SouthWest Energy secured three blocks that cover 29,000 square kilometres in the Ogaden Basin of Eastern Ethiopia, after it signed a product sharing agreement with the Ministry of Mines and Energy (MoME), in 2005. It signed the agreement with Tullow, a UK based oil exploration and production company.
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 (over 40) 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 has operations in 23 countries in Europe, Africa, South Asia and South America, with recent discoveries in Uganda and Ghana.
Tewodros declined to comment when approached by Fortune.
However, Tullow was not part of the UK business delegation, according to Demissie Assefa, EAA resident representative in Ethiopia and chairman of the British Business Group.
The delegates had talks with Prime Minister Meles Zenawi; his economic advisor Newaye-Chirstos Gebreab; Ken Ohashi, country director of the World Bank; Norman Ling, UK ambassador to Ethiopia; Tadesse Haile, state minister for Trade and Industry; and Abi Woldemeskel, director general of the Ethiopian Investment Agency (EIA), during their four day stay.
"Most of them have expressed to the Prime Minister their interest to invest in Ethiopia," Demissie told Fortune.
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.
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