Petronas sells Ethiopian assets to SouthWest

October 6, 2010

Malaysian state-owned player Petronas has agreed to sell its oil and gas interests in Ethiopia to Hong Kong-based SouthWest Energy.

SouthWest said it had agreed to purchase 100% of Petronas’ interests in Blocks 3&4, 11&15, 12&16, 17&20 and the Calub & Hilala contract area.

All of the blocks are located south-east of Addis Ababa, in the Ogaden Basin, the largest proven hydrocarbon bearing sedimentary basin in Ethiopia, with proven gas reserves of 2-4 trillion cubic feet.

SouthWest chief executive Tewodros Ashenafi said the acquisitions provided the company with an opportunity to expand its exploration and production activities in the country.

“We intend to develop these new blocks together with our existing blocks as quickly as possible and to work on developing transport solutions for hydrocarbons in the Ogaden Basin,” he said.

The transaction is expected to be completed during the first quarter of next year.