Ethiopia, Somalia, Kenya Will be the Next Great Oil Province

When Conoco's Mogadishu office became the de facto US embassy before the Marines landed in Somalia; it was not a war on terror, but supposedly a "humanitarian mission". Protecting oil concessions to Conoco and other US corporations was a key factor behind this invasion, after major oil finds in Somalia.

Tom Windle, who explored some of Africa's west coast sites for Amoco, believes Africa's potential has barely been recognized. The regional geologist says that East Africa is the most significant potential oilfield worldwide. Tom says that although there are prospects for further oilfields in West Africa, it is in the East and the Horn of Africa where the potential is the greatest : "... in my opinion, the East African margin (from Sudan, through Ethiopia and Somalia down to Kenya) will be the next great oil province."

Big companies are now attempting to "book reserves" in the region under the most favourable terms they can and they have found willing takers in East African governments. A number of companies are now involved in exploring the possibility of oil finds in East Africa including Exxon Mobil, Woodside Petroleum and Tullow Oil, which recorded a 660% increase in its profits for the first half of 2005. Tullow Oil chief executive Aidan Heavey put his firm's exceptional performance down both to the increase in oil prices and its strategy of investing heavily in potential new oilfields in Africa and Asia.

Africa currently produces around 11 per cent of the world's oil and over five per cent of natural gas. It is home to nearly 10 per cent of proven world oil reserves totalling some 112 billion barrels.

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