Ethiopia, Malaysia’s PETRONAS Sign Petroleum Exploration Agreement

Ethiopia, Malaysia’s PETRONAS sign petroleum exploration agreement

ADDIS ABABA, July 25 (Xinhua) — Ethiopia’s Ministry of Mines and PETRONAS, the Malaysian oil firm, on Monday signed a four-year exploration and production agreement to enable the latter explore and produce petroleum in Ethiopia.

According to the agreement signed here by Ethiopia’s Minister of Mines Mohamoud Dirir and PETRONAS President Mohammad Hassen, the Malaysian oil firm will undertake exploration and production of petroleum around Kelafo, Welwel-Warder and Genale localities in east Ethiopia’s Somali state.

Speaking at the signing ceremony, Mohamoud said the engagement of PETRONAS in petroleum exploration in Ethiopia has a significant impact for the country’s prospect of petroleum exploration and production.

According to the agreement, the company would be granted an exclusive right to engage in exploration and development of petroleum within license area for the coming 25 years.

The corporation shall spend a minimum capital of 15 million US dollars for the exploration activities, according to the agreement.

Mohammad Hassen, on his part, said he believed his company will be successful in Ethiopia.

Established in August 1974 and based in Malaysia’s capital Kuala Lumpur, PETRONAS is Malaysia’s national petroleum corporation wholly- owned by the government.

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