China Oil HBP Wins USD313 Million Bid to Commission Ethiopian Gas Fields

China Oil HBP Wins USD313 Million Bid to Commission Ethiopian Gas Fields

Tang Shihua

Date: Thu, 09/06/2018 - 14:52 / source:Yicai
China Oil HBP Wins USD313 Million Bid to Commission Ethiopian Gas Fields
China Oil HBP Wins USD313 Million Bid to Commission Ethiopian Gas Fields

(Yicai Global) Sept. 6 -- China Oil HBP Group, which provides integrated solutions for oil and gas resource development, has won a USD313 million bid to commission natural gas fields that will utilize the Ethiopia-Djibouti pipeline.

Poly-GCL Petroleum Investments awarded it the contract yesterday, HBP said in a statement the same day. The group will take charge of surface construction at the Calub and Hilala gas fields in southern Ethiopia’s Ogaden Basin under the two-year contract, and build long-distance gas pipelines to support the project, it added.

The facility will form part of the Ethiopia-Djibouti oil and gas project, which is being run by China-based Poly-GCL. HBP will collect and process natural gas at the Ogaden Basin before pumping it to a plant in Djibouto for liquefaction, after which hit will be exported to China and other countries.

Poly-GCL and the Ethiopian Ministry of Mines, Petroleum and Natural Gas agreed in January to start the pipeline after discovering several trillion cubic feet of natural gas. More Chinese companies have been looking to become more involved in Africa as part of the Belt and Road Initiative devised by Chinese President Xi Jinping in 2013. The 30- to 40-year grand plan envisions a vast infrastructure and trade network spanning roads, rails, pipes and seas across several continents.

The bid victory marks major progress for HBP in Africa, the statement added, noting that the deal was worth more the company’s operating income for last year and will improve performance through 2020.

Editor: James Boynton

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Keywords: Oil, Gas, BELT AND ROAD, Ethiopia, Djibouti, Poly-GCL Petroleum Investments, China Oi HBP