News listings

energy-pedia exploration

Ethiopia flagEthiopia

Middle East / Africa >>> Ethiopia

Ethiopia: SouthWest Energy signs with Tullow Oil for Ogaden oil exploration

03 Mar 2010

SouthWest Energy (Ethiopia), a company largely owned by Tewodros Ashenafi, is reported to have signed a deal with Tullow Oil to farm into three blocks - Blocks 9, 9A & 13 -  covering 29,000 sq kms in the  Ogaden Basin of Eastern Ethiopia.  Following a comprehensive two year study, SouthWest Energy signed a production sharing agreement with the Ministry of Mines and Energy (MoME) in 2007.

Tewodros, also chairman and chief executive officer of SouthWest Energy, announced his latest deal with the UK company at a business lunch held at the Intercontinental Hotel, in honour of visiting trade and investment mission delegates from the British based Eastern Africa Association (EAA) on Thursday, February 24 2010. He came back from a trip to London on Thursday morning, where he had signed the deal with Tullow, Tewodros, one of the two speakers at the luncheon, with Zemedeneh Negatu, managing partner of Ernst & Young, told delegates.

Tullow’s decision to enter the Ethiopian market is a major confidence booster for the country and its energy sector, experts in the industry say. Tullow will now be the second company operating in the Ogaden, following the Malaysian oil company, Petronas.


SouthWest Energy is the first and only local Ethiopian company to successfully obtain an energy concession in Ethiopia. SouthWest Energy's initial focus is on the Ogaden Basin, the largest proven hydrocarbon basin in Ethiopia, with 3Tcf proved reserves. SouthWest Energy has secured Blocks 9, 9A and 13 in Ethiopia's Ogaden Basin. These blocks cover 29,000 sq kms in an ‘oil prone’ part of Ogaden Basin. The initial PSA agreement was signed in December 2005.

These blocks have a high prospectivity for oil rather than gas due to a shallower burial depth which makes it possible that potential Karoo age source rocks are still in the oil window. Recent reprocessing and reinterpretation of 2D seismic covering 15% of Blocks 9 and 13 yielded at least 16 prospects and leads, including two prospects with over 500 million BOE recoverable unrisked.

As part of its continuing development strategy SouthWest has agreed in principle to a joint study of one of the more prospective Rift Valley plays with the Ministry of Mines and Energy. This 60,000 sq km block is know as the Jimma block and is located in south central Ethiopia. The study agreement will give SouthWest right of first refusal over this acreage.

The original Petronas led multi year study of the Ogaden basin resulted in Petronas acquiring 8 blocks. Petronas has signed a deal committing USD3 billion to gas development activities in the Ogaden Basin.

Potentially attractive economics based on the terms of the Production Sharing Agreement (PSA) SouthWest Energy has entered into with the Government of Ethiopia and potentially low drilling costs (USD10 - 12 million/well) relative to prospectivity (large structures).

Photo - see caption

For further information regarding the SWE blocks, visit:

Source: energy-pedia

Bookmark and Share

A global information service for upstream oil and gas opportunities - divestitures, farmins and farmouts and licensing rounds.

Subscriber Only Deals

Current deals: 1684
Completed deals: 5145

Company Profiles

Current Company Profiles: 2631

Corporate Activity

Current Corporate Activity articles: 3236

Companies Looking

Current number of articles: 425

Company Sales

Current Company Sales articles:1344


Current Geostudies articles: 626

How to subscribe

energy-pedia Jobs

RSS Feed Widget
See all jobs...

energy-pedia Databank

The energy-pedia databank contains links to information on the world financial and energy markets, including share prices, oil and gas prices and the global stock exchanges. Read more...

energy-pedia Glossary

A list of commonly used terms in the oil and gas industry. Read more...


Subscribe to the FREE
energy-pedia Daily Newsletter

Government of South Australia
Lynx Information Systems
SLR Consulting logo
Rose & Assocs 149
EP Consult Energies
RSK Logo 149
Union Jack Oil 149
count geophysics
KL Publishing
About energy-pedia

energy-pedia news is a FREE news service written and edited by E and P professionals for E and P professionals.

We don't just report the news, we give you the technical background as well, with additional information derived from our unique energy-pedia opportunities service.
Contact us

energy365 Ltd

238 High Street
London Colney
St Albans

Tel: +44(0)1727 822675