Petronas to drill exploration wells in Ogaden

By Kaleyesus Bekele | The Reporter

The Malaysian oil and gas company, Petronas, is to drill three oil exploration wells in the Ogaden basin this year.

Petronas has hired Weather Ford, a Dubai-based company, to carry out the drilling. Reliable sources told The Reporter that Weather Ford has agreed to drill exploration wells in the Genale block, block 11 and 15 of the basin. They disclosed that Weather Ford has mobilizing its crew and drilling rigs, adding that officials of the company will soon come from Dubai. Weather Ford is engaged in oil and gas exploration work in the Middle East.

In 2004, Zhongyuan Petroleum Exploration Bureau (ZPEB), a Chinese company, was contracted by Petronas to conduct seismic survey and to drill exploration wells in the Gambella block owned by Petronas. Petronas acquired the Gambella block, which covers about 16,000 sq. km of land, in June 2003. ZPEB collected seismic data on 1500 km. Accordingly, in 2005 ZPEB drilled the first wild cat well in Jikaw locality, 175 km away from the Ethio-Sudan border. The company drilled the second well in Jakaranda locality in 2006. Both wells turned out dry. Petronas spent 32 million dollars for the drillings and testing. ZPEB withdrew from Gambella after it finalized it work in 2006.

However, in the same year, Petronas hired ZPEB to conduct seismic survey in the Ogaden basin. In July 2005, Petronas acquired three blocks in the Ogaden basin – Genale block (24,420 Sq km), Kallafo (30,612 sq.km) and Welwel-Warder (36,796 sq.km). In 2006 ZPEB started collecting seismic data in the three blocks.

In October 2006 South West Energy hired ZPEB to conduct a seismic survey in the Ogaden basin. In December 2005, South West Energy, a company owned by an Ethiopian businessman, acquired a Degehabur block covering 21,187 sq.km. of land. In January 2007, ZPEB commenced collecting seismic data in the Degehabur block.

On Apill 24, 2007 the Ogaden National Liberation Front (ONLF) attacked the Abole exploration site in the Degehabur zone of the Somali Regional State. Seventy-four civilians, including nine Chinese workers, were killed in the attack. Seven Chinese workers were abducted by ONLF fighters in the same incident. However, they were released two weeks later. Following the attack in May 2007, ZPEB evacuated all its employees working in Ethiopia. Though the Ethiopian government has made attempts to convince officials of ZPEB and SINOPEC to resume operation, the companies have declined to send their professionals back to Ogaden.