US' Centric Gas and Oil company announced that it had signed an oil and gas exploration agreement with the Eritrean government. On the 4th of May, the deputy president of CMS Oil and Gas, Robert C. Olsen, and the Eritrean Energy Minister, Tesfay Gebreselassie, signed the agreement in Asmara, with various PFDJ officials, and US ambassador to Eritrea, William Clarke being present. The report stated the Michigan based company had the exclusive drilling rights for oil exploration in the Dismin region, which is 13,860 sq km of land and water in northeastern part of Eritrea.
Alec Robinson, the CEO of Centric Energy since 2006, pointed out that Eritrea's has a history of good oil and gas results from past explorations:
“Although exploration started back in 1921, only eleven wells have ever been drilled in Eritrean waters, with a further 12 shallow holes back in the 1940's on offshore islands. Eight of the offshore wells had good oil or gas shows, and the widespread occurrence of seeps is further evidence of a working petroleum system.” OilEdge, By Jane Whaley
Mr. Robinson goes on to add:
“In fact one well, C1, drilled in 1969 by Mobil, suffered a massive gas blow-out, and continued flowing for 55 days before finally stopping naturally. From the limited and varying quality data available, a number of prospects and leads have been identified in both the pre- and sub-salt formations of the Eritrean Red Sea,” OilEdge, By Jane Whaley
The following photo below is of existing exploration wells and drilling results in the Eritrean Red Sea region as provided by the Eritrean Minsitry of Energy and Mines. Click on both images to view larger quality.
The photo below is of Petroleum Exploration Blocks and wells within Eritrean territory as provided by the the Eritrean Minsitry of Energy and Mines. Both images presented in this article were designed by Eritrean Embassy of Japan.