Ethiopia Terminates Gas, Oil Exploration Contract with China’s Poly-GCL

ADDIS ABABA – The Ministry of Mines has terminated a gas and oil exploration and development contract with China’s POLY-GCL Petroleum Group Holding Ltd.

In a press briefing Wednesday, Mining Minister Takele Uma said the agreement with Poly-GCL was cancelled because of its “financial and technical inability” to develop the gas reserve in Ogaden Basin.



Poly-GCL was given several notices to fulfil its agreement but failed to complying, forcing authorities to take the latest decision.

“In accordance with the successive notices the Ministry has issued in the past and in full compliance with the PPSAs and the laws of the land, the termination has now been fully effected,” Takele said in a tweet.

“As long as the financing that would enable to develop the oil and gas fields the Ministry is open for mutual and expeditious settlement,” he added.

The ministry’s report presented for parliament in May, put non-performing performing companies such as Poly CGL among the challenges for the mining sector’s growth, stating that last warning was given to the company.

On Wednesday, Takele said the Ministry of Mines would implement similar measures on other firms who could not live up to their contracts.

Ethiopia is actively searching for international companies that could develop the 7 trillion cubic feet of natural gas in the Ogaden basin, Somali region.

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