GPB Global Resources B.V has recently signed an agreement with the Ethiopian government with its primary focus set on oil exploration for a period lasting up to seven years. The deal allows for a further 25 years of oil production should the company discover high-yielding oil fields.
The company has invested well over $60 million that will be used to handle expenses accrued from survey exercises and drilling of the test wells. The focus region is Afar, lying at the heart of the Rift Valley with an area of 42000 Km2. The region is typical for oil exploration as most oil discoveries were made in specific areas lying along the Rift Valley in East Africa. The Great Rift Valley extends to Yemen, which is a distinguished Oil producing country.
The eastern part of Ethiopia has, in recent times, been established to have natural gas reserves even though the country has not produced any oil or natural gas in the past. GPB Global Resources B.V, however, is confident that it will discover lucrative oil fields considering that both the neighboring countries, Kenya and Uganda, have commercially exploited the oil fields located on their sections of the Rift Valley.
Sergey Tagashov, the Executive Director for Corporate Communications at the company, expressed his optimism towards the deal by pointing out the political stability in Ethiopia as well as the substantial economic growth in the country. He went on to say that the massive population in Ethiopia of about 90 million people is an added incentive to the choice of investment the company is making.
It is for these reasons that global companies such as the Chinese-based GCL-Poly Holdings and the Hong Kong-based Southwest Energy, exploit various investment opportunities in Ethiopia. GPB Global Resources has maintained that in the event, the discovery only allows for limiting production inhibiting exportation through the main pipelines, petroleum produced locally will serve these costs.
The government of Ethiopia greatly favors the deal since it is looking for ways to overturn its trade deficit with new revenue sources to about $8.9 billion.
About GPB Global Resources B.V
Boris Ivanov founded the company in 2011, and it primarily focuses on Oil and Energy. The headquarters are situated in Amsterdam, Netherlands.