Eritrea: Defba Oil Share Company signs oil exploration agreements
06 Oct 2008
The Government of Eritrea has signed two agreements with Defba Oil Share Company on oil exploration and development. Accordingly, the company would undertake oil exploration activities in two blocks of the Eritrean northern territorial waters.
The Defba Oil Share Company has been set up through the partnership of the Eritrean government and Energy Alliance Company W.L.L. The agreements were signed in Asmara by Mr. Tesfai Gebreslasie, Minister of Energy and Mines, on the Eritrean side, and Mr. Shi Jicheng, General Manager of Defba Oil Share Company, on the side of the company.
Oil exploration off Eritrea began in earnest in the 1960s, but stopped largely due to disappointing results and insecurity. Eritrea's 30-year independence struggle against Ethiopia and a 1998-2000 border war with its larger neighbour has meant that much of its natural resources remain untapped.
Source: East African Forum