China Poly Xiexin Natural Gas Group held the first barrel of crude oil production ceremony on the 28th in Ethiopia, marking a new stage in the development of the country's oil and gas industry. The project is located in the Ogaden region of Ethiopia's Somalia region, which is rich in resources and shallow in development.
According to the exploration results, the geological resources of natural gas in this area are expected to reach 5 trillion cubic meters, the crude oil is more than 400 million tons, and the exploration and development period can be up to 45 years.
Yu Baodong, chairman of Poly Xiexin Natural Gas Group, said at the ceremony that the project was Ethiopia's first to produce and sell crude oil, marking the start of the country's oil and gas industry moving towards resource utilization and market development.
Melese Alemu, Ethiopia's minister of minerals and oil and gas, said Chinese companies would help to develop Ethiopia's oil and gas resources, which would help realize Ethiopia's economic development strategy.
It is understood that in addition to meeting the needs of Ethiopia's home market, some of the oil and gas products produced in the Ogaden region will also be transported via pipelines to neighbouring Djibouti.
In November 2013, GG signed an agreement with Ethiopia and launched the Ethiopia-Djibouti Oil and Gas Project. The projects include exploration and development of Ethiopian oil and gas resources, laying of natural gas pipelines from Ethiopia to Djibouti, and construction of liquefied natural gas plants and terminals in Djibouti.