The Chinese POLY-GCL Petroleum Investment has officially started extracting crude oil from the Ogaden Basin in Somali Regional State,
Five months ago the company had announced that the country has a potential crude oil and natural gas reserve. The gas reserve is found in three areas of the Ogaden including Ilala and Kulab areas of Shinile zone.
A day ahead, on June 28, Prime Minister Abiy Ahmed (PhD) and Barton Yu, Chairman of POLY-GCL had announced the commencement of the extraction.
The country is expected to earn over 1.2 billion dollars annual income from natural gas export in the first few years of production. The earning is expected to grow to eight billion dollars. as part of the current test 450 barres of crude oile will be produced a day.
The then Ministry of Mines (MoM) and Ploy GCL signed a petroleum production sharing agreement (PPSA) on November 16, 2013. The reserve of natural gas in the areas was confirmed in 1972 by Tenneco, a US company