Ethiopia signs oil exploration deal with Falcon

August 8, 2008 (ADDIS ABABA) — Ethiopia and Cyprus-based Falcon Petroleum Ltd have signed an oil exploration deal for nearly 26,000 square km (10,040 sq mile) in the Blue Nile basin, the Ministry of Mines and Energy said on Friday.

The exploration period will last four years and can be extended twice each year for two more years while the development and production period is set at 25 years with a possible extension for 10 years, the agreement said.

Falcon Petroleum will receive incentives including tax and duty exemptions for all equipment and material to be imported for the exploration, the agreement added.

The company is an independent oil and gas exploration and production operating company, registered by a group of United Arab Emirates and international partners.

The Ethiopian energy ministry said there are 65 exploration and mining companies operating in different parts of the country in search of oil and other mineral products.

(Reuters)