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By SPECIAL CORRESPONDENT
Posted Saturday, April 11 2015 at 16:43
IN SUMMARY
Ethiopia plans to commence commercial production of natural gas in the Ogaden basin, and export it through neighbouring Djibouti by 2017.
The Calub and Hilala fields located in the Ogaden basin in southeast Ethiopia have deposits of 4.7 trillion cubic feet (TCF) of natural gas and 13.6 million barrels of associated liquids discovered in the 1970s but not yet exploited.
In the past four years, several companies have acquired licences to explore more than 40 blocks throughout Ethiopia.
Ethiopias Prime Minister Hailemariam Desalegn said studies show the existence of natural gas reserves in several places, and promised that the hydrocarbons deposits will gradually be developed.
A Chinese firm is carrying out activities on Calub and Hilala reserves. In the next two years, we plan to start exporting and using natural gas from these areas, he said.
GCL-Poly Petroleum Investments of China on November 16, 2013 signed production sharing agreements with Ethiopias Ministry of Mines to develop the two fields.
GCL-Poly Petroleum Investments will fund the pipeline that will transport gas to Djibouti at a total cost of more than $4 billion, of which $3 billion will be invested in the Djibouti section, said Djiboutis Energy Ministry Communications Adviser Mohamed Nour.
In February, Djiboutis President Ismail Omar Guelleh and Mr Desalegn signed an agreement to construct a cross-border pipeline from Ogaden basin to the Red Sea port. The leaders also signed a joint operating agreement for the pipeline with POLY-GCL Petroleum.
POLY-GCL will co-operate in building a natural gas pipeline from the Ogaden basin in Ethiopia to Djibouti, where natural gas will be processed in a marine terminal and transported all over the world, states the agreement.
The contract area of POLY-GCL in Ogaden basin includes two development blocks and eight exploration blocks covering 117,151 square kilometres. The project involves oil and gas exploration, development and construction of a pipeline with natural gas liquefaction plant in Djibouti.
Phase one is expected to reach three million tonnes per annum, and byproduct condensate oil production of 0.3 million tonnes per year.
Posted Saturday, April 11 2015 at 16:43
IN SUMMARY
- Ethiopias Prime Minister Hailemariam Desalegn said studies show the existence of natural gas reserves in several places, and promised that the hydrocarbons deposits will gradually be developed.
Ethiopia plans to commence commercial production of natural gas in the Ogaden basin, and export it through neighbouring Djibouti by 2017.
The Calub and Hilala fields located in the Ogaden basin in southeast Ethiopia have deposits of 4.7 trillion cubic feet (TCF) of natural gas and 13.6 million barrels of associated liquids discovered in the 1970s but not yet exploited.
In the past four years, several companies have acquired licences to explore more than 40 blocks throughout Ethiopia.
Ethiopias Prime Minister Hailemariam Desalegn said studies show the existence of natural gas reserves in several places, and promised that the hydrocarbons deposits will gradually be developed.
A Chinese firm is carrying out activities on Calub and Hilala reserves. In the next two years, we plan to start exporting and using natural gas from these areas, he said.
GCL-Poly Petroleum Investments of China on November 16, 2013 signed production sharing agreements with Ethiopias Ministry of Mines to develop the two fields.
GCL-Poly Petroleum Investments will fund the pipeline that will transport gas to Djibouti at a total cost of more than $4 billion, of which $3 billion will be invested in the Djibouti section, said Djiboutis Energy Ministry Communications Adviser Mohamed Nour.
In February, Djiboutis President Ismail Omar Guelleh and Mr Desalegn signed an agreement to construct a cross-border pipeline from Ogaden basin to the Red Sea port. The leaders also signed a joint operating agreement for the pipeline with POLY-GCL Petroleum.
POLY-GCL will co-operate in building a natural gas pipeline from the Ogaden basin in Ethiopia to Djibouti, where natural gas will be processed in a marine terminal and transported all over the world, states the agreement.
The contract area of POLY-GCL in Ogaden basin includes two development blocks and eight exploration blocks covering 117,151 square kilometres. The project involves oil and gas exploration, development and construction of a pipeline with natural gas liquefaction plant in Djibouti.
Phase one is expected to reach three million tonnes per annum, and byproduct condensate oil production of 0.3 million tonnes per year.
