The Government of Ethiopia today announced that it has revoked natural gas and crude oil exploration and production license of the Chinese company, Poly GCL registered in the tax haven – British virgin island.
As of yesterday, we have suspended their licenses for exploration and production of natural gas and crude oil in Ethiopia,” said Eng. Takele Uma, Minister of Mines of Ethiopia, who briefed journalists.
The reason for the revocation was because Poly GCL has not been able to fulfil all the required finance, technology to start production of natural gas as per the expectation of the Government of Ethiopia, according to Eng. Takele.
If tomorrow the managed to fulfil what the people of Ethiopia and the Government of Ethiopia expects from them in order to develop the natural gas and natural resources of the country, the company is still welcomed, according to Eng. Takele.
The Minister stated that even though the Government of Ethiopia has been trying to help Poly GCL to fully commit itself and commence the development of the natural gas and crude oil of Ethiopia, the company was not able to go fully operational fulfilling all the requirements.
“…This morning also we have also been in discussion with the company (Poly GCL) explaining why we revoked their license,” he said. “Even though the Government of Ethiopia has shown the patience in supporting them, meanwhile it can’t continue with such patient for many years,” he said, indicating that the measure taken by the Government of Ethiopia will be a good lesson for all companies engaged in minerals development in any part of the country.
It is recalled that in June 2018 Poly GCL has commenced test gas production around Ogaden Basin in Eastern part of Ethiopia.
The Government of Ethiopia a few weeks ago also has announced completing of its natural gas reserve analysis by a joint U.S. and Dutch company, where at the launching of the report Eng. Takele expressed his Government’s readiness to welcome a U.S. company interested in developing the natural gas and crude oil of Ethiopia.