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The Chinese oil and gas company, Poly-GCL Petroleum Investments, has awarded a 313 million dollars bid to another Chinese company, China Oil HBP Group, to commission the Calub and Hilala natural gas fields in the Ogaden basin, it was learnt.
China Oil HBP Group, which provides integrated solutions for oil and gas resource development, has won the bid to commission the natural gas fields that will utilize the Ethiopia-Djibouti pipeline.
Poly-GCL Petroleum Investments awarded the contract last week. In a statement issued by China Oil HBP, the group said that it will undertake surface construction at the Calub and Hilala gas fields which has an estimated gas reserve of four trillion cubic feet (TCF). Under the two year contract, China Oil HBP will make the gas fields ready for production and build long-distance gas pipeline to support the project.
According to the statement, China Oil HBP will collect and process the natural gas at the Ogaden Basin before pumping it to a Liquefied Natural Gas (LNG) plant to be built in Djibouti. Poly-GCL plans to change the gas into LNG and export it to mainly China. “The natural gas will be liquefied and exported to China and other countries,” the Chinese firm said.
Poly-GCL and the Ethiopian Ministry of Mines, Petroleum and Natural Gas agreed in January to start the pipeline construction after discovering several trillion cubic feet of natural gas.
Poly-GCL signed petroleum development agreement with the Ministry of Mines, Petroleum and Natural Gas in November 2013 that enables it to develop the Calub and Hilala gas fields. The gas fields were first discovered by an American company called Tenneco in 1972. Later in the 1980s a former Union of Soviet Socialist Republics (USSR) company, Soviet Petroleum Exploration Expedition (SPEE), confirmed the gas reserves.