Malaysia signs gas development agreement with Ethiopia

August 4, 2007 (ADDIS ABABA) — The Malaysian oil company, Petronas, and Ethiopia’s Ministry of Mines and Energy (MME) have signed a gas development agreement that would enable the company to develop the natural gas reserve in Calub and Hilala areas in east Ethiopia’s Somali State, The Reporter said Saturday.

The English weekly newspaper reported that the agreement was signed by Petronas President Mohamed Hassan Marican and Alemayehu Tegenu, minister of MME, in Malaysia’s capital Kuala Lumpur.

Petronas has won the international tender put up by the MME to award the Calub and Hilala gas fields in the Ogaden basin, Somali State a year ago.

In July 2006, the MME sent an awarding letter to Petronas and since then the two parties have been negotiating on the details of the gas field development projects in Addis Ababa and Kua Lalampur. Petronas has also secured two exploration blocks (B11 & 15) in the Ogaden basin. The blocks are found in the vicinity of the Calub and Hilala gas fields.

Petronas plans to build a gas processing plant and construct a gas pipeline that stretches from the gas fields to a seaport. In addition to extracting the gas reserve, the company plans to conduct seismic surveys and to drill exploration wells in the gas fields as well as in Block 11 and 15, according to the English weekly newspaper.

The Calub and Hilala natural gas fields are located 1,200 km southeast of Addis Ababa. The total area of the gas fields is 285 square km.

Petronas, one of the top ten leading international oil companies in the world, was established in 1974. Wholly owned by the Malaysian government, the company has 110 subsidiary companies. Petronas operates in 14 African and 21 Asian countries. The company is active in Sudan, Chad, Cameroon, Angola and Yemen.

(Xinhua)