Council of Ministers Regulations No.367/ 2015
Council of Ministers Regulation to Establish the Ethiopian Mineral, Petroleum and Bio-fuel Corporation
This Regulation is issued by the Council of Ministers pursuant to Article 5 of the Definition of Powers and Duties of the Executive Organs of the Federal Democratic Republic of Ethiopia Proclamation No. 916 / 2015 and Article 47(1) of the Public Enterprises Proclamation No. 25/ 1992.
1. Short Title
This Regulation may be cited as the “Ethiopian Mineral, Petroleum and Bio-fuel Corporation” Establishment Council of Ministers Regulations No. 367/2015”.
1/ “petroleum” means crude oil and natural gas and includes hydrocarbons produced from oil shale and tar sands; it shall also encompass similar products produced from shale gas, coal and bio-fuel operations;
2/ “petroleum operations” means the operations involving and related to the crude oil and natural gas exploration, development, extraction, production, field separation, treatment, storage, transportation up to the point of exportation or entry into a system for domestic consumption, and marketing of petroleum, including processing of natural gas and refining of crude oil;
3/ “mineral “means any mineral substance of economic value, whether in solid liquid or gaseous form, occurring naturally on or within the earth or in or under water and which was formed by or subjected to an ecological process, and includes any mineral occurring in residue stockpiles or in residue deposits, but excludes:
a) water, other than geothermal water that may be used for bathing, recreational and therapeutic purpose or water used for the extraction of any mineral such as brine;
b) natural gas and petroleum as defined in the relevant petroleum law;
c) top soil and oil shale;
4/ “mining operations” means any activity associated with or connected to reconnaissance, exploration, retention, or mining and includes engaging in transaction in accordance with the Transaction of Precious Minerals Proclamation No. 651/ 2009;
5/ “bio-fuel operations” means activities related to the production of fuels from various feed stocks including molasses, plants and animal fats.
1/ The Ethiopian Mineral, Petroleum and Bio-fuel Corporation (here in after referred as the “Corporation”) is hereby established as a Federal Government Public Enterprise.
2/ The Corporation shall be governed by Public Enterprises Proclamation No. 25/1992.
4. Supervising Authority
The Ministry of Public Enterprise shall be the supervising Authority of the Corporation.
5. Head Office
The Corporation shall have its Head Office in Addis Ababa and may have branch offices elsewhere in the country as may be necessary.
6. Objective of the Corporation
The objectives for which the Corporation is established are:
1/ to ensure that the country benefits from its natural resources by developing and directly engaging itself in the mining, petroleum and bio-fuel sectors;
2/ to ensure the benefit of the country by building the local capacity of the sector and assisting others engaged in the sector;
3/ to fill the gap in the areas of investment which have strategic importance but are not addressed by the private sector;
4/ to contribute to the national economy upon being competent public enterprise;
5/ to engage in the investment, development and production of the mineral, petroleum and bio-fuel operations on its own or in association with others as appropriate;
6/ to invest in petroleum, mining and bio-fuel operations carried out by other investors;
7/ to sell or buy shares in accordance with the policy directions given by the Ministry of Public Enterprise;
8/ to sell and pledge bonds, to negotiate and sign loan agreements with local and interactional financial sources in accordance with the directives issued by the Ministry of Finance and Economic Cooperation and in line with the policy direction given by Ministry of Public Enterprises;
9/ to engage in the provision of services like consultancy, drilling, laboratory, data acquisition, processing and interpretation, feasibility study and training in the field of mining, petroleum and bio-fuel operations;
10/ to conduct study and implement when approved mechanisms that can equip the Corporation with the financing, technology and modern administrative inputs (including attracting or engaging in investments) which can help it to be competitive and profitable within the country or abroad;
11/ to engage in any other related activities necessary to attain its objectives in accordance with the direction of the Ministry of Public Enterprise.
The authorized capital of the Corporation is Birr 15,267,000,000 (Fifteen Billion Two Hundred Sixty Seven Million Birr) out of which Birr 4,017,000,000 (Four Billion Seventeen Million Birr) is paid up in cash and in kind.
The Corporation shall not be liable beyond its assets.
9. Duration of the Corporation
The Corporation is established for unlimited period.
10. Repealed Regulations
The Ethiopian Petroleum and Natural Gas Development Enterprise Establishment Council of Ministers Regulation No. 264/2012 is hereby repealed.
11. Transfer of Rights and Liabilities
The rights and liabilities of the following public enterprises are hereby transferred to the Corporation:
1/ the Ethiopian Petroleum and Natural Gas Development Enterprise established under the Council of Ministers Regulations No. 264/2012;
2/ the Ethiopian Mineral Development Share Company.
12. Effective date
This Regulation shall enter into force on this 18th day of December, 2015.
Done at Addis Ababa this 18th day of December, 2015.
Prime Minister of the Federal Democratic Republic of Ethiopia