Petroleum Africa
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Thursday, December 5, 2013
The Ethiopian Ministry of Mines (MoM) signed a petroleum production sharing agreement (PPSA) with Chinese firm Poly GCL Petroleum Investment Ltd. for access to the gas reserves on the Calub and Hilala fields in the Ogaden Basin according to reports. The fields were most recently explored by Malaysia’s Petronas who established they were gas prone. Petronas exited the fields in 2010 after seeing a host of security difficulties from the Ogaden National Liberation Front, or ONLF.
The fields have seen one other operator since Petronas exited, PetroTrans.
PetroTrans, after it agreed to invest close to $4 billion to develop the gas fields, beat out six other bidders including South West Energy (SWE), the National Oil Company (NOC) of Ethiopia, and Cobramar of Seychelles. PetroTrans signed a PPSA agreement with the MoM in July 2011, but the deal was terminated by authorities a year later with the ministry saying the company did not undertake the work outlined in the PPSA.
The government wants more action on the fields to realize gas production.
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