Ethiopia Gets Natural Gas Reserves Certificate

ADDIS ABABA – Ethiopia has received the first natural gas reserves certificate after a U.S. Firm completed an assessment to verify the extent of natural gas and oil reserves in the country.

“We have officially received the gas reserves certificate,” declared Takele Uma, minister of Mines, on Friday.

The minister said the certificate is an “assurance of the availability and commerciality of natural gas and crude oil in Ethiopia.”

“This gives us the leverage to attract reputable companies to work with & develop our natural gas,” Takele added.

The ministry and the Netherland, Sewell & Associates, Inc (NSAI), signed the agreement to assess the potential of Ethiopia’s oil and gas resources in March 2022.

Since then, the U.S. petroleum property analysis and consulting firm has been conducting the assessment of the gas reserves in the Ogaden basin in Somali region.

It’s five month work which was based on explorations conducted at a 3,500 Square Kilometres area in the basin concluded with the production of an assessment and economic evaluation report.

The vice president of the consultancy firm, Joseph M. Wolfe handed over the Report to the minister of Mines Takele in an event held at the Ministry of Mines headquarters on Friday.

NSAI vice president Joseph told the attendants that the report documents “the opportunities available and evaluates the recoverable hydrocarbons that are potentially producible in the Ogaden basin.”

According to the vice president, the report brings two major benefits for Ethiopia.

First, Joseph claimed that the report represents the name of the NSAI – a brand name well-known in the financial world.

Such reports of NSAI, he said, have been used in the International public offerings (IPOs) for securing financing, looking for investors and acquisitions.

“It represents something that you take to potential investors and share with them. They are going to know that there is a certain quality associated with the reserves,” he added.

Secondly, Joseph also stated that the report documents the potential for Ethiopia to provide natural gas and oil for its own domestic needs in the future.

Ethiopia’s Volume of Reserves calculated from the three different fields in the Ogaden Basin (Calub, Hilala, Dohar) is 7 trillion Cubic Feet (7TCF), as per the Ministry of Mines.

Authorities expect the assessment and evaluation will help the natural gas resource to be utilized for fertilizer and energy investments.