International oil companies have resumed interest in new Ethiopian exploration concessions after Prime Minister Abiy Ahmed scrapped a National Bank of Ethiopia rule that forced oil and gas firms to keep foreign-currency accounts inside the country. The Reporter’s Kaleyesus Bekele wrote that the directive had frozen projects and stalled talks with the Ministry of Mines and Petroleum.
Firms named in the account included Poly-GCL, Africa Oil, New Age, Delonex Energy, Gazprom, and South West Energy. All had suspended work under the banking rule, a senior ministry official told the paper. Once offshore accounts were allowed again, the same official said companies returned to their blocks and asked for new acreage.
British firm Delonex had been negotiating for Ogaden basin blocks 10 and 14. The Council of Ministers had already approved a production-sharing deal, but Delonex paused until the banking obstacle fell. Ministry officials said signature talks would restart and that another international company was also negotiating a fresh exploration agreement.
New Age, which has reported about 1.6 trillion cubic feet of gas at Elkuran in the Ogaden, had likewise pressed for the rule change while it worked with the ministry on commercialising the find. Officials said open blocks were being prepared beyond the Ogaden as the sector came back from a standstill.
Sources: The Reporter