Oil is discovered in Ogaden

[Deeq A.]

 

Poly-GCL, the Chinese company engaged in oil and gas exploration and development project in the Ethio-Somali Regional State, Ogaden basin, has discovered oil and gas deposits.

Poly-GCL, which signed petroleum exploration and development agreement with the then Ministry of Mines in November 2013, has been prospecting for oil and gas reserve in a vast exploration area in the Ogaden basin. The company is also trying to develop the Calub and Hilala gas fields which was found in the Ogaden basin many years ago.

Koang Tutlam (MD), state minister of the Ministry of Mines, Petroleum and Natural Gas, told The Reporter that Poly-GCL has discovered additional gas reserves in the Calub gas field. “In the appraisal wells the company drilled around Calub it has discovered additional gas reserve. If you remember we were talking about 4.7 Trillion Cubic Feet (TCF) of gas reserve. Now the recoverable gas amount reached 6-8 TCF. The amount has increased significantly,” Dr. Koang said.

Dr. Koang said Poly-GCL has discovered some amount of oil in the new exploration wells it drilled around Hilala locality, 1,200 km southeast of Addis Ababa. “In the new exploration wells they drilled they have found some oil. But we do not have figures right now. The company is making assessment to determine the amount of oil. We will reveal the figures once the assessment is completed.”

The Calub and Hilala gas fields were discovered by an American company called Tenneco in 1972. Former Union of Soviet Socialist Republics (USSR) oil firm, Soviet Petroleum Exploration Expedition (SPEE), which was prospecting for oil in the Ogaden basin in 1980s, confirmed the gas reserves in Calub and Hilala localities estimated at four TCF.

A veteran petroleum geologist told The Reporter that Poly-GCL has found additional gas reserve in the same Calub structure but in a different horizon. “They have been drilling additional wells to appraise the existing gas reserve. So they must have found additional reserve in a different horizon.”  

The petroleum geologist said it was not for the first time when trace of oil was found in the Hilala locality. Tenneco discovered a non-commercial oil reserve in Hilala in 1973. Oil shows have also been noted in various exploration wells drilled in Hilala and Elkuran localities.

The petroleum expert said that the Chinese now came up with a latest oil exploration technology that enabled them to identify what the Americans did not see. “They have not found a new structure but they have discovered some oil in a different horizon. The Americans and Russians were working in the Ogaden in the 1960s, 70s and 80s. Now we are in 2018 and the Chinese have an advanced exploration technologies that enable them to trace the hydrocarbon resources.”

The petroleum expert pointed out that Poly-GCL has conducted 3D and 2D seismic surveys that helped them to undertake “successful” exploration work. However, he said it was too early to forecast the amount of oil reserve that the Chinese discovered. “It is only after successive well taste and exhaustive geo chemical laboratory analysis that they can determine the amount of the reserve. At this moment one cannot tell that the reserve is commercial or not.”

Poly-GCL has subcontracted another Chinese company, BGP Geo Services, which has been collecting seismic data in the license area covering 93,000 sq.km of arid land. 

In addition to the ongoing exploration work, Poly-GCL is trying to exploit the natural gas reserves in the Calub and Hilala gas fields. Eight gas production wells have been drilled and made ready for production in Calub. Poly GCL planned to extract the gas reserve in Calub and Hilala and export it via a gas pipeline that would be constructed from the gas fields to all the way to the port of Djibouti.

Dr. Koang told The Reporter that works on the gas development project is progressing. “Poly-GCL has signed agreement on the pipeline construction with the governments of Ethiopia and Djibouti. We (the Ethiopian government) are now negotiating with the Government of Djibouti on the pipeline construction. It is an intergovernmental negotiation,” he said.

According to Dr. Koang, Poly-GCL will build an LNG plant in Djibouti that would change the gas into liquid natural gas which will be exported to China with special LNG vessels. The total cost of the gas development project is estimated at four billion dollars. Dr. Koang said Poly GCL would start exporting gas by 2021.

In the meantime, Poly GCL is working on the gas development plan. “They are working on the pipeline construction plan,. They are working on it with full swing,” Dr. Koang said.  

If Poly-GCL’s gas field development project comes to fruition Ethiopia would soon become a hydrocarbon producing country.

[maakhiri1]

yeah , about time these poor people get out of the misery. 

GREAT news

[Old_Observer]

3 minutes ago, maakhiri1 said:

yeah , about time these poor people get out of the misery. 

GREAT news

maakhiri,

This oil has killed many regimes in Ethiopia. It was found and contracted to Standard oil of new Jersey (Exxon) 20 years before oil was ever found in Saudi Arabia.

ONLF got paid 4 million dollars to disrupt a singaporean company that had chinese workers some years ago

The British overthrew Ethiopian prince who contracted it to Exxon and brought Haileslassie who gave it to British Petroleum that was Persian British ..Company.

The time this happaned oil was being drilled only in Iran, the Russians were just starting.

 

Oil is dangerous business. I wish the Ethiopians wait until most of the kilil population is settled, farming as well as pastoral on the side, have some factories which is all in the works.

[maakhiri1]

I think those people waited for their chance in life for sometime and spent generations in poverty,it is time to count $$ and smile

[Old_Observer]

12 minutes ago, maakhiri1 said:

I think those people waited for their chance in life for sometime and spent generations in poverty,it is time to count $$ and smile

What I am afraid happening is most likely an Asian company will thake the contract, which means you have the French, British and American the worst group/combination stirring trouble. Even if you give it to American company the British Dutch or French company can finance a group of people to stirr trouble.

 

[Holac]

OO, how does oil revenue get divided? Is it controlled by the Somali Kilil or Addis?

If the Somali Kilil doesn’t control revenue from whatever hydrocarbon that is extracted, expect a renewed civil war.

[Old_Observer]

3 hours ago, Holac said:

OO, how does oil revenue get divided? Is it controlled by the Somali Kilil or Addis?

If the Somali Kilil doesn’t control revenue from whatever hydrocarbon that is extracted, expect a renewed civil war.

There is a formulae. Its similar and I believe was copied from that of Canada. It will benefit the kilil tremendeously even if you consider just the side infrastractural. My main concern is where ever there is oil business it comes with a lot other problems.

Here is what PM Meles said about oil.

 

[Mooge]

iley will be rich. lol

[Old_Observer]

14 minutes ago, Mooge said:

iley will be rich. lol

He has opened the kilil for business, and you are welcome to share with him. One catch you also have to share the risk that comes with oil business.

Its the same everywhere. As soon as the chinese started some activities and major projects in Puntland who do you think showed up. ISIS/ALqaeda and all its local or international versions and names.

 

[Ifiye]

19 hours ago, maakhiri1 said:

yeah , about time these poor people get out of the misery. 

GREAT news

The locals should expect more oppression not less.  We will also see millions of poor Ethiopian economic migrants move in and out number the nomadic locals in short period of time.   

[galbeedi]

OO says, " He has opened business for Killil" 

That is not true. Hundreds of businesses had left Jijiga for the last two years.  I was just talking to yesterday a guy who spent 150,000 for equipment to set up five star restaurant and after six months the landlord and the local enforcers forced him to abandon and take his equipment i the middle of the night.

No one is going there today.

The so called oil is long way to go, besides, we can not allow the Tigray to make money from occupied territory. We will get the oil when you leave the land. We should never allow to enrich the TPLF dictatorship. 

Also, we know that the locals will not see one penny of the money. Both the ONlf and Oromo should never allow that oil to to be stolen. Period.

[Saalax]

Well said galbeedi.

[Old_Observer]

7 hours ago, galbeedi said:

OO says, " He has opened business for Killil" 

That is not true. Hundreds of businesses had left Jijiga for the last two years.  I was just talking to yesterday a guy who spent 150,000 for equipment to set up five star restaurant and after six months the landlord and the local enforcers forced him to abandon and take his equipment i the middle of the night.

No one is going there today.

The so called oil is long way to go, besides, we can not allow the Tigray to make money from occupied territory. We will get the oil when you leave the land. We should never allow to enrich the TPLF dictatorship. 

Also, we know that the locals will not see one penny of the money. Both the ONlf and Oromo should never allow that oil to to be stolen. Period.

galbeedi,

Regarding hotel businessmen. Its better to get both sides. The kilil is open for business and a lot of investors have shown interest. You ned to realize that people use licences to import things tax free and then do not start bsiness the time they promised. Then the benefits they took should be taken away. Some people are given land to develop it, but keep it until price appreciates without doing what they promised they will do with the land. Then comlain when land is taken back.

Would you do any diffeent if you, galbeedi, was the government?

Regarding oil business, it will be wars, conflicts, terrorism etc. I have yet to see a country that has peace and oil unless is either 100% american or the country can extract the oil on its own technology. We have none. Nigeria is best example. Should have been best country to live in Africa by now.

To extract oil here are my conditions:

At the very least 50% of the engineering and logistics work should be done by locals. Except for heaviest of equipment riggging nothing else should be coming from outside.

This applies whether its your Oromo or locals Somali. If the role of government is just to be security guard for foreigners, that is not acceptable. Look how much life was lost in Somalia for oil that is still in the ground never extracted. You do not want that to happen to anyone.

[Wajaale]

13 hours ago, galbeedi said:

Both the ONlf and Oromo should never allow that oil to to be stolen. Period.

I understand the ONLF, but why do you mention Oromo to approve oil that belongs to the Somali? Are you Somali? 

[Old_Observer]

17 minutes ago, Ducale said:

Oromo are his allies (at least in Galbeedi's head) who are making their way to hargaysa. They will overthrow the government, liberate galbeedi from warden Ducaale's concentration camp and finaly unite north and south. 

Illey is driving galbeedi mad. Now galbeedi has reached the level of extreme hate and all his stance is driven by it. Pretty soon if galbeedi continues in this direction he will renounce being Somali and come out as Ethiopian Oromo.

ONLF of course would not even greet galbeedi. ONLF would have a hard time working with Oromo, a lot more conflict than Illey has with Oromo.