Sheger Tribune

Ethiopia says eyes gas production in six years Reuters reports 

* Eleven firms licensed in 31 blocks

* Chinese firm to spend $4 bln

By Aaron Maasho

ADDIS ABABA, Aug 3 (Reuters) - Ethiopia, which has seen a surge in requests for exploration rights, hopes to produce gas from its huge and under-developed reserves in its Somali Region in six years time, an official said on Wednesday.

Eleven companies have now been granted licenses to develop 31 blocks out of 41 throughout the Horn of Africa nation, which believes its Ogaden basin in the south-eastern province may contain gas reserves of 4.7 trillion cubic feet of gas and major oil deposits.

Chinese firm PetroTrans signed a deal in July for concessions to Ethiopia's Calub and Hilala gas fields. The company will spend $4 billion to develop the reserve, according to the ministry of mines.

"Our effort is to develop the discovered resources as quickly as possible," Ketsela Tadesse, head of licensing at the Ministry of Mines, told Reuters in an interview.

"In five or six years time there may be a chance to produce gas," he said.

Ketsela said "several" firms have filed requests to explore oil and gas in the country's Ogaden, Abay, Mekelle, Metemma, Gambela and the Southern Rift sedimentary basins.

Licences have been awarded for 31 out of more than 40 recognised blocks, of which 18 are in the Somali Region, he said.

"All these regions are underexplored, but companies are now interested to work with us," Ketsela added.

Tullow Oil , Epsilon Energy Limited and Pexco Exploration are among the foreign firms that have been granted licenses in the last three years, Ketsela said.

"The door is open for private investors," Ketsela said of the Somali Region. (Editing by George Obulutsa and Keiron Henderson)