politics will be a tool that can show us our future, the place and the position we will be in the next few years in relation to our oil initiative," said Merga Kenea, Ethiopia's Transparent Extractive Industries Initiative.

In Ethiopia, today, the Chinese company Poly-GCL is involved in the test of production of natural gas and crude oil in the Ogaden basin. The basin is expected to have 4.7 trillion cubic meters of natural gas reserves.

In a related development this week, Ethiopia's Ministry of Mines and Petroleum has granted mining exploration license to eight companies. The licenses are granted to Africa Mining and Energy, Agodayeo Metals and Other Minerals, Altaw Resources Limited, Himra Mining, Sekota Mining PLC, Aiga Trading Industries and Sun Pick Ethiopia to exploit minerals in the Afar, Amhara and Tigray of Ethiopia.

Ethiopia's income from mineral exports has increased in recent years. Meanwhile, last year's export performance was disappointing mainly due to political instability.

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