The Ethiopian Ministry of Mines (MoM) signed a petroleum production sharing agreement (PPSA) with Poly GCL Petroleum Investment Ltd., a Chinese based company, Fortune reported.

The subject of the agreement signed on November 16, 2013 is the Calub & Hilala gas fields, located in the Ogaden basin of Ethiopia.

The area's potential for natural gas reserve is first identified in 1930s. In 1972 the U.S. based Tenneco confirmed the presences of gas reserve in the area.

Previously, several companies including, Petronas Carigali, Soviet Petroleum Exploration (SPE), PetroTrans and Zhoungyan Petroleum Exploration Burea (ZPEB) were involved in the development of the Calub & Hilala gas fields.

Source: Fortune