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Analysis

Mali: Oil Discoveries Signal Prosperity Despite Terror Concerns
Mali Troops on Patrol After Recent Al Qaeda Attack (SERGE DANIEL/AFP/GETTY IMAGES)
November 17, 2011
| Security, Energy
| Africa
Summary
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Projects to explore and tap into Mali’s potential vast oil reserves have attracted significant international interest, according to Prime Minister Cissé Mariam Kaïdama Sidibé. The Taoudeni Basin, which stretches between Mauritania, Mali, and Algeria, shares geological similarities with other oil-rich basins in Africa and could help boost the economy of Mali. Key to the success of any long-term venture, however, will be the government’s ability to establish better control over the northern region of the country, which is still plagued by terrorist activity.
Last week Algerian state energy company Sonatrach announced it had discovered oil and natural gas in Mali on its permit that is operated by German-based E.ON Ruhrgas. Sonatrach vowed to begin drilling its first well in Mali by mid-2012. Swiss-based Petroplus Africa Ltd., Canadian-based Simba Energy Inc., and UK-based Heritage Oil Plc. are also engaged in exploration in Mali. In addition, two weeks ago Angola and Mali signed a five-year agreement for Petro Plus Angola Lmtd. to begin exploration in Mali.
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