Wednesday, May 18, 2011

Ethiopia Expects Seven Offers for Former Petronas Oil Blocks

Bloomberg,  May 18, 2011
Ethiopia’s government expects seven foreign and domestic companies to bid for oil and natural gas concessions in the restive Ogaden basin previously held by Petronas Nasional Bhd, a government official said.

A tender for the concessions closes this week and the results are expected to be announced by early June, Ketsela Tadesse, head of petroleum licensing and administration .

The Mines Ministry, said in an interview yesterday in Addis Ababa, the capital. One of the eight blocks on offer has proven gas deposits of 2.7 trillion cubic feet, according to Ketsela.

“We shortlisted the companies and they have taken bid documents,” Ketsela said. “After evaluation, the results will be disclosed. We hope to finish in two or three weeks.”

Petronas, based in Kuala Lumpur, sold the assets in October as part of what it said was a “rationalization exercise.” 

In May 2010, British geologist Jason Read, who was working for a subcontractor of the Malaysian company, was killed in an ambush in the region. 

The rebel Ogaden National Liberation Front, which has been fighting for self  determination in the area since 1984, denied responsibility for the attack.

In April 2007, the ONLF attacked an exploration site in the Ogaden operated by China’s Zhongyuan Petroleum Exploration Bureau, killing nine Chinese workers and 65 Ethiopians.

Talks with Petronas about its exit were “amicable” and the state-owned company’s decision to leave Ethiopia had nothing to do with security concerns, Ketsela said.

‘No Problems
“Companies are currently working in the area with no problems,” he said. “There is a good relationship between them and the local people.”

Communications Minister Bereket Simon said by phone from Addis Ababa today. “So I don’t think these accusations from terrorists hold water.”

Hong Kong-based SouthWest had announced on Oct. 6 it had taken over the concessions before the government approved the deal. The tender is still “open” for the company, Ketsela said. Read more..
 Source: By William Davison, borglobe

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