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Petronas Starts Drilling Oil Exploration Well
The Reporter (Addis Ababa)
March 10, 2007
By Kaleyesus Bekele
Addis Ababa, Ethiopia - Petronas, the Malaysian oil and Gas company, last month started drilling the second oil exploration well in the Gambella basin, in south-western Ethiopia.
In June 2003, Petronas and the Ethiopian Ministry of Mines and Energy (MME) signed a petroleum development and production sharing agreement that enables the company to prospect for oil in the Gambella basin. Since 2004, Petronas has been collecting seismic data in the exploration area covering 16,000 sq km of land near the Ethio-Sudanese border. Based on the seismic data, last year Petronas drilled the first exploration well (wild cat well) in a locality called Gigaw.
It took three months to drill the first exploration well, which is 3500m. deep. After finalizing the drilling last May, Petronas conducted an oil test in the first well. But the exploration well turned out to be dry (no oil shown). However, the company discovered sedimentary rocks (source rocks) that generated crude oil. It has been confirmed that the source rocks had generated oil a long time ago. Senior officials of MME told The Reporter that, three weeks ago, Petronas started drilling the second exploration well, some 60 km from the first well. The company spent 16 million dollars to drill the first well.
The second well will have a depth of 3500 m. and it will take three months to finalize the drilling. The Gambella basin is an extension of the oil productive Melut basin in Southern Sudan. Petronas is engaged in oil field development projects in the Sudan. The company is developing 30 percent of the oilfields. In the Sudan, Petronas extracts oil in Chad, Cameroon, Angola, Mozambique and Yemen. The company operates in 14 countries in Africa and in 21 in Asia. Established in 1974, Petronas has 110 subsidiary companies. Headquartered in Kuala Lumpur, it is one of the top ten leading international oil companies in the world.
Special Section: Energy and Mining Sector
In addition to Gambella, Petronas took three exploration blocks in the Ogaden basin, in eastern Ethiopia. In August 2005, Petronas acquired exploration areas in Genale, Kelafo, Wel-Wel, Warder and Fer-Fer localities in the Ogaden basin. The total area of the concession is 93,000 sq. km. The company has won the international tender put up by MME for the development of the Calub and Hilala gasfields in the Ogaden basin. Officials of MME and Petronas are finalizing negotiations on the gas development project. The two parties are expected to sign an agreement for the gasfield development project. The natural gas reserve in Calub and Hilala localities, 1200 km-south east of Addis Ababa, is estimated at 113 billion c.m. Petronas has proposed to build a gas processing plant and a gas pipeline all the way from the gasfields to the Port of Djibouti. The company plans to invest 1.9 billion dollars on the project. If the project is realized, Ethiopia, would be a hydrocarbon producing country for the first time.
The gasfields were discovered in 1973 by Tenneco an American petroleum company. Ten wells in Calub and four in Hilala were drilled. Eight of the gas wells in Calub are ready for production. Currently, Petronas is collecting seismic data in the Gunale locality.
“The company plans to invest 1.9 billion dollars on the project.”
Let it happen! That would be the biggest investment in Ethiopias history and a venture that can beat the Saudi tycon who is trying to monopolise the market.
encouraging development. i hope it will go as planned. God Bless!!
Well done, keep digging until the massive oil exploration will discovered.
Stay out of ogaden, somali region. By the way America support u now but as soon as the find oil in ogaden? they will turn against u like a short to make sure ogadenian accept american occupation. No war in ogaden now because there is nothing to fight for,,,however when the oil pops u will c how many conflict arise due to that.
Let’s pray for Alah! under his almighty all is possible in the presence of a visionary government like EPRDF and dedicated leader like PM Meles Zenawi and his colleagues, we hope Ethiopia and Ethiopians will step up infront!
All screaming in the westrners street by CUD and the useless diaspora will immediately halt and will be asphyxated.
I hope before any oil produced and marketed we will have a clean corruption free government where accountability and rule of law is a norm. We have a lot to learn from Nigeria’s oil scenario where the majority of the oil wealth is going to the pocket of corrupted politicians and giant oil companies leaving the ordinary Nigerian empty handed.Please read the recent publication of National Geography Magazine about The dilemma of Nigeria’s oil wealth. You will be surprised to see how greedy corrupt politicians can drive a nation down hill despite all great opportunities for growth.
“That would be the biggest investment in Ethiopias history and a venture that can beat the Saudi tycon who is trying to monopolise the market".
You will see that in the next election, petranos will campain in favour of EPDRF. If you are surprised by Al Amoudin, you will be stunned by Petranos. These guys know who can walk the real walk.
Anyway, I like oil. I hope you fancy it.
Forest Gump [Visitor],
You stole Hailu Shawel’s nick name! “life is a box of Kurt”
Anyways,…I like Oil
give me some oil
Somali Nationalist get lost loser.You hallucinating here for none existance issue. If I were you I would disapeared with the narrow minded your own Somali terrorist.
Mohammed Alli keep it up bro. EPRDF forever.Amen
“Anyway, I like oil."……python,
Not worry, your ‘dimet hod’ will not take that much to fill it up, however we are still going to offer you one ‘berimel’ of gas so that you can snif it, drink it, shower with it and at the end we will help you smoke your ‘gisila sigara using lalibela kibrit’ while chewing a ‘gelemiso’ chat.
“Anyways,…I like Oil"……Cheffee,
I know Goitom, what is there in the world a clown hates anyyways? we all know that the world is always full of wonders for clowns and oil is especailly their favourite thing for new tricks thus we will be generous to make an oil pool for ya, Goitom, so that you can perform your swiming and fire breathing tricks in there. how is that sound, Goitom?
Well, the action taken by Petronas to invest in our country is very commendable and unprecendented.
It will certainly give more due attention to traditionall neglected regions of Ethiopia – the Ogaden and the Gambella as well as provide employment opportunities, for. ex. currency, billions of dollars in wealth for Ethiopia and more credit for the Meles Zenawi-Addisu Legesse administration of Ethiopia.
Forget the Melese Administration it has nothing to do with discovering oil. It is the emergency of China and India as major industrial powers with an ever increasing demand for fuel. Thank God almighty and those Ethiopians of great faith who are serving him and praying for the prosperity of Ethiopia. God has promised to make a provision for Ethiopia and the prophecy that is written centuries ago are final at hand. Blessed is the nation whose God is the Lord.
This is clearly a great time to be an Ethiopian! I wouldn’t be surprised if other Africans try to pass for Ethiopians in order to bask in its revived glory and progress!
Eat your hearts out, desperate bozenays!
I like my people, Ethiopians of all background. My country is a blessed country, but not with political vision. From the head of the ruling party, to the opposition, to the homeless living in the street, all have minds corrupted with ethnic thinking. The first thing we see is ethnicity, then comes nationality. Regardless whether Meles is doing good or bad to the country, most Tigries will praise him, most other ethnic groups despise him. For me, I try to put what is best for my country first.
I admire Meles, he has done some visionary things, but he is short sited when it comes to comitment to the true form of democracy. I like what the opposition is doing trying to bring a true democracy to the country, but they seem to oppose every single thing that EPRDF is doing. Neither the government not the opposition have a clear understanding of what democracy is and how it applies to our country, they just push their vision of what democracy should be to the yewah people. The future for our country is not as bright as depicted by EPRDF, nor is it as bleak as painted by the opposition. God will protect Ethiopia for love of the poor yewah people.
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