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Ethiopia: Chinese Oil Company Refuses to Resume Operation in Ogaden
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The Reporter (Addis Ababa)
8 December 2007
Posted to the web 8 December 2007
Kaleyesus Bekele
The Chinese Oil Company, Zhoungyan Petroleum Exploration Bureau (ZPEB), has refused to resume work on oil exploration projects in the Ogaden basin.
Contracted by the Malaysian oil and gas company, Petronas and South-West Energy, a company licensed in Hong Kong, ZPEB has been conducting seismic survey in the Ogaden region of the Somali Regional State. After the Ogaden National Liberation Front's (ONLF) attack on the Abole exploration site in the Degehabur zone last April, ZPEB suspended operation. Seventy-four civilians, including nine Chinese workers, were killed in the attack.
The Ethiopian Ministry of Mines and Energy (MME) demanded the petroleum companies to start work on the exploration projects. However, ZPEB refused to return its oil workers to the Ogaden region. Senior officials of the MME told The Reporter that the parent company of ZPEB, Sino Tech, did not allow it to resume the operation. Petronas is now in the process to hire an Iranian Company called Oil Exploration Operation Company, (OEOC). Representatives of Petronas and OEOC last week visited the Ogaden region. The representatives conferred with officials of the MME on the oil exploration projects in the Ogaden.
"OEOC's response to Petrona's request was positive. However, they did not yet sign a contractual agreement," officials of MME told The Reporter. OEOC is engaged in oil exploration projects in Iran and Uzbekistan. Petronas is also engaged in a similar project in Uzbekistan.
Meanwhile, the Swedish petroleum company, Lundin, recently began to conduct gravity survey in its exploration area in the Ogaden basin. Lundin has four exploration blocks in the Ogaden. Two weeks ago the company launched its airborne survey in the exploration blocks found near Dire Dawa town.
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Pexco, another Malaysian company, is also prepared to begin gravity survey next month. Pexco has two exploration blocks in the Ogaden. "All the companies which have exploration blocks want to commence work. But they need sometime to find a subcontractor," officials of MME said.
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