Ethiopia commenced production for the first time in June this year. The production was at two fields in the eastern party of the country; at Kalub and Hilala fields. This exciting event has since then risen the hopes of the nations in generating foreign exchange and creating employment opportunities for the citizens.
According to the Ministry of Mines in Ethiopia, the area is proven to have 6-8 trillion cubic meters of crude oil and is currently managed by a Chinese company who is responsible for the extraction of both crude oil and natural gas in the Ogaden area, Somali regional state in eastern Ethiopia.
Ethiopia plans to earn annual revenue of $8 billion from natural gas exports which largely depends on the pipeline to be installed to aid trade across board. The beginning of exports of the Ethiopian crude oil is a positive development for the country in terms of trade, economic growth and revenue generation which would help in alleviating the existing foreign currency deficit.
It will also help speed up local community development where these crude oil deposits are found not forgetting how it would facilitate interregional trade and relationships.