- Ethiopia is set to debut in the global oil market in September, marking its first crude oil exports.
- This development positions Ethiopia among Africa's oil-exporting nations, such as Nigeria and Angola.
- Trial production of crude oil has started in the Ogaden Basin, highlighting Ethiopia's resources.
A new chapter is unfolding in Africa’s energy landscape as the continent welcomes Ethiopia into its community of oil-exporting nations as it makes its debut in the global oil market this September.
Africa’s crude oil exporting network grows with new member nation
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This move positions Ethiopia as the newest member of Africa’s oil-exporting bloc, alongside established producers such as Nigeria, Angola, Algeria, and Libya, marking a historic milestone in the country’s economic development and energy aspirations.
The announcement was made by Ethiopian Prime Minister Abiy Ahmed, who confirmed that petroleum exports will begin in September as per Ethiopian media platform, Ethio Negari
The planned shipment will be the first crude oil export in Ethiopia’s history—a significant turning point for a nation that has long depended on imports to meet its domestic energy needs.
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Ethiopia’s oil prospects
Last year, Prime Minister Abiy Ahmed met with officials from Poly-GCL Petroleum Investment Limited—a joint venture between China’s state-owned POLY Group Corporation and Hong Kong-based Golden Concord Group—to formally launch crude oil production testing in the Ogaden region.
Following a meeting with officials from Poly-GCL Petroleum Investment Limited, PM Abiy Ahmed announced a trial production of 450 barrels of crude oil
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The company reported promising signs of commercial-scale crude oil reserves in the area.
The Ogaden Basin, located in Ethiopia’s Somali Regional State, has long been believed to hold significant hydrocarbon potential.
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However, until now, Ethiopia has remained heavily reliant on petroleum imports, spending over $4 billion annually to meet domestic fuel demand.
According to state-affiliated Fana Broadcasting, Prime Minister Abiy announced that a trial production of 450 barrels of crude oil would begin, marking a historic first for the country.
He added that full-scale crude oil production in the future could help reduce unemployment and ease Ethiopia’s ongoing foreign currency shortage.
Abiy also stated that Ethiopia expects to generate up to $8 billion annually from natural gas exports once operations reach full capacity.
Government officials say the initial shipments of crude will be modest but carry symbolic weight, representing the first step in a broader strategy to develop and monetize Ethiopia’s untapped energy resources.
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Ethiopia’s entry into the oil export market comes amid shifting global energy dynamics, as African producers increasingly seek to strengthen intra-continental trade, attract foreign investment, and assert greater influence in OPEC-related discussions.
Analysts believe Ethiopia’s participation could boost regional cooperation and infrastructure development, especially in East Africa, where momentum is building around pipeline and refinery projects.
