China’s POLY-GCL Petroleum Group Holdings Ltd has completed drilling two appraisal wells in southeast Ethiopia, according to a senior official.

The wells in the Calub and Hilala fields in the Ogaden Basin should contain deposits of 407 trillion cubic feet of liquid natural gas (LNG) and 13.6 million barrels of associated liquids, says Ethiopia.

Waqgari Furi, State Minister of Mines, Petroleum and Natural Gas, said: "They have finished drilling and are now conducting tests on the reservoir. Tests will conclude soon."

He told Reuters in an interview on Thursday, December, 31, 2015; since they are working fast Ethiopia may begin gas production in 2016.

POLY-GCL is a joint venture between state-owned China POLY Group Corporation and privately owned Hong Kong-based Golden Concord Group. It plans to drill five wells in southeast Ethiopia, including three wildcat exploration wells.

The Company’s website states that the project involves developing the fields and building a pipeline from Ethiopia to the coast of Djibouti, where it will construct an LNG plant and export terminal.

POLY-GCL has agreed with Ethiopia’s Mines Ministry in late 2013 to develop both fields in the Ogaden Basin.

Source: af.reuters.com