Oil Exploration ProjectCreation of Sustainable Energy Source for Ethiopia

Oil Exploration Prospects

Brief History of Oil exploration in Ethiopia

Ethiopia is a land locked country with a

population of over 90 Million (2010). The political

and peace in the country has been stable for the

past 20 years and proven economical

development has been observed in the nation.

The world Bank statics shows that

NASA recent finding on oil exploration site in

world marked Ethiopia as one of the possible

nations to have oil. The oil spiel in the region of

Ogaden and south Omo is similar to that of the

Arab Peninsula regions. In addition, The recent

discovery in near by Kenya has increased the

likely hood of finding oil in the region.

Population 91,728,849 2012

GDP $43.13 billion 2012

GDP growth 8.4% 2012

Inflation 23.4% 2012

Oil Exploration Project| | International Leadership Institute

Statement of the Problem Growing local as well as international for energy source. In addition, sky rocketing fuel price in the global market and increasing global energy demand

Scope

• Exploration of petroleum fuel within the country. And building a forestation project to limit the emission

Vision and Mission

VisionTo Become the first petroleum refinery in Ethiopia with a reliable capacity and technological backingMissionWe aspire to build reliable energy source to the countries energy mix and increasing the foreign currency

Formation of teams

Hailu Director

Kaleab (Planning) Gezahegn (Cost Control)

Matiwos (Procurement &

Logistics)Kidist (External

Relations)

Funding Source

Funding Organization Expected Amount

World Bank (Loan) 30%

Government of Ethiopia 10%

Oil Companies 40%

Other Funding Organization 20%

Personal Finance 10%

Total 110%

Project Overview

Project Conception

Project Planning and Development

Implementation or Execution Delivery

Contribution to the National Economy

• Poverty Reduction• Reduces Deforestation as the result of

alternative source of energy• Creation of Employment opportunity • Contributing positively of life for the population• Avoiding illegal trafficking of citizens due to

better income

Expected Return from Investment

FY-2013 FY-2014 FY-2015 FY-2016 FY-2017 FY-2018 FY-2019 FY-2020 FY-2021 -

0.50

1.00

1.50

2.00

2.50

3.00

Chart Title

Expense Return Column1

• Cost detail • Material & Machinery • Human Resource • Logistic• Warehousing & insurance

Project Charter

• The project will take about 5 years• General benefits of the project• The total resource of the project is 7.5 Billion • Stakeholders role & performance measure• Environmental and business impact

Project Output

• Crude oil 10,000 barrels per day•

Project Team Structure- (Board of Directors)

Micro Macro

Employment opportunity The need for self sufficiency material energy and in basic material needs

Business opportunity's for suppliers Increase in GDP of the country

Knowledge transfer Support the budgetary deficit

Beneficiaries form the project outcome

Wealth of the nations will increase

Advancement in way of life (urbanization)

Support GTP

Advancement of infrastructure  

   

Internal External

Employment opportunity Foreign direct investment

Hard currency Image of the country

economical Alliance power

Political Voicing power /negotiating power

Poverty reduction  

Energy substitute  

Financing capacity  

Advancement of technology  

Strength Weakness Opportunity Threats

Geographically the surrounding area is likely to find

Internal financing capacity State where the world demands energy

Political risks

Located in center of oil producing country

Internal implementing capacity Substitute for other fuel sources Regional cultural issues

Matured political leaders Lack of internal experts Afforestation Theorist organization

Peace and stability within the country Lack of well developed infrastructure

Probability for technology inflow Instability in world economy

Strong protective legal frame work   Increase Global consumption High investment on R&D for substitute of energy sources

Sedimentary rocks findings are similar      

Critical Analysis of the project

SWOT Analysis

Macro and Micro Analysis Internal and External Analysis

RISK RESULTING EFFECT

GROSS RISK ESTIMATE

KEY MITIGATION Strategy

NET RISK ESTIMATE

Impact

Likelihood

Risk Level

Impact

Likelihood

Risk Level

Political Risk possiblity of teririst attack 5 5 Recruitment of Environmental and Security advisor to look after such risks.

5 3

Environmental Risk pollution of the environment, displacement of the population human or wild life population due to the project inaugural

4 3 recuitment of Enviromental and Secuirty advisor to look after such risks. Mitigation strategy for reducing the polution though aforastation

4 2

Finacial Risk Not able to secure expected fund as per the plan

Ethnic conflict war in the region of exploration due to ethnic share taking from the project

Feasibility Study & Risk Analysis

We shall employee an independent consultant to conduct the following feasibility studies

• Financial /Economic feasibility• Operational Feasibility• Technological Feasibility• Legal Oversight• Technical Feasibility • Schedule feasibility

Project Activity Plan

Organization Structure

Board of Directors

Project VP

Operations manager

Contract manager

Environmental and Security

Advisor

Project planning Manager

General Service coordinator

Drilling contractor

Finance and HR

Logistics coordinator

Drilling Engineer

Drilling Engineers Cost Control Operation

Geologist

Area Manager

Project Gantt Chart

Activities 2013 2014 2015 2016 2017 2018Developing Administrative Manual-9

Planning for Recruitment-7

Procurement Planning-8

Leasing and contracting-11

Stakeholders Analysis -2

Operational plan-10

Engineering Design-5

Site Selection-4

Risk Analysis-5

Project appraisal/approval-6Team appraisal External appraisal

Mile stone of performance-12

Activity 2013 2014 2015 2016 2017 2018Handover (Delivery)-17

Presenting proposal to financer-3

Bid announcement -13• Procurement of oil exploration companies • Purchase of high value machineries and materials• Procurement of consultant and Engineers

Planning project closure activities-16

Mobilization of resource -14

Monitoring and Evaluation of Activities-15

Preparation of project proposal-1

Project Gantt Chart-Continued…………

Details of the Project Plan

Procurement Plan Man power Plan

Reference