Ethiopia cancels Chinese oil explorer contract over unfulfilled ultimatums


ADDIS ABABA - POLY-GCL Petroleum Group Holding Limited- a Chinese-based oil and gas exploration firm has had its canceled by the Ethiopian government over unfulfilled ultimatums.

According to Takele Uma Banti, Ethiopia’s Minister of Mines & Petroleum, the Chinese firm was issued with a list of conditions that they were supposed to meet in order to continue exploring the oil and gas Ogaden Basin, in the Somali regional state.

The government earlier this year issued a letter of an ultimatum with a list of conditions to POLY-GCL Petroleum Group Holding Limited that were to be met by the company relating to its activities in the oil resource-rich region.

According to a statement by on “Takele Uma Banti’s Twitter post “In accordance with the successive notices the Ministry has issued in the past and in full compliance with the PPSAs and the laws of the land, the termination has now been fully effected.1/2.”

The Ministry warned the company that failing to comply with the ultimatum will result in the “termination of the PPSAs without a need for further notice.”

Takele further added that “As long as the financing that would enable to develop the oil and gas fields the Ministry is open for mutual and expeditious settlement.”

POLY-GCL has been exploring petroleum & natural gas in the Ogaden basin since 2013. On June 28, 2018, it officially started crude oil production tests in the Hilala oil fields in the presence of regional officials and representatives of the federal government.

The Chinese firm was praised as an important milestone in the history of oil & gas exploration in Ethiopia with Prime Minister Abiy terming it a successful venture for the country.

Four years later the government issued a warning letter to the company citing its failure to meet the government’s plans.


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