China to Explore Oil in Western Ethiopia Near Sudanese Border

The Chinese petroleum company, Zhongyuan Petroleum Exploration Bureau (ZPAEB), will start drilling the first exploratory well in the Gambela basin, in western Ethiopia.

The Gambela concession is an area covering 19,300 sq km near the Sudanese border.The Gambela basin is the southern tip of the Melut basin, one of the most prospective areas in the Sudan.

ZPAEB is contracted by Petronas, the Malaysian company which signed an agreement with the Ethiopian Ministry of Mines and Energy (MoME) to explore and develop oil reserve in the Gambela concession.

Abiy Hunegnaw, head of the Petroleum Operations Department with the MoME, told The Reporter that ZPAEB will soon import well-drilling rig and other equipment to Ethiopia. Abiy said the road that will be used to transport the machines to the Gambela concession was paved.

"We are working on the shipment documents of the machinery," he said.

According to Abiy, the company will commence work on the drilling project next February.

"Petronas is discharging its responsibilities properly. The company is implementing the programme according to schedule. It is even beyond our expectation," he added.

The dry season in Gambela is only four month-long and the contractor anticipates to finalize the drilling work on the first exploratory well within the dry season. The cost of the drilling is estimated at 15 to 16m dollars.

The American oil company, Chevron, conducted gravity and magnetic surveys in the Gambela basin in 1983.