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Ethiopia to begin crude oil pipeline installation linking Djibouti

Ethiopia announced plans to begin the construction of the 760-km crude oil pipeline that extends from Ogaden area of Ethiopia to Djibouti this year.The country’s state minister of mines and petroleum Dr Kuang Tutla on Saturday in a briefing said his office is waiting for the Council of Ministers’ approval of the deal signed between Ethiopia and Djibouti to begin the construction.

When completed in 2020, the pipeline will enable Ethiopia sell its gas resource from Calub and Hilala fields in Ogaden area of Somali Region via Djibouti Port. Calub and Hilala fields have deposits of 4.7 trillion cubic feet of gas and 13.6 million barrels of associated liquids, both discovered in the 1970s but not yet exploited.

According to the minister, 3,900 barrels have been supplied to markets so far from the gas field developed by the Chinese Poly-GCL Petroleum Investment Limited in the Ogaden region, Somali regional state.

 He said the construction of the pipeline will be commenced once the deal is approved by the Council. 

Last year, Ethiopia and Djibouti signed agreement for installation of 765 kilometers gas pipelines between the two countries..



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