Petronas to develop two gas fields in Ethiopia

Malaysia's Petronas has signed an agreement with Ethiopia to develop Calub and Hilala gas fields in the Ogaden basin, according to Ethiopian reports.

Uchenna Izundu
International Editor

LONDON, Aug. 13 -- Malaysia's Petronas has signed an agreement with Ethiopia to develop Calub and Hilala gas fields in the Ogaden basin, according to Ethiopian reports. The fields, which hold 4 tcf of gas, are 1,200 km southeast of Addis Ababa.

Petronas proposes constructing a gas processing plant and a gas pipeline that would link the gas fields to a seaport. It also plans to shoot seismic surveys and to drill exploration wells in the fields and on Blocks 11 and 15, also in the Ogaden basin.

Last year the Ethiopian energy ministry awarded the fields to Petronas under an international tender. Calub and Hilala encompass 285 sq km.

However, the Ogaden Nation Liberation Front, the rebel group fighting for self determination in their area, has warned oil companies to stay away from the region.

"Pursuing oil and natural gas exploration activities in Ogaden at this stage can only be characterized as gross corporate irresponsibility," ONLF said. It has warned energy companies that it is well armed. In April, it killed 74 people during an attack on an oil field managed by Chinese companies.

Contact Uchenna Izundu at uchennai@pennwell.com.

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