DJIBOUTI ( Halbeeg News)-Djibouti has won Ethiopian oil transshipment deal and the construction of a pipeline from Somali regional State which was estimated to cost $4 billion.
According to Ethiopian local media, the two countries this week agreed to establish a pipeline to export oil from eastern Ethiopia through the port of Djibouti.
The construction of an Ethiopian oil refinery in Djibouti at an estimated cost of $2 billion has also been signed.
Mid last year, Ethiopian government announced the beginning of crude oil extraction from the country’s Somali dominated region, the government confirmed.
Poly GCL, Chinese owned company which engaged in oil and gas exploration in March 2017 discovered oil and natural gas in Somali regional state.
According to the company, the amount of the Gas in the discovered deposits is estimated to be 8-6 trillion cubic feet.
Ethiopian Prime Minister Abiy Ahmed allowed the company to kick-start crude oil production test in the region officially.
Poly-GCL explored the Culub and Hilal gas fields in Ogaden basin.
During the exploration of the oil and Gas in the region, several Chinese experts and Ethiopian soldiers were killed in 2007 when heavily armed fighters from Ogaden National Liberation Front (ONLF) stormed the site.
Among those killed in the area, were nine Chinese workers, the government of China and Ethiopia condemned the act.
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