Section : ECONOMICS
Country : HORN OF AFRICA
According to a recent study carried out by Petroconsultants of Geneva, Switzerland on oil potential in East Africa, Somalia has two of the most potentially interesting hydrocarbon yielding sedimentary basins in the whole region: the first is at Mudugh in the centre of the country and the second is in the Gulf of Aden. In Ethiopia, Ogaden basin looks promising for natural gas resources or light oil. In total, the Petroconsultants study found ten sedimentary basins in the region, in Somalia, south east Ethiopia and north east Kenya. According to the consultancy group's estimates, a strike similar to that in Yemen in 1982 (3,700 barrels per day) would be feasible in the Gulf of Aden. I.O.N.- In spite of these theoretical forecasts, oil prospecting in the region has, until now, born little in the way of results, there has moreover, never yet been a substantial commercial strike. But Petroconsultants says the small number of drilling projects in the region should be taken into account (about 160 wells over 1,100,000 square kilometres). Recently, United States oil companies, among the eight holding permits in Somalia (Maxus, Hunt Oil, Phillips Petroleum, Agip, Conoco, Amoco, Chevron and Pecten), said they were prepared to resume work in the country.