On July 17, 2014, Tolosa Shagi, Minister of Mines of the Federal Democratic Republic of Ethiopia and Alexander Ivanov, Chief Business Development Officer of GPB Global Resources, signed a Petroleum Production Sharing Agreement (PPSA).
During the signing ceremony Tolosa extended his appreciation to GPB Global Resources: "I have no doubt that the Company shall undertake all operations in a responsible manner and to levels acceptable by international petroleum exploration practices and standards."
The PPSA envisages petroleum exploration and production in the "Afar" license area. The area is located in the Afar region of Ethiopia in the north-eastern part of the country and covers about 42 thousand sq. km.
The PPSA secures a 7-year exploration and a 25-year production period. GPB Global Resources is the operator of the project. The exploration period will be financed by GPB Global Resources.